Investigation into Wirral business grant funding handed over to police (From Wirral Globe)
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Investigation into Wirral business grant funding handed over to police
POLICE have been handed the file of an investigation into allegations hundreds of thousands of pounds of public money - meant to help businesses and create jobs in Wirral - had been wasted.
POLICE have been handed the file of an investigation into allegations hundreds of thousands of pounds of public money - meant to help businesses and create jobs in Wirral - had been wasted.
The inquiry was commissioned last year by Wirral Council after whistleblowers raised the alarm.
Today sections of it have been handed over to Merseyside Police by town hall leader Cllr Phil Davies.
It is not clear at this point exactly why the leader has taken this extraordinary step.
The report is being kept under wraps for at least a fortnight while "fact-checking" is carried out.
Police say an allegation of fraud "invoving a company in Wirral" has been received.
Councillor Davies said the independent examination has cleared the council and its officers of any wrongdoing.
But he referred the report to both the Department of Business Innovation and Skills and police to investigate "other parties further."
The inquiry centres around the "BIG Fund" - Business Investment Grant - and another known as "ISUS" - Intensive Start-up Support.
The programmes were set up to help local firms through the recession and try to boost employment with grants of up to £20,000.
The BIG Fund was a council initiative to provide grants to small and medium sized business specifically for job creation.
The authority says that elements of the assessment for awarding these grants and the ISUS funding were contracted to an external supplier.
Concerns regarding grant applications were raised by two whistleblowers in 2010.
The whistleblowers said they had evidence some of the cash had been handed out to firms without proper checks being carried out.
One company was alleged to have received a £20,000 grant even though it was insolvent.
It is believed up to £800,000 of grants had been allocated.
The whistleblowers told the council there was “wide-scale systematic weaknesses” and “potential fraud” involving the applications.
A statement this morning from the council states that accountants Grant Thornton, now the authrority's external auditors, were contracted to review all the evidence, interview interested parties, and produce external and independent reports.
Those reports have now been received and the council says the section relating to the BIG Fund will not be commented on until a fact-checking exercise has been completed, which is likely to be within the next two weeks.
Councillor Phil Davies said: “I am pleased I am now in a position to state clearly that the ISUS report which has now been concluded does not criticise Wirral Council or its officers.
"I have referred the report to both the Department of Business Innovation and Skills and the police to investigate other parties further.
“However, we have been advised that due to action that may ensue we cannot comment any further at this time.”
A statement from Merseyside Police says they: "can confirm an allegation of fraud involving a company in Wirral has been received by the force.
"The matter has been referred to the force's Economic Crime Unit and enquiries are ongoing to establish if any criminal offence has been committed. However, it is too early to say if this is the case.
"At this stage no formal police investigation has been launched."
Comments(50)
Cheesy Peas
says...
10:22am Thu 14 Mar 13
woodyres2
says...
10:41am Thu 14 Mar 13
PaulCa
says...
12:05pm Thu 14 Mar 13
...as is customary in these situations? (see 4 week delay torrent of bluster from DASS Director)
Did the Council leader distance himself and his officers / councillors from ANY culpability... AND remind us how "robustly" the issues (whistleblowers) are dealt with when staff (troublemakers) spill the beans on endemic theft and corruption?
PeteSheff
says...
12:21pm Thu 14 Mar 13
Positive thinker
says...
12:28pm Thu 14 Mar 13
PaulCa
says...
1:34pm Thu 14 Mar 13
Too late... it looks like we've had some of the customary 'shenanigans'.
Some of the facts behind the headlines are laid out here by an insider:
http://tinyurl.com/c
wrxudl
RL 1952
says...
4:24pm Thu 14 Mar 13
The sooner commissioners are brought into Wirral the better as clearly senior officers and councillors are really incapable of ensuring that total integrity and transparency are at the forefront of all council dealings.
frank h
says...
5:42pm Thu 14 Mar 13
dave301bounty
says...
7:11pm Thu 14 Mar 13
Hugo1008
says...
8:49pm Thu 14 Mar 13
Remember folks it is you that vote for these parasites, it must be abundantly obvious that most of those who have been in office for any longer than three years, are and have been about as useful as a chocolate watch.
At each and every election opportunity "Pick a New Face" do not pick a candidate supported by any of the three main political parties, unless of course you are one of the very tiny number of members of that particular political party.
The vast majority of the electorate do not support any political party, but your rates are used to keep these political parasites in a very comfortable life style, but you get nothing in return other than lies, deceit, poor slack governance, mismanagement, misleading information, and copious lashings of white wash.
You deserve better, but you will not get it until you change your voting habits.
Mary Adair
says...
11:23pm Thu 14 Mar 13
Pull the cord on his chest and hear the reedy pre-recorded message - "“ The report does not criticise Wirral Council or its officers.....“ The report does not criticise Wirral Council or its officers...."
Whatever gets you through the night Phil. We are on to you.
andygt6
says...
12:09am Fri 15 Mar 13
Buisness grants which helps the living and future in hope,under fraud!!
There's a picture of the town hall on top of article,council!!
Anyone explain"it is not clear at this point exactly why the leader has taken this extrodinary step'.Davies and his poodles cant give an explanation to the person who wrote this!!
adding too that police investige'other parties futher'council involvement or not,perhaps??
Davies said 'cant comment any further'Whats he hiding?
Davies said 'please to say position to state clearly does not criticise WBC or officers' Previous comments say the council now washes its hands.job done!!
Is my understanding that the council are responsible for grants correct?
If the council innocent,why picture of town hall?
Positive thinker,Mr Davies been nominated for an oscar by djrimmer.good award,no slagging!!!its for hypcracy ,from wirral and mid staffs hospital article.
David Scott
says...
12:11am Fri 15 Mar 13
Growl Tiger
says...
9:45am Fri 15 Mar 13
Wouldn’t it be refreshing if WBC simply told us this information without someone having to put in a FOI request and wait 6 months for a misleading reply?
antisthenes
says...
9:46am Sat 16 Mar 13
In fact it took the persistence and perserverance of a courageous whistleblower to force this issue.
The Council intially shrugged off the whistleblowers concerns made over one year ago with their standard...no cause for concern..no case to answer...no evidence of council mismanagement brush off.
They have ducked and dived and dissembled for a whole year but now that the cowardly and cynical Davies can see the writing on the wall he has no option but to refer the matter for further investigation and then to spin things as if he is the Wild West Sherifft that is going to clean up this here town!
Davies et al once again asleep at the wheel; another utter failure of basic governance; no effective scruitiny, no challenge to senior oficers = zero accountability.
hobroW
says...
2:56pm Sat 16 Mar 13
I have requested that WBC amend its press statement on three grounds:-
1. The predecessor to ISUS whose auditors were A4e, was Working Neighbourhoods, was with ancillary projects of a quantum of in excess of 5m, ran for some 4 years , and was entirely supervised by the council officers. Though the released report is called the ISUS report it concerned also the working Neighbourhoods. I have asked the WBC to alter the notes to the press statement to include Working Neighbourhoods
2. The auditors explained to the two whistleblowers and one witness back in December 2012 that the scope of their investigation did not comprise the council officers and that reference to these persons would only be tangential
3. The notes refer to :small: grants to SMEs re the Big fund which I explained that I believed misleading as the grants were of 20K mostly and sometimes 10k.
These suggestions were put at a meeting we had on Thursday with council officers. I have had no reply to these important matters therefore I publish them in the interests of public clarity.
wirral democrat
says...
3:01pm Sat 16 Mar 13
hobroW
says...
3:10pm Sat 16 Mar 13
Due to pressure exerted on our behalf by Cllr Jones the new executive examined the report about to be submitted by internal audit and scrapped it as being indefensible in a public forum. Throughout the labour group has been supportive, and if action is slow, it is because the scenario is so unusual it stretches credulity and had to be checked by external auditors before Cllrs could risk reputations.Remember the cost of the investigation was 39k plus vat so it was a brave Cllr to recommend it.
I repeat I have no adverse comment to make of Mr Burgess, Mr Timmins or of Phil Davies . Press statements are crafted by Press officers , and information is precised to busy Councillors. Press officers do not necessarily understand the issues at stake so I am happy in the above comment to correct any omissions or oversights
wirral democrat
says...
8:33pm Sat 16 Mar 13
antisthenes
says...
9:13pm Sat 16 Mar 13
wirral democrat wrote:I see your point wirral democrat but the Council remains responsible for the oversight and control of all public spend under its management regardless of whether the service is contrated out to an external provider.
The point is this Council Leadership & Management dump their responsibilities on third parties and reduce staff creating a situation were there is no oversight or control on its operations. When someome exposes issues as in this case, they revert to pointing the finger at others but never themselves. It then goes quite until the next time this never ending "Circle" is costing more that is being save by the reduction in staff and with no good management pratice in place there can be no end to the problem.
Failure to detect irregularities is ultimately therfeore a failure of the Council's audit fuction.
In this instance it appears that they have once again utterly failed in their duty for had the whistleblower not taken a deep breath, pursed his lips and blown the siren whistle of truth then none of us would have been any the wiser.
In fact had he not kept blowing it for over a year the Council would deployed their habitual tactics of deny, dissemble, displace to deflect any accountability away from themselves.
Positive thinker
says...
9:56am Sun 17 Mar 13
wirral democrat
says...
10:57am Sun 17 Mar 13
hobroW
says...
1:46pm Sun 17 Mar 13
"
We believe there was an absence of control during Working Neighbourhoods 2005 to 2009. we believe that it was reckless without control to entrust asset transfer work, Community Enterprise work and BIG fund work to any small private company. What is at issue is also the quality of the work performed as well as any allegations of misfeasance.If you pay a sub-contractor #25,000 a week you need to reassure yourself of their competence specifically if it is public funds which are being disbursed in addition to the $25k weekly.Effectively the out-pipe may have been carrying $30-35k weekly. If you refer to the Audit and risk committee notes on WBC website you will see Internal audit placing great emphasis on Metro catering and councillor expenses but no work at all on checking a pipe carrying $35K a week! a case of Form over substance
wirral democrat
says...
3:14pm Sun 17 Mar 13
Moogos
says...
5:03pm Sun 17 Mar 13
When, importantly and skirted over, is that there are massive inadequacies in the internal audit department, there were major failings at WirralBiz and they then got rid of the internal audit guy on the sly with a huge payoff.
HobroW is correct, 25,000 per week being piped to a sub contractor with little regard for proper safeguards gets left on the sideline for 2 years, the internal auditor gets sacked and its a mountain to climb for the wistleblower with every object imaginable thrown down in his way.
At the same meeting Ron Abbey asked the auditor of the Merseyside Pension Fund whether an investment vehicle was some sort of taxi. unbelievable but true. This is the type of mentality the Wirral people have to deal with, this is the type of mentality that is ultimately making decisions for us.
Its no wonder the council officers can run rings around the councillors.
There is a renaisance happening in Wirral and the people that are looking at you (officers and councillors alike all the way to the top) will not let this continue. As you deflect and obfusctate we will expose...
hobroW
says...
6:40pm Sun 17 Mar 13
What is worrying is that, forgetting Internal audit's dismal failure to produce any meaningful investigation,(resea
rch events of September 2012),the council officers from Regeneration/Invest Wirral cleared themselves over the BIG fund , refused to discuss ISUS failings or Working Neighbourhoods failings at an interview with myself in July 2012. Subsequently , and I have the evidence, they refused anymore to engage with myself when I questioned the clearing of the BIG fund files. Be not deceived over this independent report for the council officers were excluded from forensic examination of their roles
hobroW
says...
6:53pm Sun 17 Mar 13
The officers also tamely accepted an implausible explanation for a series of errors made in tax returns for ISUS clients and this one month after refusing to speak to me on ISUS. In fact the officer knew she ought to have spoken to me but unfortunately the answers she would have received would not have been the ones she sought to hear.Over one year later and a further tax year and the chickens have come home to roost unfortunately for the ISUs clients! The latter is not a duty of care to vulnerable start-up businesses. How do i knowthe chickens are home to roost? Because I have rectified the mistakes leaving clients with automatic tax fines.
antisthenes
says...
7:41pm Tue 19 Mar 13
The Council's handling of Working Neighbourhood Funding, WNF, was utterly abysmal.
The majority of jobs 'secured' being those of Council workers with salaries backfilled from WNF; with the whole scam cloaked by a few grants squandered on compliant 'local charities' in return for taking the Council's Shilling by co-operating in drawing down the funding from Government.
Despite WNF being intended to target local jobs for local people in the here and now in addition to wasting millions the Council earmarked millions for 'strategic investment' in a new high speed internet grid.
The idea being to create a business friendly digital environment and to accelerate investment in big strategic job creating developments.
This funding has not been spent and remains in the Council coffers.Yet another sickening example of the cynical mismanagement of public funds to fulfil their own corporate agenda at the expense of the Wirral.
public.
This Council is a self interested conspiracy of crass cynics which Basher Burgess has yet to do anything about , apart that is from reshuffling the old guard and rewarding some of the most culpable with bigger and better paid jobs.
andygt6
says...
8:13pm Tue 19 Mar 13
Quote HobroW," 25,000 a week you need to reasure yourself of their competence specifically public funds"
And
Quote Moogos" 25 000 per week being piped to a subcontractor with little regard for proper safeguards"
Surely the competence and safeguards would of told the council the initial contractor was in trouble,thus prevented extra cost incured by the tax payer.
antisthenes
says...
8:33pm Tue 19 Mar 13
Was due diligence applied last year when Frank Field was 'awarded' £300k by this Council for his back of a fag packet proposal to rid the peninsular of poverty?
Or did his mates just nod it on?
Frank wants to initiate an untried, untested unproven project that displaces tried, tested and proven existing local services run by cost effective charities.
Project Progress Update: Thousands frittered away on useless academic research; and big job advertised for a big project boss on a big salary= £60k;
Well at least one person is guaranteed to escape the poverty trap on Wirral.
Moogos
says...
7:49am Wed 20 Mar 13
Courting verisimilitude, every week the project wastes around 30 housholders full council tax contributions. On the max downside that's a waste of 9000 houses council tax payers over the six years or twice to three times the whole revenue potential of every house in Birkenhead ward!! WITH NO BONA FIDE AUDIT DEPARTMENT Think about that!! Who ARE these people.
PaulCa
says...
9:35am Wed 20 Mar 13
Moogos wrote:Add in the ££six figure pay offs; the HESPE ££millions; the numerous external ££reports; costs of ££interim staff; the countless contract ££fiascos; costs for Mr ££Frater and ongoing costs the LGA ££Improvement hangers on.... ££millions in bad debts... keeping the ££publicity machine oiled... ££costs of bogus consultations.... ££office refurbishment for the new CEO... plus £££££££hidden extras...
Ans its been going on for 6 long years!! That's some wastage of money
Courting verisimilitude, every week the project wastes around 30 housholders full council tax contributions. On the max downside that's a waste of 9000 houses council tax payers over the six years or twice to three times the whole revenue potential of every house in Birkenhead ward!! WITH NO BONA FIDE AUDIT DEPARTMENT Think about that!! Who ARE these people.
...we're talking BIG money.
....pun intended.
hobroW
says...
11:53am Wed 20 Mar 13
We should demand an investigation, as I have, of the role of the relevant council officers.Why?
Because at the start of the BIG fund I was nominated to perform the checks. I dismissed the first three for failing to meet criteria:-
1. The claimants had no track record and were in receipt of Family credit, hardly viable
2. The claimant was unable to provide management accounts, as required by the criteria, for the interval of over 6 months since their last management accounts
3. After two visits the third claimant
produced its corporate accounts that showed its net value was negative by tens of thousands- solvency was required by the criteria
At a meeting to review these results officers were reminded that the parliamentary expenses scandal was current, that public money should be disbursed wisely.However they went on secretly form myself , to disburse more funds to award No 3 the £20K.
I was removed from the process in favour of an unqualified subcontractor with no formal training on the basis that the process would thereby run more smoothly... the outcome of course is the Big fund investigation which we wait for with bated breath
hobroW
says...
11:56am Wed 20 Mar 13
andygt6 wrote:yep andygt6, very similar. Officers outrunning the elected representatives and by withholding infoprmation
Moogos,HobroW,was this same situation a reflection on what happened with the West Kirkby marina lake revamp,where the initial contractor went bust,thus costing a lot more for the work to be finished?
Quote HobroW," 25,000 a week you need to reasure yourself of their competence specifically public funds"
And
Quote Moogos" 25 000 per week being piped to a subcontractor with little regard for proper safeguards"
Surely the competence and safeguards would of told the council the initial contractor was in trouble,thus prevented extra cost incured by the tax payer.
PaulCa
says...
1:55pm Wed 20 Mar 13
Were recipients of this money connected either as friends or family of senior officers / councillors?
That's usually the way these things pan out. Follow the money and look closely at the relationships.
It's our money and I demand that the police now leave no stone unturned.
I remain dubious however as the SFO have never bothered to look at years of Council theft from disabled people's bank accounts, HESPE or any other dodgy council contracts.
Something stinks in the borough of Wirral.
hobroW
says...
1:56pm Wed 20 Mar 13
Why so coy as The Echo has run a story already
www.liverpoolecho.co
.uk/.../police-calle
d-in-by-wirral-counc
il-over- whistleblower-claims
-100252-32196443/
and the Daily Post
www.liverpooldailypo
st.co.uk/.../wirral-
council-investigates
-new- whistleblowers-claim
s-99623-30740243/
and again
www.liverpooldailypo
st.co.uk/.../police-
probe-fraud-allegati
on-at-wirral-start -up-company-99623-31
421356/
and again
www.liverpooldailypo
st.co.uk/.../police-
to-probe-wirral-comp
any-99623- 32983882/
The company was a frequent full page advertiser with the Wirral Globe whilst all this was being reported by the Echo/Post.
If there are court proceedings they simply will have to be held outside the region.
hobroW
says...
1:59pm Wed 20 Mar 13
A salient point but for present I must hold my water
hobroW
says...
2:49pm Wed 20 Mar 13
http://investwirral.
com/news.aspx
Leigh Marles
says...
3:16pm Wed 20 Mar 13
When I read the document for myself, I will name them.
Simple as that.
And I am sure you know, there are always two sides to every story.
Editor.
hobroW
says...
3:46pm Wed 20 Mar 13
What is the difference?
You do know the name of the company since the whistleblower himself spoke to you in the summer of 2012. Why ever would Grant Thornton interview me about a company and then I mislead you as to its identity?
Had I never stepped forward no-one would ever be the wiser so in that respect I am the fount.
clearly I dont comprehend all and
"We are as on a darkened plain
Swept by confused alarums of struggle and strife
Where ignorant armies clash by night"
hobroW
says...
3:47pm Wed 20 Mar 13
What is the difference?
You do know the name of the company since the whistleblower himself spoke to you in the summer of 2012. Why ever would Grant Thornton interview me about a company and then I mislead you as to its identity?
Had I never stepped forward no-one would ever be the wiser so in that respect I am the fount.
clearly I dont comprehend all and
"We are as on a darkened plain
Swept by confused alarums of struggle and strife
Where ignorant armies clash by night"
Moogos
says...
7:02pm Wed 20 Mar 13
I think the company name rhymes with squirreljiz! without giving the game away,
but...
you can check the links from the daily post and the eho above if you are confused in any way about my spoonerisms.
ouch!
Positive thinker
says...
8:55pm Wed 20 Mar 13
hobroW
says...
11:48pm Wed 20 Mar 13
Their identity thus may be disrobed
In fustian cloak of kindly countenance
their fame they thus did pronounce!
hobroW
says...
9:07am Thu 21 Mar 13
There is no such thing as a FREE Press, for wages, offices and printers must be paid.
No-one can blame a small newspaper for taking advertisements whilst an investigation is being conducted about the advertiser.
a paper can presume innocence...
All I have pointed out is tht it would be highly embarrassing to name an advertiser referred to the police and govt office in the paper whilst its full page adverts linger in the memory of its readers .
Even crusaders need to be fed and watered. Only whistleblowers dont get paid.
hobroW
says...
1:40pm Thu 21 Mar 13
hobroW wrote:Better is
Do you remember the Golden Globes?
Their identity thus may be disrobed
In fustian cloak of kindly countenance
their fame they thus did pronounce!
Do you remember the Golden Globes?
Their identity thus may be disrobed
In fustian cloak of Kindly countenance
Their charity thus did they announce
hobroW
says...
1:42pm Thu 21 Mar 13
hobroW
says...
5:33pm Thu 21 Mar 13
hobroW
says...
6:51pm Thu 21 Mar 13
bigfoot says...
10:10am Thu 14 Mar 13