Town criticised for running 'banana republic'

12:29pm Thursday 24th May 2007

A town council which awarded a contract illegally and mislead its elected members over the affair has been likened to a "banana republic".

An investigation by Crowborough Town Council's auditors has revealed that financial regulations were out-of-date and that two versions were in circulation.

The report by auditor Mazars was sparked after a complaint by a member of the public following questions raised by town councillor Tim Tyler, who has now stepped down.

Contracts for printing 10,000 copies of the council's five-year plan and work from architects on a community centre were investigated.

Mazars concluded the town clerk Linda Butcher had agreed to print the copies for more than £5,000 without approval from the finance committee and that a written response to Mr Tyler, which claimed the contrary, was misleading.

The investigation concedes that discussions had been held regarding the work but that no written approval was given.

As the contract was above a £5,000 limit it should have been put out for tender.

Mr Tyler had questioned the town clerk regarding her actions and was told, in writing, that the contract was split in two and therefore didn't reached the threshold. This was also ruled to be misleading.

The auditors concluded that the payment to JAC Design & Print was illegal but that the matter would not be taken to court because it involved such a small sum of money.

Mazars also found that two contracts for £5,000, £1 below the level which sparks the tendering process, were handed out to Peter Taylor Associates for architectural work.

The report concluded that there had been no breach of financial regulations but "there is no evidence to demonstrate how the town clerk satisfied herself that the transaction represented value for money or that the reasons for appointing the firm were reported back formally to the council".

Mr Tyler said the council was being made to look like a banana republic.

He said: "An important role that councillors play is the scrutiny of council's actions.

"This means that they should raise questions over decisions made not just by other councillors but also the actions of the council's employees.

"Many councillors have been berated in the past for the questions that they have raised, indeed Crowborough Town Council has often been the subject of many a report criticising the role that some of its members play.

"Where does the publication of this report leave Crowborough Town Council?

"The report's own recommendations point towards the tightening of procedures, yet I personally feel that this does not fully address the problem.

"I look forward to seeing what action the Council decides to take."

Green town councillor Julian Salmon said: "Something like this report can do the council no good."

The town clerk said it would be inappropriate for her to comment before councillors discussed the matter on June 5.