WALTHAM FOREST: Confusion reigns over poor fund 'cohesion' spending (From East London and West Essex Guardian Series)

WALTHAM FOREST: Confusion reigns over poor fund 'cohesion' spending

3:20pm Wednesday 22nd October 2008 in

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THOUSANDS of pounds of taxpayers' money earmarked to help the poor were used to pay a communications consultant, it has emerged.

Details released under the Freedom of Information Act appear to show Kevin Wilson was paid £66,011 from the Better Neighbourhood Initiative (BNI) fund for a four-month stint in the council’s communications department.

The document is one of nine found in a disorganised BNI file marked ‘community cohesion’, which reflects the long-term chaos that characterised the council’s management of millions of pounds of regeneration funds.

The projects were not included in the council’s anti fraud investigations, despite there being no evidence that the large contracts were properly signed off, monitored or audited.

Mr Wilson says he was paid only £6,600, through his company Heaton Wilson Communications, for four months work.

The council say the discrepancy in the figures is down to a misplaced comma and an extra digit being recorded by accountants working for consultants PricewaterhousCoopers (PwC).

New chief executive Andrew Kilburn recently insisted that “there was a clear process of accountability in relation to the allocation of funding”.

The documents give an insight into how the council’s One Community campaign, which was quickly launched in the wake of the terrorism arrests in August 2006, was paid for.

One document reveals a one-day conference cost the taxpayer £480 for each of the 50 people who attended.

The event for teachers in March 2008, which cost £26,000 from the BNI fund, was managed by community cohesion advisor Munir Zamir.

It cost taxpayers £3,100 for the venue and refreshments, £6,000 for guest speakers, £3,000 for marketing and 3,000 for what is described as ‘QA’.

A BNI contract worth £34,000, which was for the promotion of the One Community campaign shows taxpayers footed the bill for £12,000 worth of advertising on buses and nearly £3,000 for badges.

The payment for activities in 2006 was authorised in January 2007, raising fears that it may have been factored into two budgets, or “double counted”.

Leyton MP Harry Cohen has joined the calls for an independent inquiry into the widespread failure to manage the Neighbourhood Renewal Fund (NRF) in Waltham Forest, which financed BNI.

In a letter to communities secretary Hazel Blears, he said: “I remain unconvinced that (the council) is introducing sufficient administrative and, managerial and audit reforms to ensure the necessary regeneration outcomes are achieved.”

Mr Cohen says the government’s position, which is that the council remains responsible for "accountability arrangements", is not “anywhere near sufficient in these circumstances”.

A council spokesman said: “All of the projects mentioned were delivered through the proper procurement processes or through existing contractual framework agreements.

“Waltham Forest Council believes that helping to prevent our young people from turning to violent extremism is one of our most important roles.

“We are very proud of the work which we do with the police, our community and our schools on this issue.

“The Council is confident that this work is not only value for money, but an investment in the borough’s future.”

Nick Tiratsoo, whose research uncovered many of the failings over BNI, says the apparent mistake by the PWC auditors is cause for grave concern.

He said: "If the Council is seriously stating that one of PwC's costings figures is erroneous by a magnitude of ten, and that '£66,011' should in fact read '£6601', then it must answer the following questions: How many other figures in the report are wrong? Why was tens of thousands of pounds paid out for a piece of work that it so badly flawed?

"Indeed, what is the point of the report at all if it cannot stand up to reasonable scrutiny?

"More broadly, the total confusion about what was, or was not, spent on community cohesion projects once again underlines the urgent need for an independent inquiry into the BNI."

The police are currently investigating allegations that EduAction, the company which used to run education in the borough, used NRF funds to boost profits.

No arrests have been made.

Council leader Clyde Loakes was chair of the Local Strategic Partnership, which is the accountable body for BNI/NRF, when the mismanagement was taking place.

He has refused to accept any responsiblility for the failings despite being notified of concerns as early as 2004.

In an email seen by the Guardian, he admitted approving BNI cohesion projects "following the production of appropriate paperwork for each project and detailed discussions with officers".