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

Chief Quality Officer

Alternative Futures Group
£150,892 plus car allowance (£8,153-£10,192)
At Alternative Futures Group, we believe quality is not measured by processes alone. It is measured by the difference we make to people's lives. Hybrid / North West
Recuriter: Alternative Futures Group

Procurement Assistant Manager - Part Time

Essex County Council
£24681.0000 - £29037.0000 per annum
Procurement Assistant ManagerFixed Term, up to 18 months (March 2028) Part Time, 25 hours per weekUp to £ 29,037 per annum pro-rata Location
Recuriter: Essex County Council

Procurement Assistant Manager - Full Time

Essex County Council
£36529.00 - £42976.0000 per annum
Procurement Assistant Manager - Full TimeFixed Term, up to 18 Months (March 2028) Full Time, 37 Hours Per WeekUp to £42,976 per annum plus Flexible Wo England, Essex, Chelmsford
Recuriter: Essex County Council

Youth Justice Practitioner

Essex County Council
£38487.0000 - £51834.0000 per annum
Please note that visa sponsorship is not available for this role. Applicants must have a current, unrestricted right to work in the UK.Here in Essex, England, Essex, Epping
Recuriter: Essex County Council

Part Time Learning Support Assistant

Essex County Council
Up to £25959.00 per annum + Pro Rata
Part Time Learning Support AssistantPermanent, Part Time£25,959 Per Annum, Full Time EquivalentLocation
Recuriter: Essex County Council
Linkedin Banner