Leading Lib Dem calls for immediate probe into council finances

7.39.13pm GMT Mon 21st Jan 2008

Leading local Lib Dem, Serena Tierney has called for the MSDC Audit Committee to set up an urgent investigation into council finances after an audit report into last year's Big Culture Show revealed catastrophic failure of MSDC's financial management systems.

"Haines Watts says that for the Big Culture Show there were 'weak and inappropriate contract and tendering arrangements', 'weak governance and budgetary control in running the contract' and 'inadequately controlled procurement processes'.

"This was a small project compared with the Town Centre Revitalisation projects and the Core Strategy. What is happening to financial controls on those? Haines Watts have made eleven recommendations for immediate measures to control the council's finances. Eleven. Every single one of one of them is said to be so critical that without it there will 'certainly' be a serious financial consequence for our money. How much more of our money is at risk?"

The cabinet member responsible for Leisure Service at the time of the event, Tory Chris Hersey resigned last year following pressure by Lib Dem councillors when the extent of the loss was revealed.

Serena warned that the council has many contracts currently under way and that there is no evidence that they are any better managed.

"Lib Dem councillors will be pressing the MSDC Audit Committee to commission an immediate urgent investigation by the internal auditor into ongoing contracts including the main Thornfields one. Millions of pounds of our money are at risk here. We cannot rely on airy assurances by the Chief Executive that people "will be reminded of the need to follow financial procedures."

"It is alarming to note in another report to Audit Committee meeting, Haines Watts detail five earlier audit recommendations that have taken over 18 months to implement. One has taken over 3 years! We cannot afford for financial mismanagement on this scale to continue. We must ensure that these eleven recommendations are implemented immediately and fully."