William Eichler 16 January 2019

Newham to improve financial management after £9m fraud allegations

The Mayor of Newham has announced plans to set up a commission to advise the council on how to ‘become a beacon of good practice’ in its financial management.

Mayor Rokhsana Fiaz and her cabinet members proposed setting up the Internal Control Commission in the wake of allegations of a £9m fraud in the local authority’s repairs and maintenance service (RMS) under the previous administration.

The proposed commission, which will be discussed next Tuesday at an ‘extraordinary meeting’, would be led by an independent chair and would look at how the council can become a model of best practice for internal control and governance.

It would also look into how the council could not prevent issues in RMS from arising in the first place.

The allegations of fraud and financial mismanagement were first made in December after a whistleblower drew attention to the problem.

A council investigation discovered that there was an £8.78m overspend during the 2017/18 financial year, caused by the loss of control of the Keep Newham Moving highways repair programme, which was agreed in 2016.

Insufficient due diligence and risk assessment was undertaken when RMS undertook the programme to assess its capacity to deliver, the council found.

It concluded that there was ‘insufficient evidence of criminal activity’.

‘I am committed to making Newham Council more open and transparent than ever before. In the spirit of that promise, I welcome the consideration to establish an Internal Control Commission,’ said Mayor Fiaz.

‘This proposal aligns with my administration’s commitment to transparency, and improving the governance of the Council in the interests of all Newham residents. We are putting things right. We have been proactive in resolving the financial mismanagement in RMS and taking clear action.

‘I have instructed the new management team at RMS to implement a whole series of measures designed to offer reassurance on the effectiveness, governance, and efficiency of management, performance and compliance.’

SIGN UP
For your free daily news bulletin
Highways jobs

Specialist Senior Educational Psychologist

Essex County Council
£59809.00 - £63638.00 per annum
Specialist Senior Educational PsychologistPermanent, Full TimeSoulbury Scale B from 3 to 5 plus SPA Location
Recuriter: Essex County Council

Procurement Assistant Manager - Contract Management Focus

Essex County Council
£36531.0000 - £42977.0000 per annum
Procurement Assistant Manager - Contract Management FocusPermanentFull Time, 37 hours per week£36,531 to £42,977 per annum plus Flexible Working & Loc England, Essex, Chelmsford
Recuriter: Essex County Council

Head of Economy and Climate

Powys County Council
£82,607 - £90,651 per annum
Powys is entering a once-in-a-generation period of opportunity. Llandrindod Wells, Powys / Agile
Recuriter: Powys County Council

Head of Occupational Therapy Services

Essex County Council
£69241 - £78950 per annum + Flexible Working, Hybrid Working
Occupational Therapy has a critical role to play in transforming Adult Social Care. In Essex, we believe Occupational Therapists are central to helpi England, Essex, Chelmsford
Recuriter: Essex County Council

Digital Support Analyst

Essex County Council
£30685.00 - £36099.00 per annum + + 26 Days Leave & Local Gov Pension
Digital Support AnalystPermanent, Full Time£30,685 to £36,099 Per AnnumLocation
Recuriter: Essex County Council
Linkedin Banner