Basildon Council multimillion-pound schemes may be at risk of fraud (From Echo)

Basildon Council multimillion-pound schemes may be at risk of fraud

4:10pm Monday 19th January 2009 in

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GOVERNMENT watchdogs have raised concerns about the way the finances of three multimillion-pound Basildon Council regeneration projects are being handled.

The Government’s Audit Commission has found “significant risks” in the bookkeeping behind flagship projects.

This includes the £1billion Basildon masterplan, the £150million Wickford town centre masterplan and the proposed £35million sports village in Gloucester Park.

Tomorrow, the council’s audit and risk committee will be briefed on the full implications of the Audit Commission’s findings.

A report to councillors suggests “more complex accounting” may be needed.

Labour councillor Nigel Smith has raised similar concerns in the past. He said: “The council is engaged in extremely expensive and complicated projects.

“I am concerned whether we have the resources to deal with them adequately. A huge amount of public money is potentially at risk.”

Tory council leader Malcolm Buckley admits the council’s accounting systems may leave it open to fraud.

He explained: “I believe what the commission is saying is a project of this scale can bring added accounting challenges above and beyond what most local authorities face.

“It may say our procedures are not sufficiently robust to safeguard against fraud – but I am speculating. Our audit team will look at what the commission says and put in place any procedures.”

He said the sports village was still on track to open in late 2010 . A developer for the scheme would be announced in March.