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Liverpool Echo
Liverpool Echo
National
David Humphreys

Council to identify 'root cause' of costly contract failings

Standards have “not been adhered to” over the contract debacles that have engulfed Liverpool Council.

Cllr Frazer Lake, cabinet member for social care and health, told a committee of councillors the local authority must “address the root causes of these problems to ensure it doesn’t happen again” following a series of high profile missteps. Failures over its procurement practices have dogged Liverpool Council in the last few months, from its expensive energy foul-up to the lack of prompt renewal of more than a dozen contracts ranging from its IT services to adult and social care, which could end up setting it back up to £20m.

The council’s chief executive, Tony Reeves, told cabinet members last week the authority had “nowhere to hide” on this issue and Mayor Joanne Anderson said it was something it had “to get a grip of”. Addressing the social care and health committee, Cllr Lake said the matter was being taken seriously by senior members.

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He said: “The standards we expect haven’t been adhered to and this is something we’re working hard on, council wide, not specific to adults or any part of the portfolio. As everyone will know, there is a council review ongoing of all contracts and extensions, and as a cabinet member I want to reassure this select committee that this isn’t something I’m taking lightly.”

A pair of new roles are to be created at the heart of the council’s procurement and finances briefs following the resignation of Mel Creighton, former deputy chief executive and director of finance. Cllr Lake said additional meetings were being held to strengthen the authority’s approach to contract organisation.

He said: “I am pleased that we’ve found the errors because it means we have the opportunity to put this right and address the root causes of these problems to ensure it doesn’t happen again. There are also regular meetings taking place between the directorates and the procurement teams to ensure we’ve got a strengthened, unified approach to contract extensions and renewals so we’re not in a similar situation in the future.”

Cllr Lynnie Hinnigan, Labour member for Cressington ward, said the issue was unlikely to be something that was specific to the city. She said: “Obviously it’s needed but there’s been lots of to-do about this.

“This isn’t something isolated to Liverpool, if you did an FOI to all the local authorities, city region and across the country, there would be local authorities with contracts that are being renewed and extended. We’re definitely not on our own and I just wanted to say that from personal experience as someone who’s had a contract extended like that.”

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