Calls for ‘forensic’ probe into financial crisis at City Council
Gloucester City Council’s opposition has united to call for a forensic investigation into the authority’s ongoing financial crisis.
Conservative, Labour and Independent group leaders are calling for independent accountants in an open letter to look into the reasons that led to the council needing a £15.5m emergency loan from the Government.
The calls for “full transparency” come after initial calls for the probe were dismissed at the last council meeting.
Liberal Democrat leaders told the meeting such an exercise would cost around £200,000 and would duplicate some of the work already carried out.
But Conservative, Labour and Independent councillors believe the work is essential to restore trust in the authority.
“Opposition leaders have stressed the need for full transparency and proper management of public funds. Residents and businesses are also set to suffer service cuts, increased fees, and higher council tax,” the open letter reads.
It goes on to say they are disppointed after requests from the overview and scrutiny committee have not been taken up.
“We are disappointed that you are making every effort to avoid completing this essential work needed to restore public trust,” the letter continues.
“We are once again making a plea for you to urgently procure, within the council’s procurement rules, select independent, qualified forensic accountants, as requested by the cross-party Overview and Scrutiny Committee, and in accordance with the original resolutions put forward by the Independent Party along with proposals from both the Conservative and Labour Groups.
“We consider this work to be essential and believe it should be managed with careful attention to cost, timing, and independence.
“You have not provided any evidence to support your claim that the expense is excessive or unnecessary.
“It is unacceptable for the Liberal Democrats to do this work in-house, particularly given the high stakes and the public’s demand for impartial scrutiny.
“Residents, businesses, and the voluntary sector want to know exactly what has led to this crisis at Gloucester City Council, and this level of transparency can only be achieved through a thorough independent forensic analysis.
“We further ask that all findings be published in their entirety and promptly presented to full council at a public special council meeting, without delay.
“This matter is of significant public importance, which is why we are publishing this open letter.
“Our request reflects both professional advice we have received and strong concerns from local residents and businesses seeking transparency and accountability.”
Council leader Jeremy Hilton (LD, Kingsholm and Wotton) told the meeting on January 27 that his administration had already carried out “forensic testing” of the accounts going back to 2021.
He said there were two published reports explaining the authority’s current financial situation.
“The Liberal Democrats have done some superb detective work,” he said. “We employed a new finance officer who has gone through the accounts back to 2021.
“We’ve had the support of Chartered Institute of Public Finance and Accountancy (CIPFA), we’ve had Ernst and Young as new auditors who have gone through it forensically.
“And we presented two reports, one in September and the final one in December giving what the financial situation of this council is.
“For the first time in five years we’ve got an accurate assessment.”
Deputy leader Declan WIlson (LD, Hucclecote) said the term “forensic accounts” was a strange term that he had never heard of despite working in the industry for decades.
He said the fees paid to the council’s normal auditors is around £200,000 for one year and he expected it would cost more for “forensic” accountants.