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

Programme Manager - Castle Point Borough Council

Essex County Council
Up to £550.0000 per day
Programme Manager - Castle Point Borough Council Castle Point, Essex Full-Time, Temporary 2 month contract £550 per day Umbrella, Outside IR35 Project England, Essex, Thundersley
Recuriter: Essex County Council

Finance Assistant - Debt Collection - 12-month FTC

Essex County Council
Up to £25959 per annum + + 26 Days Leave & Local Gov Pension
Finance Assistant - Debt Collection - 12-month Maternity Cover Fixed Term ContractFixed Term, Full Time£25,081 per annumLocation
Recuriter: Essex County Council

Shared Planning Lawyer

Broxbourne Borough Council
Up to £68,506 pa
Are you a focused, enthusiastic team player who enjoys a varied and interesting caseload Cheshunt, Waltham Cross
Recuriter: Broxbourne Borough Council

Strategic Director of Adult Social Care and Health

Tameside Metropolitan Borough Council
circa £130,000 p.a.
Are you someone who leads with heart, thinks with vision, and delivers with impact? Tameside, Greater Manchester
Recuriter: Tameside Metropolitan Borough Council

Assistant Director of All Age Commissioning

Tameside Metropolitan Borough Council
£107,521 p.a.
Are you someone who leads with heart, thinks with vision, and delivers with impact? Tameside, Greater Manchester
Recuriter: Tameside Metropolitan Borough Council
Linkedin Banner