A team of government inspectors today moved to curb the power of Tower Hamlets Council to sell property, following the publication of a PricewaterhouseCoopers (PwC) report which found evidence of “serious irregularities and a lack of transparency” in the disposal of public buildings.
The move is part of a wider takeover of the local authority’s powers, after allegations of poor governance and financial mismanagement came to light in April.
After receiving documents outlining the allegations, Communities Secretary Eric Pickles (pictured) initiated the PwC investigation. The council was later accused of delaying the process by failing to provide requested information on time or at all.
The investigation’s findings led the Secretary of State to make a statement to the House of Commons announcing the appointment of three commissioners to take charge of some aspects of the Council’s administrative responsibilities.
Among the measures announced by the minister was that the council must obtain the agreement of the commissioners before disposing of any further public property other than housing.
This is in response to allegations of grants made against the advice of council officers, and the sale of the former town hall to a political supporter of Mayor Lutfur Rahman who firmly denies any wrongdoing.
The commissioners moving into council headquarters today have been named as former London Fire Commissioner Sir Ken Knight, and Max Caller, the chairman of the Local Government Boundary Commission for England. The identity of the third commissioner will be announced at a later date.
“Intervention was not a decision taken lightly,” Mr Pickles said. “However, I could not ignore the overwhelming evidence of the council’s failure, and allow this to continue unchecked. I do not accept the Mayor’s representations that problems are easily put right.
“Residents need to know that decisions are being taken properly in an open and accountable way.
“The commissioners I have appointed are experienced and talented professionals who understand that transparency and accountability are vital to the functioning of local government.”
A spokesperson for Tower Hamlets Council said they look forward to working with the commissioners and demonstrating that the council runs “high performing services.”
“It is our understanding that the Mayor will be reviewing the directions to decide upon the most appropriate course of action,” the spokesperson added.
