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

Specialist Literacy Teacher (Experts at Hand)

London Borough of Richmond upon Thames and London Borough of Wandsworth
£47,961 - £54,131 plus SEN minimum £2,885
Specialist Literacy Teacher (Experts at... Wandsworth, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Support Worker - Family Time and Support Service North

Essex County Council
£26284.00 - £33256.00 per annum + + 26 Days Leave & Local Gov Pension
Support Worker - Family Time and Support Service NorthPermanent, Full Time£26,284 to £33,256 Per AnnumLocation
Recuriter: Essex County Council

Part Time Support Worker - Family Time & Support Service

Essex County Council
£26284.00 - £33256.00 per annum + Pro Rata
Part Time Support Worker - Family Time and Support Service NorthPermanent, Part Time£26,284 to £33,256 Per Annum, Full Time EquivalentLocation
Recuriter: Essex County Council

Executive Director Children and Education (DCS)

West Surrey Council
£161,239 - £177,363 plus benefits (with flexibility for an exceptional appointment, up to £190,000)
Build the future. Shape lives. Lead change. West Surrey
Recuriter: West Surrey Council
Linkedin Banner