03 October 2003
Chester-le-Street District Council, currently under heavy scrutiny by the Office of the Deputy Prime Minister, has confirmed it is investigating a potential breach of government outsourcing guidelines following the award of a controversial local maintenance contract.
The County Durham local authority, which was referred to ministers by the Audit Commission following a damning report on its housing department in 2001, has also asked a neighbouring authority to review the contract award and suggest improvements to its procurement process.
Council officials raised concerns over a council house boiler maintenance contract worth around £500,000 over the summer.
The Labour-controlled council discussed the issue at a meeting held on September 25, after which it revealed to Public Finance that director of development services Barry Bradshaw had taken early retirement from the authority.
A source close to the discussions made it clear that the council's investigations do not relate to possible misconduct by any officers or councillors.
A spokesman for Chester-le-Street said: 'The executive has become concerned about the way a contract was let recently. In order to get a fully independent review, they have asked another authority to investigate the facts and make recommendations as to how procedures might be improved.'
PF this week learnt that the commission also approached Chester-le-Street for an explanation of events leading up to the award of the contract.
Dave Parkin, the district auditor, said: 'I have discussed the issues with chief officers and leading members and, on the basis of information currently available, I am satisfied that there is no need at this stage for formal audit action.'
But he refused to rule out further scrutiny: 'The council has already started its own investigation and I have agreed to await the outcome of that work before considering whether to take any further action.'
Chester-le-Street is currently managed by acting chief executive Bernadette Marjoram, who was drafted in to lead the council's housing department in the wake of the commission's report.
The housing department is guided, in part, by a housing advisory board, set up following a recommendation by the ODPM.
PFoct2003
