Scotland’s auditor general has been urged to intervene over a wall of silence surrounding allegations of corporate fraud at Dundee City Council.
Labour MSP Michael Marra wants to call in the country’s top public spending watchdog, claiming it’s not clear the authority has the “expertise or capacity” to properly address concerns engulfing its Construction Services department.
We revealed on Wednesday that the procurator fiscal will take no further action in relation to three men linked to a major bribery and corruption probe.
It comes after an investigation by The Courier revealed two senior members of staff attended a golf trip on the Spanish coast organised by an electrical firm just weeks after it was awarded a lucrative council contract.
‘No proceedings’ over trip
We uncovered how head of construction Mark Ross attended a so-called “customer event” with colleague Kenny Muir, after his department subcontracted the deal to Edmundson Electrical, with no other companies being given the chance to bid.
The procurator fiscal confirmed there will be “no proceedings taken at this time” against Mr Ross, Mr Muir and Kevin McIntyre, the Edmundson employee involved in arranging the trip.
But almost three years after The Courier first exposed the scandal, council bosses still refuse to say what action they have taken or how much public money – if any – was wasted on the deal.
MSP asks for reassurances
In his letter to auditor general Stephen Boyle, Mr Marra said the situation – along with a number of others within the Construction Services division – “calls into question the governance and control measures currently in place”.
The Dundee-based MSP asked whether Audit Scotland would consider engaging with the council to ensure “proper processes are in place to protect citizens”.
Mr Marra wrote: “Quite simply, if senior staff feel able to accept significant gifts and holidays from contractors with impunity, there is a continued risk of serious corruption within the service.”
He questioned whether Mr Boyle has seen evidence of council officers seeking to strengthen controls “in light of the rolling scandals” and if he is confident concerns are being handled “with an appropriate level of transparency to ensure public confidence”.
‘Mired in controversy’
Speaking to The Courier, Mr Marra said: “The Construction Services division has been mired in controversy for years now with allegations, resignations and criminal investigations critically undermining public trust in the council and the work it does.
“The recent decision of the procurator fiscal to not pursue the case means Dundee City Council has an opportunity to answer the questions that have dogged the division and provide the public with the reassurance it needs.
“They should publish, immediately and publicly, a full recounting of the problems that have occurred, acknowledge where the council’s processes have failed and outline in detail what steps they are taking to prevent similar problems in the future.”
An Audit Scotland spokeswoman confirmed the organisation is currently considering the concerns raised by Mr Marra.
She said it is aware of the issues at Dundee City Council but was “unable to comment on them during the period of the ongoing police investigation”.
The spokeswoman added: “The external auditors will now consider this, and any wider issues relating to it, as part of their 2022/23 external audit activity.”
Dundee City Council was given the opportunity to comment on Mr Marra’s letter and his comments but instead re-issued a previous statement.
It said: “A full report will be made available to elected members in due course.”