Title

Cheltenham BC wasted £2.1m during its failed bid to sue a former managing director with a mental health condition. The figure, which includes £1m in ‘external costs', was made known to the public on 2 March, when auditors at KPMG published a public interest report into Cheltenham's High Court fraud claim against Christine Laird. By Cheltenham's own admission, the report ‘highlights some key areas where the council could have improved its decision-making'. But KPMG's audit director, Ian Pennington, was less sanguine. He acknowledged Cheltenham had the right to pursue court action, but said: ‘Mistakes were made which, if avoided, may have limited the further costs that the council incurred. ‘There was no single issue or failing, rather there were a series of issues which, taken together over time, created the situation. ‘The council did not recognise this as events were unfolding, and did not respond effectively or early enough.' Mr Pennington revealed the case ‘continues to absorb time, energy, attention and money', and urged some officers and political groups to ‘move on'. The authority had alleged Ms Laird wrongfully withheld details of her mental health history when she took the MD's role in 2002. In 2005, Ms Laird left Cheltenham on an ill-health pension, having been on sick leave. The council pursued a fraud case against Ms Laird and initiated, then dropped, a legal case against her former employer, Rhondda Cynon Taf Council, after concerns about her references. Ms Laird countered she left Cheltenham following bullying and harassment. A judge dismissed both the council's case, and Ms Laird's claim for damages, in 2009. The KPMG study reveals: a lack of clarity in the council's constitution over who should make decisions decisions were made with an over-emphasis on legal matters and not enough on financial, reputational and risk matters ‘potentially crucial' decisions were not addressed Cheltenham did not manage the case as a corporate issue some members were not fully informed about, and involved in, decisions.

Title

WHITEHALL

Suing ex-chief lands £2.1m bill

SUBSCRIBE TO CONTINUE READING