Statement by Aberdeen City Council Chief Executive Douglas Paterson on the report by the Controller of Audit to the Accounts Commission
30/04/08
Aberdeen City Council Chief Executive Douglas Paterson has moved to reassure the public that firm measures have been taken to make sure council properties for sale are disposed of at market value.
Mr Paterson issued the statement below following publication of a report this week by the Controller of Audit to the Accounts Commission under Section 102(1) of the Local Government (Scotland) Act 1973.
The report raises serious questions over sales of properties between 2001 and early 2006 and says the City Council failed to realise full market value for properties disposed of in that period.
The document acknowledges that Aberdeen City Council took decisive action as soon as concerns emerged two years ago and acknowledges that the council’s external auditors have confirmed that the local authority conducted a thorough internal investigation.
The report highlights procedural deficiencies, poor record-keeping and failures in some cases to report accurate and relevant information to elected members.
Mr Paterson said: “This report draws attention to serious deficiencies in the former City Development Service. It also highlights cases where accurate and relevant information was not reported in the past to elected members, and I regard this as a very serious matter.
“The Council responded very quickly when these concerns emerged in 2006. A wide-ranging review of 26 property transactions was undertaken covering the period 2001 to 2006, and a series of actions have already been put in place to address all the shortcomings identified in that review. The property valuation function is now provided by a private sector company.
“If ever justification was needed for the major changes we made at the Council in 2005/06, this is it. This lack of compliance with procedures and poor accountability had to be addressed. There is no longer a City Development Service. Asset Management is now part of Resources Management and is being far more tightly managed.
“The City Council will obviously have a lot more to say once the ongoing police investigation and the Council’s disciplinary process has been concluded.”
The Accounts Commission for Scotland has met and considered the Controller of Audit's report on the property sales investigation at Aberdeen City Council.
Given the arrangements already in place for a Hearing into the report by the Controller of Audit on the audit of Best Value and Community Planning in Aberdeen City Council, the Commission has decided to cover
consideration of this report as part of that Hearing, due to take place on 13 and 14 May at Town & County Hall, Aberdeen.
The report is available at www.audit-scotland.gov.uk
If you have any queries regarding this, or any other news story, please contact Aberdeen City Council on: 01224 522000.
