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

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

SEND Caseworker

Nottingham City Council
£46,142 - £49,282
Are you passionate about making a difference to the lives of children and young people with Special Educational Needs and Disabilities (SEND)? Nottingham, Nottinghamshire
Recuriter: Nottingham City Council

Head of Children and Young People Services

Neath Port Talbot County Borough Council
£89,565 - £98,298
We are looking for an inspiring and experienced leader who is passionate about improving outcomes for children, young people and their families Neath Port Talbot (Castell-nedd Port Talbot)
Recuriter: Neath Port Talbot County Borough Council

Supported Accommodation Worker

Durham County Council
Grade 7, £31,015 - £34,811 per annum
Be the Person Who Helps a Young Person Believe in Their Future. Every young person deserves someone who believes in them. Someone who listens when l Durham
Recuriter: Durham County Council

Payments and Expenditure Officer

Durham County Council
£27,274 to £29,542 p.a. (Grade 5)
An exciting opportunity has arisen within Transactional and Customer Services for a Permanent Payments and Expenditure Officer working full time, 37 h Spennymoor
Recuriter: Durham County Council
Linkedin Banner