Damning report on housing services
A DAMNING report has highlighted serious problems in Newham Council's Housing Service - including breaches of its procurement code of practice and EU law in officers' use of private housing.
Solicitor Amanda Kelly was commissioned by the Town Hall to carry out an investigation - sparked by an anonymous letter to East Ham MP Stephen Timms in March.
Ms Kelly was asked to look into claims including allegations of financial or other improper relationships between council staff and contractors.
Her report found poor administration and documentation in the division, and preferential treatment given to certain letting agencies.
A lack of control and poor value for money, a lack of competence and understanding of core processes, a high risk of loss and fraud to the council and a risk of the perception of corruption were among the independent review's other findings.
The Town Hall pointed out that Ms Kelly's investigation found no evidence of corruption between council officers and external agents who provide private sector leasing (PSL) accommodation.
The report found that in 2003, Newham Council leased 200 PSL properties, but in three years the figure has mushroomed to 5,547.
It states: "The portfolio of 5,547 properties clearly requires more management than when the council only had 200 properties.
"It does not appear as if enough thought and planning went into this expansion, nor that, even now, the necessary controls are in place to manage the volume of PSL properties effectively."
Prior to Ms Kelly's involvement, the Town Hall's own internal audit discovered that one person, who had a block contract with the council for bed and breakfast hotels, was receiving £10,000 per night from the authority - a rate between ten and 50 per cent above the Greater London Authority recommended hotel prices. The council even had to pay for accommodation not used.
The investigation also found one company supplied more than 26 per cent of the council's PSL property.
Source: Newham Recorder (02/01/2007)
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