A SECRET dossier on allegations of corruption at scandal-hit North Lanarkshire Council has been handed to police.
The local authority – one of Scottish Labour's last bastions in the central belt – last year revealed an unsanctioned overspend of £20m on public contracts.
North Lanarkshire's new leader, Jim Logue, has led a crackdown on the way the council buys goods and services, openly using words like "corruption" despite looming elections.
His authority is currently finalising a counter-corruption strategy ahead of May's polls. But a dossier from auditors, bluntly referred to as Report Examining Allegations of Fraud and Corruption around Aspects of the Council's Procurement and Contracting Arrangements, has already sent shockwaves through local government.
Auditors have now passed on their findings to the police, who have been kept informed of a series of overlapping and parallel investigations into allegations of procurement irregularities across west central Scotland
A spokesman for North Lanarkshire Council said: “We routinely share information with Police Scotland during internal audit investigations where there are allegations of behaviour which could give rise to accusations of criminality.
"We have shared information with the police throughout the current investigation.”
The fact council auditors have shared such information does not mean that the police are carrying out a full-scale investigation. A Police Scotland spokeswoman said: "North Lanarkshire Council has made Police Scotland aware of the allegations and the matter will be reviewed. Police enquiries are continuing into this matter."
The report found evidence of contracts extended in breach of procurement processes and close relationships between some councillors, council officials and outside contractors. However, it did not find evidence of benefits actually being received directly as a result of those relationships. Such investigation would normally be beyond the scope of auditors.
Auditors named four officials in their report, which has still not been seen by all councillors. Two officials have returned to their posts after suspension. A third is off sick and a fourth has retired.
Logue replaced former leader Jim McCabe last year. McCabe has strenuously denied that his personal relationships with a series of contractors affected contracts.
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