Council accused of cover-up in row over tender

Jamie MacDonald • Published 11 Sep 2009 14:32 3 Comments

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Clackmannanshire Council has been accused of a cover-up by its own councillors following the decision to put the management of Alloa's Leisure Bowl out to tender.

Wasp Leisure Limited was granted the tender for the leisure centre in a council meeting held in private on Thursday.

Ahead of the meeting independent councillor Craig Holden contacted Central Scotland Police in an effort to establish whether the council was breaking the law and says he was told by police they "could not be 100 per cent certain that a criminal act had not been committed".

The issue of concern surrounds Apex, the company that previously ran the Leisure Bowl.

It was known by some within the council at least four years ago that the decision to appoint Apex was in breach of the European Procurement Directive.

An email from the then head of legal services, Jackie McGuire, to the then chief executive, Dave Jones, dated 7 September 2007 advises, "There is no 'do nothing' option here. Please remember that we are contracting for services from Apex in breach of the European Procurement Directive (EPD). We cannot run for two more years in breach of the EPD."

Last week, almost exactly two years later, Mr Holden claims he was informed for the first time the council had been in breach of the EPD and the Apex contract had been put out to tender.

On asking why there was so much secrecy over what may have started as a genuine error, Mr Holden claims he was told it was for "legal and reputational" reasons.

The Local Government Act (Scotland) states that when a local authority's monitoring officer is made aware of a breach of the law they must prepare a report to the authority and, as soon as practicable, send it to elected council members.

There was no mention of the breach of the EPD in the paper put before council on Thursday. The sole reference to the directive says that by inviting tenders they are now fully compliant with the law.

Mr Holden told the Advertiser he did not take part in Thursday's vote for fear that by awarding the contract he would be breaking the law.

He added, "The council should have been informed of the fact that we were breaking the law. Only the chosen few were informed which is also a breach of the law.

"Some have known about this for months yet have kept myself and others in the dark. They had a duty to tell us everything but told us nothing.

"There is a culture of secrecy within the council. Officers are compliant in this, Administration members encourage it and councillors like myself are isolated, insulted and ridiculed when we expose it."

Mr Holden went on, "The decision to hold Thursday's meeting in private had nothing to do with prejudicing the council's negotiating position and everything to do with the final act of a cover up.

"I cannot understand why the meeting was allowed to continue. I believe the council was wrong to hold the meeting and that the advice provided by officers was incorrect.

"Clear reference was made by me regarding the legal responsibility of the monitoring officer to produce a report and our legal duty to not take decisions which would give effect to any proposal or decision to which the report relates.

"Only myself and Walter McAdam declined to vote and award the tender to Wasp Leisure. Hiding behind officer advice is no excuse, in my opinion, each of the other 16 councillors chose to break the law and they should be held to account for that."

SNP councillor Gary Womersley also raised his concerns over Thursday's vote.

He said, "I think there are aspects of how the council has dealt with this paper that certainly lack the required degree of any transparency from a public body. I know the council said there would be a full investigation into how officers appear to be making strategic decisions on behalf of the council. External scrutiny of how the council has acted here is required."

Referring back to calls made in previous months for a clear leisure strategy for the area, Mr Womersley added, "It always seems to go back to leisure, first Zones, then the Equestrian Centre and Johnstone Centre, and now this."

He also suggested it was in the council's interests to pass on the responsibility for equal pay claims that is affecting councils due to the single status pay agreement.

Mr Womersley said, "I think potentially it has been expedient for officers of the council to manufacture an alleged breach of procurement legislation when the real issue here is about potential equal pay claims from former employees of Apex Leisure - this is worth £750,000."

The council's chief executive Angela Leitch, said, "The council's arrangement with Apex Leisure Bowl, which is an arms-length company of the council, was not compliant with the European Procurement Directive. In order to correct this, I used my delegated authority to put the management contract out to tender.

"Officers were aware of potential non-compliance in 2005 and took measures to correct this by setting up an agreement with Apex Leisure and employing a consultant to give further advice. However, a consultant's report received on 2 April 2008 highlighted the issue and clarified the action to be taken.

"The decision to enter a tendering exercise to ensure compliance with the European Procurement Directive was properly made under my delegated authority and appropriately reported to council last week."

Ms Leitch added, "The terms and conditions of the employment of Leisure Bowl staff are unaltered by this change in management. Leisure Bowl staff are not employed by the council and therefore not subject to the Single Status equal pay agreement."

Away from the disputes over the council's handling of the Leisure Bowl, the tender by Wasps Leisure was the sole offer to come within a price range deemed to be acceptable - a cost to the council of £418,000 per year.

There are expected to be no changes to prices as a result and individuals on the Sports Scotland talented athletes programme will enjoy free training facilities. There will be protected access for school swimming galas and support to local swimming clubs. There will also be a profit-share agreement with the council.

Councillor Bobby McGill said, "This is a positive move for the Leisure Bowl, continuing the good value sports and leisure services available to the community. I'm pleased to say we've been able to choose an experienced provider and get an excellent deal."

Have your say. Post a comment on this article.

Unknown
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Sep 16, 11:16
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Well Done Councillor Craig Holden. It's about time someone stood up for the public in Clackmannanshire.

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Gordon Reilly
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Sep 19, 00:54
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Does that mean that the Council no longer employs any of the staff who work at the Leisure Bowl?

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James A Mackie
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Sep 23, 19:12
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Who is ermployed by the Council as general manager of Apex and who is behind Wasps leisure? Is the one and same individual?

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