An independent report into the reasons for the financial collapse of Croydon LBC that has finally been officially published has said ‘heads must roll’.
The report by investigator Richard Penn – a senior associate with the Local Government Association – was leaked last year but was published by the council on Friday.
Mr Penn, who interviewed more than 60 staff, councillors and external partners as part of his investigation, recommended that the council referred his report to the Metropolitan Police for ‘assessment of any further action being warranted in regard to the handling of public money and conduct in public office’.
He also urged the council to look into whether legal action can be taken to recover the financial settlement paid to former chief executive Jo Negrini.
Mr Penn wrote: ‘It is the case that heads must roll and must be seen to roll to give council staff the trust and confidence that things are going to improve for the future.’
A meeting of the council’s appointments and disciplinary committee next month is due to discuss referring former members and officers to the police and their professional bodies.
Legal advice received by Croydon from Browne Jacobson said there were ‘grounds for the council to make referrals to both CIPFA [Chartered Institute of Public Finance and Accountancy] and the SRA [Solicitors Regulation Authority] in respect of the former section 151 officer and the former monitoring officer respectively’.
The advice said the second report in the public interest contained ‘a number of findings that are highly critical of the former section 151 officer and ‘a number of findings of serious failings on the part of the then monitoring officer,’ adding: ‘Of particular relevance to the then monitoring officer as a practising solicitor were the failings found in relation to the lack of properly executed contractual and other documents, failure to act on legal advice received, failure to recognise/act on/prevent legal risk to the council and failures in record keeping.’
Speaking after the publication of Mr Penn’s report, Croydon’s executive Mayor Jason Perry pledged to do ‘all in his power to bring those responsible to account’.
Mayor Perry said: ‘The residents of Croydon and council staff quite rightly want and deserve to see justice done as they continue to pay the price for those who recklessly destroyed this council’s finances and the reputation of our borough – and I am determined to make sure that this happens for them and for Croydon.
‘I made a clear commitment to publish the Penn report because it is in the public interest and I’m pleased that we have finally been able to do so.
'The process has taken longer than anyone would have wanted and while I respect due process it is crucial that we now act quickly on the recommendations and hold those responsible for the financial collapse of Croydon LBC to account.’
This article was originally published by The MJ (£).
