Liverpool Council has published a breakdown of its response to recommendations made in light of reports into controversial match day car parks.
In October last year, the city council released historical internal audit reports which looked at the operation of car parks by the Beautiful Ideas Company (BICo). BICo was a Community Interest Company with links to a number of city councillors. It was launched in 2014 to manage matchday car parks in north Liverpool used by Liverpool and Everton fans.
The revenue was to be used to help the community. Three Labour councillors were linked to BICo in the past. One acted as a director from 2014 to 2018 and two were advisors.
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Owing to a lack of evidence, they were cleared of any wrongdoing by city solicitor Dan Fenwick. The publication of the reports followed a decision by the Information Commissioner’s Office which ruled it was in the public interest to disclose the documents.
New reports have shown how the council has responded to a series of recommendations made in the released 2018/19 internal audit report. It found how “the governance and monitoring relationship between the Authority and the BICo was limited.”
Liverpool Council has now said in response to this, it will “ensure that there are sufficient governance and monitoring arrangements in place for any such future relationships.” The actions were released ahead of the matter being discussed at the authority’s strategic development and housing committee next week.
One of the findings said there was “no specific clauses or requirements in any of the agreements between the council and BICo regarding neither the nature nor the criteria to be applied to recipients of awards/ investments, reducing the council’s control and/ or influence of the management of generated funds.” In response, the authority has vowed to ensure that there are sufficient obligations and clauses in any agreements between itself and third parties, including community organisations, in future.
In the 2018/19 report, a medium priority was listed as addressing how income earned from use of the former Four Oaks Primary Site had not yet been invested in social enterprises by BICo as agreed with the city council in July 2015. The new documents said following receipt of legal advice, the council had been informed how surplus funds in a community interest company must be transferred to a “similar organisation” upon it being wound up.
The report added: “The council is therefore not in a position to reclaim such funds.” It added how going forward when awarding or investing money, Liverpool Council will ensure “any agreements between the council and third parties take into account any specific legal or regulatory obligations relating to the assets of relevant organisations, including Community Interest Companies.”
The internal audit findings highlighted in 2018/19 how there had been no plan in place for the operation of the site post-handover, “including whether it was a potential income generating opportunity.” Moving forward, the city council said it will “ensure it undertakes a thorough options appraisal of such sites.”
The response will be debated by councillors at Liverpool Town Hall next Thursday.
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