An external investigation into Liverpool Council requested by its own auditors is expected to issue its first stage report within the next six weeks.
Law firm TLT LLP has been tasked with leading a scope into the local authority’s records to establish whether there is any evidence of “improper influence in the council’s decision making arising from the actions of the former Mayor and former senior officers.” The investigation was requested by Liverpool Council’s auditors Grant Thornton who said they cannot sign off on books for 2019/20 until it had taken place.
A meeting of the authority’s audit committee heard a contract was confirmed with TLT, headquartered in Bristol, on May 23 and a technical team is now collating data to form the basis of its probe. Partner Jason Cropper said the first stage of the report should be completed “in four to six weeks”.
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Earlier this year, Grant Thornton said the books would not be signed off at the Cunard Building until it knew whether problems that have dogged the authority were limited to “a particular area in the council or whether the issues are more pervasive.” The two stage investigation will initially look to obtain and perform “a structured review of the correspondence and other communications data of key decision-making personnel, including heads of departments and senior managers (and those known to be subject to police investigation) to identify indications of the improper exertion of influence of decision-making processes.”
The role of key management in decision making as well as key areas of risk or opportunity to exert pressure or influence in the decision making process will also come under scrutiny. According to the scope of the investigation, seen by the LDRS, the first phase report will set out any findings of evidence of heightened risk of improper management or political override of controls, an opinion on the risks of fraud, bribery, and corruption etc during the period of review” and any substantive evidence of incidents of unlawful expenditure.”
Based on those findings, a targeted inquiry will be launched in the second phase “into areas/transactions of heightened risk of manipulation” which the scope expects to include delegated authority and procurement process decisions, peppercorn disposals, interviews with key individuals and transactions involving key elements of management. The findings of the second phase will go towards a report documenting any further findings and recommendations in enhancement of, or supplementary to those reported previously and further evidence on any potential items of substantive unlawful expenditure.
No timescale has been set for the publication of the phase two findings. Alongside the review requested by its auditors, Liverpool Council is also seeking to appoint a new chief internal audit officer, chief procurement officer and strategic director of finance and resources as it seeks to turn its fortunes around following a series of expensive errors.
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