Contact: Jeff Pattison, (01962) 877321; [email protected]

1 Introduction and Summary

1.1 At its meeting in April the Cabinet resolved that the investigation be completed within 3 months and a final joint report submitted to the Cabinet for their consideration and to have that report considered in public session. This was intended to ensure that the Council's high ethical standards and approach to probity in public services was dealt with in an open and transparent way. This report is intended to give a context within which the Investigating Report, which will be released into the public domain at the Cabinet meeting on Monday 24^th September, is considered.

1.2 This report gives a brief overview of the investigation undertaken into the letting of consultancy contracts for the Contact Centre Programme. The full and final report into this investigation, which was carried out by the Head of Legal Practice and the Chief Internal Auditor, supervised by Mr Stephen Taylor, the County Council external District Auditor, is on the agenda for this meeting. It includes a range of recommendations.

2 Background

2.1 The Cabinet considered at its meeting on the 23 April 2007 a report into the letting of certain consultancy contracts in relation to the Contact Centre. Issues were raised over the procedures followed and whether they were compliant with EU Procurement Rules and the Council's own Standing Orders. The Cabinet required an investigation to be carried out by those people referred to at paragraphs 1.2 and in accordance with an agreed set of Terms of Reference. These are replicated at paragraph 1.3 of the Investigating Officers report.

2.2 The Cabinet also requested in the interests of transparency and openness that the report prepared by the Officers be considered in open public session.

2.3 The investigation has now been concluded and the opportunity should be taken to thank Mr Stephen Taylor of the Audit Commission for his assistance. He is of the opinion that the investigation has been thorough, that the report stands up to scrutiny and is evidentially based.

3 Key Messages from the Investigation Report

3.1 There is no evidence that any individual officer acted wilfully in ignoring legal advice or procedures to achieve any personal gain - see paragraph 13.20 of Investigating Officers' report.

3.2 There is no evidence that any favouritism was shown to any of the consultants appointed from the one agency involved, or that any contractor or employee involved in the process benefitted in any personal capacity. See paragraph 13.31.

3.3 The Contact Centre development has now been successfully completed and when fully operational should deliver the expected savings of £1m per annum for taxpayers, although opportunities to achieve better value for money in some of the one-off set-up costs may have been lost ( see pargraph 13.16 ).

3.4 There is no evidence of concerns in the Council's procurement processes or systemic weaknesses. The issue arose in this case because the procedures and legal advice were not followed. See paragraphs 13.2, 13.3 and 13.7.

3.5 There is evidence to suggest that there is a "case to answer", in respect of three Officers, that should proceed to a hearing via the Council's normal disciplinary process. This will allow for a full consideration of the facts, including representations from the officers involved.

However, it needs to be recognised that the Investigating Officers do not consider that "gross misconduct" is involved on the part of any of these Officers - see paragraph 13.20.

Therefore, without prejudice to any further hearing that may take place, or to any finding, the misconduct alleged in the Investigating Officers' report is at the "lower end" of the scale.

4 Role of Cabinet

4.1 The Cabinet's role is to consider the Investigating Officers' report and the recommendations contained within it. The Cabinet may:-

1. Accept the Report, together with all or some of the recommendations
2. Reject the Report in its entirety

3. Defer the report for further consideration

Where any recommendation is not accepted, it would be normal practice for reasons for that decision to be given.

5 Recommendation

5.1 That the Cabinet accept the Report of Mr Stephen Taylor, the Council's District Auditor, the Head of Legal Practice and the Chief Internal Auditor, together with the recommendations contained in paragraphs 14.1 to 14.7 and request that appropriate action be taken to implement those recommendations.