An emergency independent audit has been called after an explosive whistleblowing document was posted to councillors and the chief executive.

The 10-page dossier, purported to have been prepared by six serving council officers, makes claims of corruption, malpractice and unlawful expenditure within Merton council.

The whistleblowers claim the council’s chief executive and elected members were deliberately misled by a senior officer they accuse of unlawfully making payments of £1.29m of taxpayers’ money to temporary consultants, when posts could have been filled by permanent staff.

One consultant covering a vacant post is alleged to have been paid a total of £441,900 since June 2011 – more than £220,000 per year.

By hiring a permanent member of staff to the post the council could have saved a staggering £271,000, according to the report.

Another consultant named in the document is alleged to have been paid £348,000 since April 2009 – about £25,000 per year more than if the council had hired a permanent employee.

The document also alleges three further consultants were hired by a consultant resulting in a further £503,000 of alleged “unlawful expenditure” and in contravention of the council’s own code of conduct.

The document claims the overspend has been “deliberately hidden” from the chief executive and council members with jobs filled without a legal tendering process and without proper approval by cabinet and/or the overview and scrutiny committee.

An excerpt from the document read: “This is a whistleblowing statement from six serving officers at Merton Council who are outraged by the constant abuse of high office and continued gross mismanagement of the public purse.

“By pooling their evidence and working together, these officers have decided to stand firm and expose this corruption to both the chief executive and elected members of the council.

“These matters demand a full and independent public investigation and appropriate action on behalf of the taxpayers of the borough.”

The document said filling vacant posts with permanent members of staff, rather than consultants, could have saved the jobs of staff made redundant.

A total of 106 members of staff were made redundant in 2011-12 and 27 in 2012-13.

The council’s contract standing orders document sets out the procedure for hiring external consultants first emphasising they are expensive and should only be hired when it is the only option.

The document clearly states any consultants should not be hired to cover vacant posts and should offer specialist skills not available in house on a “time limited” basis, usually for a specific project.

Councillor Richard Hilton, of Merton’s UKIP group, said: “It doesn't matter who is running this council.

“There are things going on that shouldn’t be happening. This document implies there is significant corruption at the council.”

Councillor Oonagh Moulton, leader of the Merton Conservatives, said: “If wrongdoing is found to have occurred, then the consequences for the reputation of the named officers, the political leadership of the council and the authority would be severe.

“However, it is vital that the principle of innocent until proven guilty is maintained.”

The council said external auditors are investigating, but that the individuals accused of corruption will remain in their posts throughout.

Ged Curran, chief executive of Merton Council, said: “The council has a robust whistleblowing policy to ensure there is a culture of transparency in the organisation.

“I am aware of the allegations and have instructed external auditors to carry out a full investigation.”

 

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