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

Director of Education

Stoke-on-Trent City Council
£111,136 – £116,521
The council is now looking for a social work qualified Director of Adult Social Care Stoke-on-Trent, Staffordshire
Recuriter: Stoke-on-Trent City Council

Adults, Health and Integration

London Borough of Hackney Council
London Borough of Hackney Council
Recuriter: London Borough of Hackney Council

Director APSE Synergy

apse
Starting salary £80,000, plus potential £5K subject to performance
As a relatively new start up, this is an exciting opportunity to shape the future of the company. Manchester, Greater Manchester
Recuriter: apse

Children’s Social Worker

Cheshire East Council
£39,000 - £41,771 per annum
As a Children's Social Worker, you'll work directly with children, families and partner agencies to safeguard children, promote their wellbeing Cheshire
Recuriter: Cheshire East Council

School Crossing Patrol

North Yorkshire Council
£13.28 - £13.92 per hour
Duty times
Recuriter: North Yorkshire Council
Linkedin Banner