Waltham Forest Council paid £50,000 to private company North London Ltd but cannot say why

East London and West Essex Guardian Series: The council paid £50,000 to support Leytonstone's One Stop Shop in 2011, but new information shows the authority does not know what happened to the cash. The council paid £50,000 to support Leytonstone's One Stop Shop in 2011, but new information shows the authority does not know what happened to the cash.

Waltham Forest council paid a private company £50,000 but cannot say why or how it was spent, it has been revealed.

The payment, made in 2011, was “to provide project support as instructed by Waltham Forest Council”, according to the invoice obtained last week seen by the Guardian.

The money was given to the Waltham Forest Business Community Interest Company (CIC) on March 8 2011 to support the One Stop Shop in Leytonstone High Road.

Rather than being paid to the Leytonstone Business Forum CIC, which operated the shop, or its parent company, the now-troubled E11 Business Improvement District (BID) Company, it was paid to North London Ltd – the board of which featured Michael Polledri, now chairman of the Waltham Forest Business Board, as director.

Last week a freedom of information request confirmed that the authority did not have any information about the services the money was used on, or when they started and ended.

The payment came around two months before the Leytonstone Business Forum CIC was struck off on May 17 – raising questions about why the money was paid to support a project of a company that was near collapse.

The company’s invoice states only that it was instructed to ask for the money by the council.

This is not the first time the council has said it is unable to track how money it paid organisations has been spent.

Earlier this year more information obtained through freedom of information requests showed that the council gave £421,000 to an organisation representing private businesses without a formal agreement in place.

A large portion of the money was given to the E11 Bid Company, which was established to support businesses in Leytonstone and is now the subject of a police fraud investigation.

The council claims this money was allocated in line with the government requirements for a non-ring fenced grant, but it has not provided the Guardian with the relevant documents.

The authority was previously found to have mismanaged millions of pounds of taxpayers' money after an independent panel found rules to prevent fraud were regularly ignored. 

Comments (11)

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4:05pm Mon 14 Apr 14

cynicalsue says...

Unbelievable. No hang on, it's LB Waltham Forest. Believable.
Unbelievable. No hang on, it's LB Waltham Forest. Believable. cynicalsue
  • Score: 38

4:08pm Mon 14 Apr 14

Howard Wolowitz says...

It is getting worse by the day.
It is getting worse by the day. Howard Wolowitz
  • Score: 28

5:10pm Mon 14 Apr 14

Villagecranberry says...

Yet another example of Labour total incompetence, so much public money that they do not know what to do with it and lose 50k before you can shout 'Loakes is an idiot'.

Of course the people of Waltham Forest voting Labour will make usual lefty allowances and vote this sham loci council back in again.
Yet another example of Labour total incompetence, so much public money that they do not know what to do with it and lose 50k before you can shout 'Loakes is an idiot'. Of course the people of Waltham Forest voting Labour will make usual lefty allowances and vote this sham loci council back in again. Villagecranberry
  • Score: -4

9:12pm Mon 14 Apr 14

bin yaqub says...

Is it just our council or are they all like this? Day after day I read about WFC on this website. None of it good. I think we deserve better than this. The council needs to be transformed into something fit for purpose. The quality of the members that we get are an insult to each and every one of us. I have not voted for a councilor in years. Why not? They were not my idea of good material. If I wouldn't employ them why would I vote for them?
I don't have 'an answer' to the problem, but I feel the effects of it. This council is not fit for purpose.
Is it just our council or are they all like this? Day after day I read about WFC on this website. None of it good. I think we deserve better than this. The council needs to be transformed into something fit for purpose. The quality of the members that we get are an insult to each and every one of us. I have not voted for a councilor in years. Why not? They were not my idea of good material. If I wouldn't employ them why would I vote for them? I don't have 'an answer' to the problem, but I feel the effects of it. This council is not fit for purpose. bin yaqub
  • Score: 31

10:12pm Mon 14 Apr 14

Don't Give Up says...

If ever there is a racing certainty, it is that there will be absolutely nothing about this total fiasco in the very " prim, proper and of course independent" Waltham Forest News.
Also, to expect either a councillor, anyone from the council hierarchy or Mr Polledri to respond in any way will be out of the question.
If ever there is a racing certainty, it is that there will be absolutely nothing about this total fiasco in the very " prim, proper and of course independent" Waltham Forest News. Also, to expect either a councillor, anyone from the council hierarchy or Mr Polledri to respond in any way will be out of the question. Don't Give Up
  • Score: 24

11:25am Tue 15 Apr 14

faro0485 says...

cynicalsue wrote:
Unbelievable. No hang on, it's LB Waltham Forest. Believable.
Why don't you people join ukip and get this borough sorted out and show the country that Waltham Forest is part of the UK. Some of you folk sound like you should be as councillors.

They are only coting labour because they think labour loves them, it doesn't.
[quote][p][bold]cynicalsue[/bold] wrote: Unbelievable. No hang on, it's LB Waltham Forest. Believable.[/p][/quote]Why don't you people join ukip and get this borough sorted out and show the country that Waltham Forest is part of the UK. Some of you folk sound like you should be as councillors. They are only coting labour because they think labour loves them, it doesn't. faro0485
  • Score: 2

5:42pm Tue 15 Apr 14

VillageIdiot69 says...

I would so love to say I'm surprised but sadly, I'm not.
I would so love to say I'm surprised but sadly, I'm not. VillageIdiot69
  • Score: 7

6:10pm Tue 15 Apr 14

fabster says...

Just want to say well done Zac and the team for some proper investigative journalism here, asking some serious questions that need to be asked, especially in the run up to the May elections. Thank you.
Just want to say well done Zac and the team for some proper investigative journalism here, asking some serious questions that need to be asked, especially in the run up to the May elections. Thank you. fabster
  • Score: 14

9:55pm Tue 15 Apr 14

Villagecranberry says...

fabster wrote:
Just want to say well done Zac and the team for some proper investigative journalism here, asking some serious questions that need to be asked, especially in the run up to the May elections. Thank you.
Crawler.
[quote][p][bold]fabster[/bold] wrote: Just want to say well done Zac and the team for some proper investigative journalism here, asking some serious questions that need to be asked, especially in the run up to the May elections. Thank you.[/p][/quote]Crawler. Villagecranberry
  • Score: -10

11:19am Wed 16 Apr 14

BruceStroganov says...

forget answers mate, i want action.....time after time this council is caught out engaging in underhand dealings, money going missing, not accounted for, going to companies who's directors are mates of councillers and so on, financial records on public money are meant to be archived for at least 7 years (i think) yet all we get fobbed off with is 'we cant find them', 'theres asbestos in the basement' etc etc.....its all **** but these people are untouchable, i know in my job if i 'lost' my financial records id be sacked and quite possibly face a police investigation. councils, mp's, politicians up and down the land are two faced imbeciles who couldnt run a bath. i mean im not niave enought to believe that all tax-payers money will be spent on useful things but to at least know where its going would be a start, sod your thieving Romanians, these people are much bigger crooks in my eyes (until they can prove otherwise)......gawd its bloomin frustrating
forget answers mate, i want action.....time after time this council is caught out engaging in underhand dealings, money going missing, not accounted for, going to companies who's directors are mates of councillers and so on, financial records on public money are meant to be archived for at least 7 years (i think) yet all we get fobbed off with is 'we cant find them', 'theres asbestos in the basement' etc etc.....its all **** but these people are untouchable, i know in my job if i 'lost' my financial records id be sacked and quite possibly face a police investigation. councils, mp's, politicians up and down the land are two faced imbeciles who couldnt run a bath. i mean im not niave enought to believe that all tax-payers money will be spent on useful things but to at least know where its going would be a start, sod your thieving Romanians, these people are much bigger crooks in my eyes (until they can prove otherwise)......gawd its bloomin frustrating BruceStroganov
  • Score: 9

7:32pm Wed 16 Apr 14

Techno3 says...

The more I learn out about Waltham Forest Council and the 'businessmen' it prefers to do 'business' with, the more I am reminded of the relationship between the local government in Naples and the mafia.
The more I learn out about Waltham Forest Council and the 'businessmen' it prefers to do 'business' with, the more I am reminded of the relationship between the local government in Naples and the mafia. Techno3
  • Score: 9

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