The lead commissioner at Liverpool City Council has strongly stated that his team will call on the government to significantly increase its control of the troubled local authority.
Mike Cunningham currently leads a team of four government-appointed commissioners, who were installed to oversee the work of key departments at Liverpool Council just over a year ago. Their arrival was triggered by the revelations of a damning government inspection that revealed huge failings and mismanagement at the Cunard organisation.
But problems at the council have continued to be uncovered, including huge and costly failings over the council's electricity contract. An independent report into that contract today highlighted 'clear and strategic failings at a strategic level' and criticised the leadership of Tony Reeves, who resigned as chief executive last week.
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The initial revelations about the energy contract errors - which are likely to cost Liverpool millions of pounds in extra costs - were followed by the resignation of chief finance officer Mel Creighton. Last week, her former boss Mr Reeves also quit his post.
Today's report, by accountants Mazars, is one of two key reports that will have major ramifications for the council. The other is the official second update from the commissioners, to the government, about where they believe the council is in terms of its improvement journey and whether any further action is required. That report is expected to be published imminently.
Speculation has been mounting that the commissioners next report will call for further interventions. Speaking to the ECHO, Mr Cunningham all but confirmed that the recommendation of his team is that a specific finance commissioner should join them in Liverpool to oversee the key spending decisions of the city council.
Mr Cunningham said: "There are some areas that are very problematic. Our assessment is that the response to the problems has been nowhere near what's required. We are already being supported by a financial adviser and if that position turns into a finance commissioner then so be it.
"We are looking to extend, and its a request, its not our decision, but we believe we can add more value to the council if we have more control over the finances. We understand that if that does happen it will be a significant development. But the facts speak for themselves, council needs to approach its financial management and resilience in a very different way."
With the current team of commissioners already overseeing the key departments of regeneration, highways and property management - a move to bring in a finance commissioner would be a major new intervention and would see the government taking over huge swathes of the day to day running of the city.
There has also been speculation that the commissioners will seek further powers around the hiring and organisation of senior staff. Mr Cunningham said his team already have a role around key appointments but would be seeking to provide more clarity to staff and councillors around how this would work going forward.
Mr Cunningham added: "Both the Mazars report and the report we have submitted to the Secretary of State make clear that there is still a significant amount of work to make this an organisation that the taxpayers of Liverpool deserve."
If another commissioner does arrive in Liverpool, their significant daily fees and expenses will be paid for by the people of Liverpool as the rest of the team's currently are. Asked if this is really providing best value for residents, Mr Cunningham said: "We saw when we came in the scale of the improvements that need to be made and the pace of that change that was needed, its not where we would it expect it to be yet.
"let's be clear here, the cost of the problems uncovered in the (Mazars) report will be potentially millions of pounds. When you expand that out across other areas, it is potentially tens of millions of pounds over recent years that have been mis-spent. We aren't cheap, I fully get that, but if we can help the council to a place where it is spending money properly and in the public interest then that will be a good return on investment for the people of Liverpool."
He said that while additional intervention is likely to be requested, there is currently no suggestion that the commissioners will remain in place in Liverpool for longer than the two more years that have been agreed.
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