The Scrutiny Committee consider an external investigation into the Council’s handling of this matter, including the processes followed, from its inception to the current date. (minute 76, Scrutiny Committee, 13 February 2023)
Minutes:
The Scrutiny Committee considered an external investigation into the Council’s handling of 3 Rivers Developments Ltd of this matter, including the processes followed, from its inception to the current date. (Minute 76, Scrutiny Committee, 13 February 2023).
The Deputy Chief Executive (S151) brought the Committee up to date since previous discussions.
The Committee had previously spoken about a review or external investigation but hadn’t indicated what the scope of that investigation or review ought to be.
Full Council had agreed to investigate and look into 3 Rivers. This had gone back to Cabinet as a recommendation and Cabinet had since asked the Deputy Chief Executive (S151) to scope up the terms of reference of an external investigation and also to look into the kinds of bodies that could perform that piece of work for the Council. That work was in hand.
The format of that review was for future options for the company to be considered through an options appraisal investigation.
There were seven or eight large private sector companies that would be interested in that kind of work and the Deputy Chief Executive (S151) would go through a procurement process to secure that piece of work for the Council. In addition, the Deputy Chief Executive (S151) had commissioned a review by Devon Audit Partnership into some of the allegations of fraud and financial mismanagement by the company or the Council that had been put forward over the last few months. That commission would start by 27 April 2023.
The Deputy Chief Executive (S151) advised that a third review without a clear scope would be excessive – but welcomed comments from the Scrutiny Committee on either review due to take place.
It was explained that one review focussed on what the Council could do with the company moving forward, and the other one was looking to either substantiate or not, some of the allegations that have been made about the company and its Officers moving forward. Those were already two quite substantial commissions, to go for a third review would need to be financially reviewed in terms of value for money and risk.
The following was discussed:
The Deputy Chief Executive (S151) advice was welcomed, that the Scrutiny Committee should wait to review the two incoming investigations prior to a third investigation. It was important that the Council had an external analysis from someone with no affiliation for the sake of transparency and openness. It would also help to qualm the fears, allegations and stories that have been going around about (a) the company and (b) the Council.
Concerns were raised that the review was only looking forward and that a number of people would like to know what had gone on in the past. Any review needed to look at the whole 3 Rivers history,
In order to protect the budget, Councillors thought it best to go ahead with the two pieces of work the Deputy Chief Executive (S151) had outlined and see what comes back before commissioning a third report. Concerns were raised that the reports would not be commissioned by the end of this term, clearly the reports would not be back by then.
It was suggested that this matter be clearly marked on the new work programme for review by the new administration.
It was therefore RESOLVED that:
The Scrutiny Committee await the receipt of both reports and then it be brought back to the Scrutiny Committee to review the position further at that point.
(Proposed by Cllr F Letch, seconded by Cllr S Pugh)