Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Daily Record
Daily Record
National
Stephen Temlett

Dumfries and Galloway councillor wants accountability over botched £4.2 million roads contract

A councillor has called for accountability over a botched roads contract.

The saga of the fourth generation maintenance deal which cost taxpayers £4.2 million was concluded on Thursday.

But Castle Douglas and Crocketford member David James criticised the local authority for the shambles.

Mr James said: “We failed on DGFirst. Given we’ve transferred so much responsibility to officers when will the public see some accountability when things go wrong?

“At the moment they see, in their terms, a fat cat being pensioned off with a golden parachute after a disaster.

“I’m not sure if the chief executive (Gavin Stevenson) is on this meeting but I’ll pose the question anyway: Does he feel overburdened with responsibility and where should the buck stop?”

Mr James noted that there had been “a succession of fiascos” including the DG One leisure complex and the waste PFI initiative which had cost the council millions of pounds.

It was pointed out that Mr Stevenson was unwell and unable to attend the online meeting.

Communities director Derek Crichton said: “We have been in the process over the last two to three years of improving and clarifying delegations to both committee and to officers.

“It would be my assessment that we have now clarified responsibilities that sit with both and that should ensure there is improved accountability.”

The authority’s arms-length operation, DGFirst, entered into a maintenance contract with Transerv in 2013 that was expected to deliver a profit but instead produced a £4.2 million loss over five years due to mismanagement.

Two separate probes, one conducted by the local authority and another by external accountants KPMG, found no evidence of fraud or corruption.

But Elaine Murray, the council leader, has previously admitted: “There’s certainly been incompetence.”

It emerged during investigations into the affair that the fourth generation roads contract, as it was known, had not even been signed until after the end of the period it was meant to cover.

Mr Crichton told members the saga has been a “catalyst for significant change” in the way the council operates complex deals with better checks and processes employed.

The council’s internal investigation found a trail of mismanagement and incompetence in June 2019, with police alerted to the investigation for potential fraud.

In July 2020, a second investigation, by KPMG, was agreed.

Initially the local authority identified £3.26 million losses on the contract but KPMG later established it was closer to £4.2 million.

In February KPMG presented their findings and concluded that DGFirst officials entered into the deal without fully understanding it and there was a lack of knowledge and adequate systems to assess it.

The external auditors also had issues accessing certain material in their investigation and couldn’t speak to everyone they wanted to speak to.

Most people involved at the start of the deal have since left the council.

Councillors noted the reviews, improvements that have been made and agree the investigation is over.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.