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

Independent Living Officer

Kirklees Metropolitan Council
£26,403 - £28,142
Our employees are at the very heart of the services we provide to the community Kirklees, West Yorkshire
Recuriter: Kirklees Metropolitan Council

Catering Assistant

North Yorkshire Council
£13.28 per hour
We have an opportunity to join our award-winning Facilities Management catering team York, North Yorkshire
Recuriter: North Yorkshire Council

Cleaner and Caretaker

North Yorkshire Council
£13.28 - £13.47 per hour
Are you looking for a part time cleaning role? York, North Yorkshire
Recuriter: North Yorkshire Council

Cleaner and Caretaker

North Yorkshire Council
£13.28 - £13.47 per hour
Are you looking for a part time cleaning role? York, North Yorkshire
Recuriter: North Yorkshire Council

Team Leaders

Durham County Council
Grade 8 £32,597 - £36,363
Team Leaders – Opportunities are available across the County Durham Area   Salary
Recuriter: Durham County Council
Linkedin Banner