£310k of city council schemes are waved through
COUNCIL officers applied to have more than £1.5 million worth of contracts approved without going through a tendering process designed to secure best value for money.
Stoke-on-Trent City Council's senior officers applied for exemption certificates for 12 projects which meant they did not have to go through a protracted procedure.
Information, obtained by The Sentinel under the Freedom of Information Act, showed six of the proposed exemption certificates were later cancelled. The six which were passed totalled £310,915.
The data has come to light as the Audit Commission and police continue to investigate alleged irregularities with the tendering process.
It has previously been revealed the authority had only 30 per cent of 141 procurement processed through the central procurement unit between January and October last year, compared to 60 per cent for other councils.
Authorities are allowed to use exemption certificates in exceptional circumstances where there is only likely to be one suitable supplier for a product or function.
But in June last year, an exemption certificate was used to appoint a consultation firm for the demolition of the Westcliffe Hospital building in Chell. And because similar work had been carried out by one firm, Divestment Solutions, council officers decided to continue with that company.
In addition, a £30,700 contract with an IT company was renewed in June for upgrading software,because no other firm was likely to supply the system needed.
Robust tendering is supposed to ensure competition is fair and public confidence in a council's value for money is strong, while also protecting the authority from accusations of malpractice.
Paul Simpson, the city council's director of business services, said: "The council only uses exemption certificates when there is a sound and rational business case to justify not following a normal procurement exercise. Exemption certificates require the authorisation of the relevant director or assistant director and the head of procurement.
"Over the last 12 months the council has further strengthened its procedures for issuing exemption certificates, which has resulted in a significant reduction in the number issued."
An exemption certificate was used to buy training for the disbanded North Staffordshire Regeneration Partnership in January last year. It involved a two-day course and two one-day courses totalling £40,000.
Hardial Bhogal, the council's director of city renewal, said: "That £50,000 was given to the city council by The Homes and Communities Agency, to run courses for people involved in regeneration schemes.
"The course was attended by 21 people and comprised 12 sessions. An exemption certificate was requested because the HCA's preferred provider of the course, the British Urban Regeneration Association had already been through the HCA's procurement process."
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2 Comments
by Alan, Lightwood
Tuesday, May 03 2011, 5:33PM
“Is that how they foisted the Vanguard consultants on us?”
by T COPE, TUNSTALL
Tuesday, May 03 2011, 3:57PM
“The data has come to light as the Audit Commission and police continue to investigate alleged irregularities with the tendering process.
This says it all.”