Council's auditor admits that controversial solar investments were not checked out! Audit was simply a 'tick box process' as hundred of millions were borrowed and spent
By Neil Speight 28th Nov 2022
AHEAD of what is expected to be a bad news week for Thurrock Council as its financial failings continue to be investigated, some councillors have condemned the authority – which is saddled with a debt believed to approach one and a half billion pounds.
The message came after one of the council's senior officers admitted due diligence and checks about where hundreds of millions were spent did not happen
In recent days Thurrock Nub News has reported on the likely outcome of a number of meetings where councillors will be briefed on the extent financial catastrophe due to be reported.
Sources within the council have told Nub News that investigations into the failed 'borrow to invest' policy have shown things are far worse than originally expected.
Having already had to borrow more than £650 million to cover debt to other local authorities and public bodies it is likely they will be going cap-in-hand to the government to meet a shortfall in this year's budget that could be as high as £490 million.
An internal audit progress report was given to councillors on the standards and audit committee whose members were critical, saying it lacked detail at a time when the council's financial dealings should be under great scrutiny.
Conservative councillor Gary Collins chaired the meeting and said: "What I'd like to see in light of recent developments is not just "this is what we do", it needs to be evidenced. I would like to see bank statements showing all the balances of all our accounts. A detailed account of all our incomes and outgoings and any other items relating to investments.
"I think it might be a bit like shutting the stable door after the horse has bolted but if we are going to learn from our mistakes this is probably the best way to go.
"Does anyone go out to see if these investments and see if they actually exist in reality?"
In response the council's chief internal auditor Gary Clifford told the meeting: "No, we wouldn't go out to see if the investment existed. We haven't done any work on the investments. We would only audit the process if the council goes out and does due diligence."
Mr Clifford told the meeting that his auditing team were told not to carry out checks by the council's senior finance team. "I would have assumed this was done by the financial team when the audits were set up," he said, conceding: "We would't go out and check if the investments were a reality."
Asked by Cllr Collins if Mr Clifford's team had carried out the checks that might be expected of a team of auditors, Mr Clifford said: " We audited the process. I don't see what else we could do!"
Cllr Collins responded by saying: "There's got to be a way of checking whether the audit has been done and not just taking it at face value."
A government-appointed commissioner from Essex County Council is overseeing the authority in the aftermath of millions of pounds lost in the ill-judged investments.
The committee deferred signing off the report until the next standards and audit committee so that more detail could be added to it.
However, that deadline may well be massively overtaken by events about to unfold…
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