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Labour question council decision to not appoint independent auditor for Medway Commercial Group investigation

13:47, 15 February 2019

updated: 13:50, 15 February 2019

Medway Council's Labour group is questioning why an investigation into a company which serves as the authority's trading arm is not being led by an independent auditor.

The council's ruling Conservatives have ordered an internal audit and review of Medway Commercial Group (MCG) following concerns about its maintenance of the Towns' failing CCTV system.

In January, the council transferred its service to supply school governors, which were run by MCG, to another provider.

Auditors have been called in
Auditors have been called in

Questions have also been raised about whether the company was capable of overseeing a £25 million independent school project in Gillingham.

Labour leader Cllr Vince Maple said: “I’ve raised concerns about Medway Commercial Group for some time now.

"It is to be welcomed that any audit and review of the organisation is happening, as is often said sunlight is the best disinfectant.

"Although there is a good internal audit and counter fraud team in Medway, many would ask why this isn’t being looked at by an independent auditor or indeed the council’s external auditor Grant Thornton.

"MCG’s failings on issues like providing schools with governor services or more than half of CCTV cameras not working is well documented.

"It must be reiterated a Medway Labour council would not have created MCG.”

Cllr Vince Maple has questioned the decision
Cllr Vince Maple has questioned the decision

The council's deputy leader, Cllr Howard Doe, who took over as MCG chairman in January, said: “Medway Council and Medway Commercial Group (MCG) have jointly commissioned an internal audit and full review of MCG’s operations.

"The review and audit are being carried out by Medway Council and are looking at how MCG operates as well as seeking to draw on best practice from the industry.

“It is vital for Medway Council that any services we commission deliver those services effectively and efficiently and provide value for money.

"Following concerns over the delivery of CCTV services last autumn, Medway Council took action to start a review of all the services provided by MCG for all its customers.

"Such audits and reviews are quite normal in the operations of any business.

“MCG remains fully committed to providing a high standard of service while the review is undertaken.”

The audit started about three weeks ago and is expected to be complete shortly with outside specialists being recruited, if necessary.

What do you think? Send your views to medway@thekmgroup.co.uk

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