£18.5m HRA Overspend Investigations Plod On One Year After Suspensions and Sackings

Published on: 12 Sep, 2024
Updated on: 12 Sep, 2024

By Martin Giles

Investigations into an £18.5 million housing maintenance contract overspend continue at Guildford Borough Council and Surrey Police with no end apparently in sight, twelve months on from the day the council suspended two officers and terminated the contracts of five interims.

As well as a GBC internal investigation into the Housing Revenue Account overspend, another is being conducted by Reigate & Banstead Council’s anti-fraud unit. And another, a criminal investigation into possible fraud, is being undertaken by the police South East Regional Organised Crime Unit (SEROCU).

In February, two joint senior directors appear to have been given little option but to voluntarily “step back” from their duties. Annie Righton subsequently resigned and Ian Doyle remains on fully paid “gardening leave” not allowed to carry out any council work. At the time, it was said that the action was to  “protect the integrity of the investigation”.

See: Senior Directors Step Back Following New Report on Fraud & Overspend Investigation

It is understood that both directors were, at certain times, in the management line above the housing maintenance team. The councillor responsible for housing at GBC remains Julia McShane (Lib Dem, Westborough) but she is staying tight-lipped on the issue.

Cllr Julia McShane

The Dragon asked Cllr McShane the following:

1. How long is it anticipated that the non-police investigations will continue?

2. Why is it taking so long to discover what happened?

3. What is the status of the two officers suspended?

4. What is the current status of Ian Doyle, the senior director asked to “step back”.

5. When were you, as lead councillor for housing, made aware of the overspend issue?

6. Are you concerned that the delay to the outcome of this investigation is further damaging the reputation of GBC?

7. On July 9, a report published by the Regulator for Social Housing (RSH) said there were “serious failings” in GBC’s management of its housing estate, including compliance with fire, asbestos and electrical regulations. Are all council properties now fully compliant? If not, what work is still outstanding?

This was Cllr McShane’s response: “We are unable to provide any specific details or comments related to our ongoing enquiries. We remain committed to transparency and will release further information when it is appropriate and permissible to do so.

“We have acknowledged and fully accepted the Regulator’s findings following our self-referral and the subsequent responsive engagement period. These findings have been published on our website.

“Our engagement with the Regulator is ongoing and plays an integral and intensive part of our improvement plan as we work to resolve all of the issues identified and achieve full compliance for our residents.”

See also: Council Leader Apologises to Tenants ‘Left in the Lurch’ by Fraud Investigation Delays

A spokesperson for SEROCU said: “Our investigation is ongoing. A man in his fifties has been released [from bail and is] under investigation.”

But according to reliable sources no one has been charged by the police and only one arrest made, that of one of the dismissed contractors who declined to go to a police station to be interviewed voluntarily and is understood to have been released within hours.

At least four police interviews, under caution, are understood to have been conducted as well as several property searches and the seizure of computers and mobile phones, many months after the investigations started.

One of those sacked has said that he had a travel ban briefly imposed as well as a court order sought by GBC prohibiting him from disposing of assets. Part of the order has now been rescinded.

Cllr Bob Hughes

Cllr Bob Hughes (Con, Tillingbourne), who has complained previously about the lack of information given to councillors about the investigations, said: “Despite promises of being open about why they let housing contracts get out of control by millions of pounds of our money, it is one year on, and nothing from the Lib Dems who run Guildford Council.

“Plainly the Lib Dems only want us to know what they decide we should know, but they have questions to answer.

“Are there any outstanding allegations against the senior officers they abruptly suspended? What has happened to the enquiry they launched? Is our council facing claims for wrongful or constructive dismissal?

“Being open with the public only hurts if you have something to hide.”

See also: Dragon Interview: Cllr Bob Hughes on the GBC’s HRA Investigation, GBC’s New Chief Exec Hopes to Draw a Line Under the Fraud Investigation and What More Does the Solace Report Tell Us About the Housing Revenue Account Investigation?

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