Weather
Original Comment
Loakes is a disgrace. Who is he helping by staying in his job? It isn't the public and our right to know what has happened to our money.
Report this comment
WALTHAM FOREST: NRF fraud probe handed to police
9:43am Thursday 7th August 2008
THE scandal of widespread failings in the management of millions of pounds of taxpayers’ money is set to escalate, after the fiasco was referred to Parliamentary investigators.
The news comes after the private company which used to run education in the borough intervened at the 11th hour to block the publication of a report into allegations it used Neighbourhood Renewal Fund (NRF) money to boost profits.
However, the council has responded by handing its findings straight to police.
In a further blow to the council, which is still reeling from the exposure of its long-term systematic failure to look after cash earmarked to help the vulnerable, Chingford MP Iain Duncan Smith has passed evidence to the Public Accounts Committee (PAC).
This raises the possibility of forensic, independent scrutiny of NRF and its successor the Better Neighbourhoods Initiative (BNI), as well as a criminal prosecution by police.
Five council officers are currently being investigated for failing to report whistleblowers’ claims that EduAction misused £240,000 it was given from NRF to help vulnerable children through the Youth At Risk (YAR) programme.
The council says it is still unable to rule out corruption.
EduAction’s own investigations found no evidence of wrongdoing, but the council’s inquiry was expected to reveal that the company has not provided firm evidence that it had met its contractual obligations. EduAction has refused to reveal why it has moved to block the publication of the report.
Mr Duncan Smith has slammed the council’s handling of the affair, saying EduAction was ‘calling the shots’.
He said the council’s recent claims of transparency were ‘nonsense’ because it was refusing to release a secret report into the allegations completed last year.
He added: “We have been repeatedly asking to see the report, but the council has refused on the grounds of commercial confidentiality.
“This shows that EduAction is cracking the whip on this – the report should be in the public domain. I am concerned EduAction is calling the shots. These are major allegations about people who work with, and for the council.
“The council should have published the latest report and let EduAction take it to court. The council is not serving the interests of the community.
“Taxpayers have been let down. They have a right to know what is going on and there’s has been no political accountability.
“We are concerned about problems with NRF nationally and it appears the system was open to abuse. I think the current administration has been incredibly slack.
“They want to bury this. What is required is a fully independent inquiry about what has gone on.”
Last week Conservative group leader Matt Davis called for council leader Clyde Loakes to resign as chair of the Local Strategic Partnership, which is the accountable body for NRF/BNI.
Cllr Loakes has denied any responsibility for the failings, even though there is evidence he was made aware of serious concerns in March 2004.
A council spokesman said: "The Council have made repeated public commitments to publish our audit investigation into the Youth at Risk project delivered by EduAction.This is still our intention.
"The Council decided to refer this audit report to the police for their consideration. We have now given the report in its entirely to police and we await the decision of their independent review.
"We remain committed to publishing the findings of our investigation at the appropriate time but we cannot at this point as to do so could jeopardise any future police investigation."
Advertisers
Local Information
Enter your postcode, town or place name
