Whistleblower reports, KPMG auditors alarm flashing red-red-red, police investigation, and with £13.5million overspent and unnecessary maintenance work carried out…. How could the Council miss the warning signs that something was amiss?
Heminsley Law’s report (attached below) makes for shocking reading……
Précis: An independent report by Heminsley Law has revealed that senior officers at Guildford Borough Council missed 13 “key red flags” related to a housing maintenance contractor, leading to significant risks. These issues were not addressed despite whistleblower allegations of fraud and concerns raised by external auditors.
The investigation focused on the decision to increase the housing maintenance budget from £5m to £24.5m in February 2022, and it was found that approximately £13.5m was overspent, with unnecessary maintenance work carried out. The whistleblower allegations, which emerged in 2022 and 2023, triggered a police investigation into potential criminal activity.
Heminsley’s report found that, although senior management was unaware of the overspend until 2023, there were numerous red flags that should have been apparent, including concerns over procurement practices, conflicts of interest, and the urgent need for contract procurement in 2021. The report also highlighted that by February 2023, senior management should have recognized the risks associated with the contractor and taken action to address them.
Further failings in governance and monitoring were identified, with a lack of sufficient controls to manage spending and ensure compliance with procurement obligations. Despite the issues being apparent by 2023, they were not reported to the council’s members prior to the investigation.
Following the investigation, several officers were suspended, and agency contracts were terminated. The police investigation is ongoing. The council’s leadership has committed to improving governance and ensuring transparency and accountability moving forward…… let us see how that works out…
In2 the bargain 