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News and Comment December 2019

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10 December (Part 3) - Newham’s financial woes. Bexley next?

Rokhsana FiazFunny things go on in my second home across the river, Newham is a bit of a dump and I try not to be there after dark. The current Mayor Rokhsana Fiaz was elected in 2018 to clean the place up after Sir Robin Wales’ 16 years in office.

Newham Council is the major partner in oneSource, the three borough consortium that is supposed to save Bexley money. In the year before Rokhsana’s election a lot of money, reported to be £7·5 million, went unaccounted for at oneSource. Whatever it was, the auditors spotted the discrepancy and Newham’s new broom Mayor asked The Chartered Institute of Public Finance and Accountancy (CIPFA) to look into its accounts. The CIPFA report is here. (PDF)

Paul Thorogood was associated with Newham Council from January 2013 until December 2018 being Director of Finance for the final two years - the period covered by the CIPFA report. It was Paul Thorogood who oversaw Newham and oneSource’s financial affairs during that critical period, the same Paul Thorogood who has been in charge of Bexley’s finances since this time last year.

CIPFA said that during 2017 and 2018 there was “a lack of clear vision” and “a lack of transparency on financial matters between members and officers. Savings targets were insufficiently planned”. There was “a lack of accurate profiling of Capital expenditure and a lack of delivery”.

CIPFA was not exactly complimentary about Newham’s high interest Lender Option Borrower Option loans either.

Just as in Barnet there were multi-million pound frauds, allegations of fraud and staff dismissals. Nearly £9 million of it in Newham. Councillors reported the matter to the police. More poor financial management?

It’s a pity that it took a new Mayor elected on a promise to drain Newham’s swamp to get on top of the money problems and not their Finance Director.

Bexley appears to have imported an architect of failure. One must hope that ‘Lessons have been Learned’.

 

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