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04/04/2014
Inspectors Appointed For Tower Hamlets
The Secretary of State for Communities and Local Government, Eric Pickles, has appointed inspectors to look into allegations of governance failure, poor financial management and fraud at the London Borough of Tower Hamlets.
Serious concerns have been raised following the receipt of certain documents.
Using new laws that came into effect today the Secretary of State, acting in the public interest, has exercised his legal power today to appoint PricewaterhouseCoopers LLP to carry out an inspection of the council. A file is being passed onto the Metropolitan Police for consideration.
The PricewaterhouseCoopers inspection will look into evidence of the authority's payment of grants, the transfer of property, spending decisions in relation to publicity, and other contractual processes from 25 October 2010 to the present day.
Mr Pickles said: "It is a matter of public record that I have long been concerned about a worrying pattern of divisive community politics and alleged mismanagement of public money by the mayoral administration in Tower Hamlets.
"Following the receipt of a number of documents, I am now taking legal steps, in the public interest, to appoint inspectors to look into the allegations in respect of Tower Hamlets.
"I hope this sends a strong signal that robust processes are in place to investigate allegations of failures in financial management and governance in local government, under the new regime introduced by the Local Audit and Accountability Act which replaces the Audit Commission.
"This central action is not undertaken lightly, but localism requires local transparency, scrutiny and accountability, and these vital checks and balances must be upheld."
(CD)
Serious concerns have been raised following the receipt of certain documents.
Using new laws that came into effect today the Secretary of State, acting in the public interest, has exercised his legal power today to appoint PricewaterhouseCoopers LLP to carry out an inspection of the council. A file is being passed onto the Metropolitan Police for consideration.
The PricewaterhouseCoopers inspection will look into evidence of the authority's payment of grants, the transfer of property, spending decisions in relation to publicity, and other contractual processes from 25 October 2010 to the present day.
Mr Pickles said: "It is a matter of public record that I have long been concerned about a worrying pattern of divisive community politics and alleged mismanagement of public money by the mayoral administration in Tower Hamlets.
"Following the receipt of a number of documents, I am now taking legal steps, in the public interest, to appoint inspectors to look into the allegations in respect of Tower Hamlets.
"I hope this sends a strong signal that robust processes are in place to investigate allegations of failures in financial management and governance in local government, under the new regime introduced by the Local Audit and Accountability Act which replaces the Audit Commission.
"This central action is not undertaken lightly, but localism requires local transparency, scrutiny and accountability, and these vital checks and balances must be upheld."
(CD)
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