Allegations of Financial Mismanagement Dog Labour Council

10.44.37am GMT Fri 29th Sep 2006

Labour-run Haringey Council is facing ongoing investigations into allegations of financial mismanagement, it was confirmed this week. At a Council committee meeting, councillors heard how the investigations have resulted in the refusal of the Audit Commission, an independent body which scrutinises local government, to sign off the Council's financial accounts this year.

The General Purposes committee heard how the Commission had concerns over the financial dealings involved in both the Mortuary Service and The Bridge New Deal for Communities (NDC) project, a £50 million regeneration project in Tottenham.

Liberal Democrat Deputy Leader Councillor Wayne Hoban has been looking into serious allegations made by many local residents over the fact that the multi-million pound project has never had independently audited accounts. Cllr Hoban wrote to Haringey Council in December 2005 asking for an urgent independent forensic investigation of the NDC accounts, but is still waiting for a decision.

Cllr. Hoban comments: "Although I was astonished to find that this £50 million project had not been properly audited in the past, I am even more concerned that my request for more information has not been met. I believe that an independent forensic investigation is needed into these matters."

Councillor Jonathan Bloch, who has been helping Cllr. Hoban with his investigations, adds: "This comes hot on the heels of Labour's disastrous management of the Tech Refresh project which resulted in an incredible £13 million overspend. It is all too clear that Labour are incapable of managing the finances of this borough."

ENDS

Notes to editors:

The Audit Commission is an independent body which oversees the audits of the Council's financial accounts. External audit is an essential element in the process of accountability for public money and makes an important contribution to the stewardship of public resources and the corporate governance of public services.

For a copy of the report into Haringey's accounts, please visit: http://www.minutes.haringey.gov.uk/Published/C00000141/M00001917/AI00004792/GP20060925AgendaItem07AnnualGovernanceReportAppendix.pdf