Unionists move to block ‘forensic audit’ of council amid financial crisis

The council had been due to strike its annual rate last week but the decision was postponed.

Councillors instead agreed to appoint the Chartered Institute of Public Finance and Accountancy to provide “immediate and urgent assistance with the current rate setting process”.

This comes amid a serious financial crisis facing the council.

The council’s borrowing stands at more than £70 million.

Officials estimated last week that increases of either 10.08% or 13.51% were needed on the money raised through rates.

An SDLP motion calling for a “forensic audit” was also passed.

But a group of councillors has now moved to block the audit through a legal mechanism known as a ‘call-in’.

UUP councillor William McCandless is one of those who signed the ‘call-in’ of the audit.

Mr McCandless said: “We’ve got to consider the morale of the council staff when something like that takes place.

“Our own council auditors have come in and given the accounts a clean bill of health. We’ve had PwC (Price Waterhouse Coopers) in to do an audit and they have made some comments where items need to be correct. Steps are being made to do that and PwC will actually be back in again.

“We’re now going to have the Chartered Institute of Public Finances and Accounts.”

He added: “I would see it as a waste of ratepayers’ money to arrive at the same conclusion.”

The SDLP group leader, Margaret-Anne McKillop, responding to news of the ‘call-in’, said: “We are disappointed that our motion calling for the appointment of independent consultants specialising in management assessment and an independent audit has been called in.

“The harsh reality is that this council is at financial breaking point and is quickly losing the trust of the public.”

The SDLP councillor continued: “Ratepayers expect the council to be dealing with this crisis.

“We cannot understand why some members are determined to block our decision to call in the experts. What are they afraid of?”

A total of six councillors signed the call-in — the UUP’s Norman Hillis, William McCandless and Joan Baird; the DUP’s George Duddy and Michelle Knight-McQuillan; and the PUP’s Russell Watton.

The SDLP motion, which was approved by councillors on February 4, read: “That this council agrees to appoint independent consultants specialising in management assessment and takes immediate steps to advertise, interview and appoint a fully external independent forensic auditor.

“Such consultants to prepare an independent report and present to council within three months.

“This review will look at performance review and measures, at every level of the organisation a root and branch review, in the interests of transparency and public confidence.”

The call-in document which seeks to overturn that motion states that it was “introduced without prior consultation with parties and therefore the decision was not thoroughly debated and discussed over an appropriate time period through the relevant committee structures”.

It adds that the decision was “so major and affecting all levels of employees of the council and was taken without any HR or employment law advice and therefore could have major financial and HR implications.”

The council is expected to strike its annual rate tonight