Council to review security contracts following probe

An internal investigation into how Derry City Council awarded security contracts has raised concerns over ‘inconsistencies’ about the stewarding of last year’s local council elections.

The audit was carried after a number of allegations were made to the Northern Ireland Audit Office (NIAO) in January regarding stewarding and security contracts awarded by the former Derry City Council, relating to procurement arrangements in specific areas.

An investigation was launched into the complainant’s claims in February, which was undertaken by the council’s Internal Audit Manager and the Lead Assurance Officer (the investigation team).

The 87-page report on their findings has now been was presented at a meeting of Derry City and Strabane District Council’s Assurance, Audit and Risk Committee.

Presenting the report, James Harrigan, of the council’s audit team, said that ‘a significant number of issues’ had been identified by the investigation team.

The report also identified a ‘need to review the way the council produces and manages tender specifications’ after a number of ‘inconsistencies’ were found by the investigation team. The report found that the inconsistencies were related to the development and management of several stewarding tenders awarded by Derry City Council.

Those were last year’s MTV Crashes event (pictured), the council elections in May 2014, and two separate Skeoge Static and Mobile Security contracts awarded in January and March of this year.

In relation to the council elections of last year, the investigation found that the required election criteria for the council election 2014 was ‘not detailed explicitly in the election security specification’, although the investigation was satisfied that the controls were in place in practice.

Mr Harrigan told the meeting that ‘recommendations had been made going forward’, which were included in an ‘action plan’ contained in the report.

That will now see the setting up of a centralised procurement unit within council who will manage all of its tender documentation.

As a result of the investigation, council will review how it produces and manages tender specifications, which the report recommending a ‘more formalised with an appropriate approval system’.

The independent councillor Paul Gallagher asked if allegations made by the complainant were upheld, and if that person was ‘satisfied’ with the investigation.

Mr Harrigan replied that council were still awaiting further feedback from the audit office.

Independent councillor Darren O’Reilly voiced concerns over the ‘repercussions’ the investigation could have, adding that it had the potential of being a ‘catastrophe’ for council.

Independent councillor Gary Donnelly added that council ‘can’t dismiss’ the investigation. He said that with regards to tender allocations, council’s record keeping was ‘abysmal’, and said there had been a ‘carefree attitude to public funds’ displayed in the allocation of contracts, likening the process to ‘Fawlty Towers’.

However, the chair of the committee, Sinn Fein’s Sandra Duffy, said that the audit team had ‘identified weaknesses’ and had put measures in pace to ‘rectify them’.

Her party colleague, the Waterside Sinn Fein councillor Paul Fleming, said that the report should be ‘put in context’ before people start talking about ‘catastrophes’.

He said that of 60 complaint and allegations made, only four were upheld, adding that ‘very clearly no fraud was involved’ and that his party welcomed any ‘tightening up of the system’.

Mr Harrigan told the meeting that a follow-up audit will take place in three months to review the progress being made to implement the report’s recommendations.