THE scandal of the councils' missing millions deepened yesterday when it emerged that two more authorities have become embroiled in the direct labour organisation fiasco.
In addition to the #4.8m deficit at North Lanarkshire and #3m at East Ayrshire, one of East Dunbartonshire's DLO units has made a loss of #483,000. Another authority, Argyll and Bute, said it was projecting a potential financial deficit for the year.
A spokesman for East Dunbartonshire said: ''The council's DLO has nine business units. Eight of the nine have achieved their profit targets each year and the ninth, Connect Property Maintenance, made a deficit of #483,000 two years ago.
''Given the problem with this one business unit, a recovery strategy was devised with management, councillors, and unions, and action was taken successfully to reduce the deficit by more than half, and we are now confident that this particular unit will return to delivering healthy profits in line with the other eight business units during this financial year.''
Connect Property Maintenance was embroiled in controversy last year when the depot was closed for two days and vans were stopped on the roads after allegations were made about ''homers'' and falsified timesheets.
Eight people were suspended and bank statements, retailers' receipts, and invoices scrutinised. Action was taken against three people although no evidence was found to justify calling in the police.
The second authority, Argyll and Bute, said it became aware last September the building maintenance DLO was projecting a potential financial deficit for the year.
A spokesman said the council took immediate action by tightening financial control systems and changing the management structure of the DLO. The council has not closed its accounts for 1997-98 and the level of any final deficit for the year will not be known until the end of June.
Meanwhile, North Lanarkshire Council Labour group expressed its total support for council leader Harry McGuigan in dealing with the DLO deficit.
Councillor Joe Shaw, chief whip, said: ''As far as we are concerned, he has acted in the totally appropriate manner since this came to light. Like the rest of the councillors, he had no way of knowing that there was a problem until it was found during our accounting procedures.
''We are not paying any heed to this misguided campaign for him to resign. It is simply not an issue and it has not once been raised.''
SNP Councillor Kathleen Mc-Alorum said: ''It is typical of this Labour group that they believe they can ignore what is going on in the real world.
''They are completely burying their heads in the sand and obviously hoping that this bunker mentality will save them. It shows a complete and utter contempt for the electorate of North Lanarkshire.''
Meanwhile, Unison, which has 6000 members in North Lanarkshire, met STUC leaders in Glasgow. Unison regional officer Bill Martin said: ''The public can now see the trade unions are now serious about fixing problems. The question is - is the council?''
East Ayrshire Council leader David Sneller yesterday met officials at the Scottish Office to discuss the #3m deficit. Earlier this week, the Secretary of State issued a Statutory Notice formally seeking information on the operation of the council's DLO.
Mr Sneller said it had been a constructive meeting in difficult circumstances. He said councillors had nothing to hide. He had considered their actions and there was nothing they could have done differently.
''We instigated an investigation as soon as the deficit came to light, we called in the Accounts Commission when we realised it was growing, and we contacted the Scottish Office when the scale of the problem began to emerge.
''When the independent audit is complete, and when all the information is available, it will be made public. The people of East Ayrshire can be assured that I share their concern about this situation, and that it will be dealt with firmly, quickly, and openly.''
q As the controversy continued, nearly 400 delegates were yesterday attending the annual conference of the Association of DLOs in Glasgow.
Officials and councillors representing around 270 local authorities across Scotland, England, Wales, and Northern Ireland exchanged ideas on the organisation's key policy issues. Nowhere, however, during the four-day conference, is any time being dedicated to discussing the losses being incurred by DLOs in Scotland.
Among those taking part at the conference today are Scottish Local Government Minister Calum MacDonald, Lib-Dem Donald Gorrie, Scottish Tory Murray Tosh, and Scottish National Party MP Andrew Welsh.
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