Walsall Council accounting cock-up

News
Walsall Council accounting cock-up
The YamYam 10 Mar 10
After failing to account for at least £1million in European Union grants, Walsall Council finds itself the subject of an independent inquiry. External auditors Grant Thornton are investigating how cash dished out to local groups remains unaccounted for.

Walsall Council has had to admit that it cannot find the receipts for grants issued between 2001 and 2006 and has had to reimburse the EU at tax-payers expense. The true cost of the blunder is not known as council bosses remain secretive about the mistake. But speaking last June, Councillor Adrian Andrew, cabinet member for regeneration, said that “the worst case scenario” could result in a figure as high as £4million.

Last year, following a five year investigation by the Crown Prosecution Service and the City of London Police, the council was cleared of any criminal activity involving mismanagement of £42million in government grants from the Neighbourhood Renewal Fund. The affair led to a massive £600,000 pay out to whistleblower Peter Francis who was wrongfully dismissed after alerting council bosses to the irregularities.

In this latest investigation, Grant Thornton has interviewed a number of former and existing council officers. Blakenall Councillor Ian Robertson, a member of Walsall Council audit committee, said: “I am aware they have been interviewing quite a number of people. This has seen a substantial amount of money lost to the tax-payers of Walsall. I will be very interested to see what they have to say and I’m sure I won’t be the only one.”

Commenting on the latest probe into money being wasted, cabinet member for finance, Councillor Chris Towe, said: “I can certainly assure people in Walsall that it won`t happen again.”

The results of the inquiry are expected next week but it is not known if they will be made public. The cost of the inquiry has not been revealed.

YamYam 15 Nov Audit: Walsall Council could do better
Express & Star 29 Oct 09 Highways manager blames departure on Walsall Council
Walsall Council Cabinet report 18 Nov Walsall Council Governance Audit Report PDF
YamYam 17 Nov Council discrimination decision due in weeks
YamYam 15 Nov Audit: Walsall Council could do better
YamYam links 25 June Inquiry’s legacy still lingers says councillor
Express & Star 7July 09 (am) Whistleblower in row over EU cash crisis
BrownhillsBob 7 Jul That's alright then, it was that other bloke's fault
BrownhillsBob 30 Jun Lost property - can you help?
Express & Star 29 Jun Council must pay back up to £4m
Advertiser 25 Jun 09 Misspending legacy lingers on
Advertiser 18 Jun 09 Council cleared over £42m spending
E&S 13 Jun Council get all clear in police & CPS probe
B'ham Post 14 May 08 Council surveyor life threatened over bungs (Kemp: on-going)
TheyWorkforYou 7 Mar 08 Walsall Council Hansard debate (Francis, Parish, Kemp, McDonald)
Blog Bob Piper 17 Sep 07 What Walsall did to him (Francis)
Audit Commission 11 Sep 07 Range of failings led to payout (Francis)
Blog Bob Piper 6 Sep 07 Walsall cover-up
Blog Bob Piper 6 Sep 07 Report to blast Tory Council
Personnel Today 26 Jan 07 Out-of-court settlement for worker sacked by fax (McDonald)
Express & Star 23 Jan 07 Fax sacking woman wins cash (McDonald)
B'ham Post 6 Dec 06 Whistleblower's £650k payout (Francis)
Walsall Council 5 Dec 06 Council agrees settlement (Francis)
B'ham Post 25 May 06 Walsall pays out after sacking (Francis)
Blog Peter Francis What Walsall did to me (Francis)

Grant Thornton Home

Tags: Council, Scrutiny