Contact: Jeff Pattison, ext 7321, e-mail: [email protected]

1. Summary

1.1 The following decisions were made:

a) That the Cabinet notes the contents of the report, and approves the action taken to regularise for the future, the letting of the consultancy contracts for the Contact Centre.

b) That a full investigation be undertaken into the circumstances surrounding the letting of the consultancy contracts referred to in this report, supervised by Stephen Taylor, the County Council's Relationship Manager at the Audit Commission and undertaken by the County Council's Chief Internal Auditor and the Head of Legal Practice, to be completed within three months with a final joint report submitted to the Cabinet for consideration.


c) That the Terms of Reference for the investigation referred to in the report be supplemented by:


(i) consideration of any personal or business relationships between those employees involved in the letting of these contracts and the contractors themselves


(ii) A random review be undertaken of other recently let contracts to assess whether all procurement rules have been complied with


(iii) An indication be given as to the timescale for the Monitoring Officer and Section 151 Officer to bring any such similar reports to the attention of the Cabinet, should similar circumstances arise in the future.

2. Reason

2.1 As a result of a complaint forwarded to the County Council by the Audit Commission, the County Treasurer's Internal Audit have undertaken a preliminary investigation into the initial letting of consultancy contracts by IT Services in respect of preparatory work for the Contact Centre. It appears likely that significant contracts have been entered into with external consultants which have failed to comply, either with the County Council's Contract Standing Orders, or indeed, the European Union's Procurement Rules. This report, therefore, identifies the action that has already been taken to remedy the situation in respect of future activity, and also what further action is required to be undertaken.

3. Other options considered and rejected - Not applicable.

4. Conflicts of interest declared by the decision-maker or other Executive Member consulted - Not applicable.

5. Dispensation granted by the Standards Committee - Not applicable.

6. Reason for the matter being dealt with if urgent - Not applicable.

Approved by: Date:
Councillor T. K. Thornber, CBE - Chairman