11 DORSET Council officers have been sacked after a report brought to light a financial scandal involving undeclared gifts and inflated costs for work.
Independent auditor South West Audit Partnership identified significant weaknesses in governance, financial controls, procurement practices, and oversight in health and safety compliance work carried out by the council between December 2022 and October 2024.
An investigation began in November 2024 when concerns were raised internally about non-compliance with financial controls and escalating overspending on health and safety works in council-owned buildings.
The work was initially budgeted at £4 million but ballooned to nearly £13 two years later without subsequent cabinet approval, a funding strategy, or a documented business case.
The report found repeated and unexplained budget increases, overreliance on a small pool of contractors, and inflated costs.
It said that a small number of firms were chosen to carry out work and that some prices were inflated.
In one instance, the council was charged £300 for services worth just £20.
Undeclared gifts and hospitality offered to officers in the assets and property service were identified, resulting in the sacking of 11 officers who were brought on board to solve health and safety issues at council buildings.
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Council leader Nick Ireland said he takes the findings “very seriously”.
“Although the original intent of the work carried out from 2022 was to improve safety and address prior shortcomings, the way it was delivered at that time did not meet the standards our residents rightly expect,” he said.
“This matter predates the current administration, and I fully support the commitment to transparency and accountability.
“A robust action plan has since been developed, and a dedicated team is in place to drive the necessary improvements. It is essential that public funds are managed with the highest standards of integrity.
“I welcome the scrutiny of the audit and governance committee and fully endorse the organisation’s commitment to learning from past mistakes to ensure such failures are never repeated.”
“Serious weaknesses in governance”
The report said that the recruitment and appointment of interim officers within the compliance team displayed “serious weaknesses in governance, oversight, and compliance with corporate policies”.
It said that appointments often lacked necessary documentation and were made by other interim staff without involvement from HR, procurement, or finance. Potential conflicts of interest were identified, along with missing approval trails for appointments and pay rate increases.
Key issues were also raised surrounding the “inappropriate influence and lack of transparency in the use of one company” to carry out work as well as frequent use of urgent” justifications and references to potential fines to likely bypass proper governance, often keeping budgets just below cabinet approval thresholds.
Interim chief executive Sam Crowe said the failures highlighted in the report fall short of the standards people should expect from Dorset Council.
“I also acknowledge that councillors were not involved in the way they should have been at the time. This limited their ability to intervene or hold the organisation to account,” he said.
“As the council’s leadership team, we take full responsibility for addressing what went wrong and ensuring it cannot happen again. We will work hard to regain trust through transparency, learning, and by sharing progress on improvements with the public.”
In response to the investigation reports, Dorset Council has developed a comprehensive action plan that is currently being implemented, including:
- Strengthening financial oversight and budget monitoring
- Improving procurement and contract management processes
- Enhancing governance and member involvement in complex decisions
- Reviewing recruitment and management of interim and agency staff
- Providing enhanced training and guidance for officers
- Ensuring regular monitoring and reporting to the Audit and Governance Committee
Read the full report here: https://www.dorsetcouncil.gov.uk/w/health-and-safety-compliance-investigation-2025#key-findings
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