Council boss at centre of £8m fraud probe resigns
A COUNCIL boss has resigned after being probed over claims he received an all-expenses paid trip abroad from a firm later awarded an £8million contract.
Dundee City Council’s head of construction, Mark Ross, has told staff he is giving up the role he has held for more than ten years due to ill health.
But it has now emerged he is under investigation over claims a lucrative contract for replacing smoke alarms in council houses was awarded to a local firm without it going out to tender.
Edmundson Electrical was handed the contract just months after inviting Mr Ross on a Spanish golfing holiday.
It comes after local authorities were told by the Scottish Government to ensure every councilowned home contains at least one smoke detector in the room most frequently used, and at least one heat alarm in every kitchen.
Councils were ordered to update equipment in the aftermath of the
Grenfell Tower tragedy, which claimed the lives of 72 of its residents.
The project is expected to cost the taxpayer more than £8.3million. However, the Edmundson Electrical deal is now subject to a probe by the council’s corporate fraud team.
It is understood council officers began investigating in September amid allegations Mr Ross had been taken on an all-expenses paid trip by senior management at Edmundson Electrical.
The golfing trip is understood to have taken place in May.
It is claimed guests on the trip included a senior Edmundson staff member, another council employee and representatives of two other firms.
A second individual who was under investigation for allegedly selling unboxed heat and smoke alarms belonging to the council on eBay was allowed to resign in September after speaking to officials.
According to the council’s legal department, the smoke and carbon monoxide detectors contract was ‘awarded to Dundee Contracts who then subcontracted the work to Edmundson Electrical’.
It is understood Mr Ross has denied the allegations against him. Edmundson Electrical also denies any wrongdoing.
It claims to be part of the Scottish Government’s local authority procurement portal – known as the Scotland Excel framework.
Roger Drinkwater, head of compliance at Edmundson Electrical, said: ‘We are one of eight electrical distributors within the Scotland Excel framework and have fully complied with the confidential contractual arrangements between the company and Dundee City Council.’
Dundee Labour group leader Kevin Keenan, convener of the council’s scrutiny committee, warned bosses about concerns passed to him by the public about the Edmundson Electrical deal.
He said he received several reports in relation to the contract and wider issues within the construction team.
Mr Keenan told the Courier: ‘I have raised issues with senior management at the council in relation to Dundee Contract Services and have been told processes are under way.’
Dundee City Council refused to comment on the specific allegations.
‘We have fully complied’