William Eichler Wednesday, January 16, 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

Youth Engagement Worker

Wakefield Council
Grade 7 SCP 19 £16,030.50 - Grade 7 SCP 23
What will be expected from me? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Family Hub Support Worker

Wakefield Council
£14,299.00 - £15,768.50, Grade 6
We are seeking two Family Hub Support Workers to support our Children and Young People Service Team. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Youth and Community Development Support Worker

Wakefield Council
JNC 5 £25,580 - JNC 6 £25,919
Are you passionate about making a difference to our citizens and the district that they reside in? Wakefield, West Yorkshire
Recuriter: Wakefield Council

Care Assistant

Wakefield Council
£17,560.14 - £17,839.86, Grade 4
We are looking for an experienced Care Assistant as part of our Flanshaw Lodge Care Team. Wakefield, West Yorkshire
Recuriter: Wakefield Council

Development Management Officer - Flood WMF2963e

Westmorland and Furness Council
£42,839 - £44,075
This role supports the Council’s range of flood and coastal risk management functions Barrow in Furness, Cumbria
Recuriter: Westmorland and Furness Council
Linkedin Banner