Croydon Council’s Appointments and Disciplinary Committee will review the findings of the police on reports on the historical financial mismanagement and governance failures – which led to the Council’s financial collapse in 2020.
A unanimous, cross-party committee decision was made last year to take unprecedented steps to seek to hold former Council officers and elected members to account on these failures. This included referring a suite of reports on financial mismanagement, including the independent Penn and Kroll reports, to the police for them to consider.
The police conducted a lengthy and detailed assessment, which included a review with the Crown Prosecution Service. This assessment will be considered by Croydon’s Appointments and Disciplinary Committee.
The police found potential wrongdoing, breaches of statutory duty and incompetence. However, these were highlighted as collective failings rather than individual. The resulting outcome is that the police will take no further action within the existing powers available to them.
The situation highlights the very limited powers that exist with which councils can seek to hold individuals to account. Executive Mayor Jason Perry has pledged to continue to lobby the new government, on behalf of Croydon residents, on the issue. This is an issue for the whole of the local government sector and needs urgently addressing.
On 9 December, the Council’s Appointments and Disciplinary Committee will consider the findings and any possible next steps.
Croydon has made significant improvements to address the historic financial and governance mismanagement which led to the council’s financial collapse in 2020. The Council introduced new internal controls and more rigorous governance, such as the independent chair of the Audit Committee, amongst other initiatives. Croydon’s government-appointed Improvement and Assurance Panel (IAP) and the Ministry of Housing, Communities and Local Government have both recognised the progress at pace and improvements the council is making.
“The catastrophic failures in governance that led to the Council’s financial collapse in 2020, have been well documented. Our residents are rightly angry that they are paying the price for reckless and poor decision-making, and they tell us that they want those responsible, held to account. The Council’s decision to refer the independent Penn and Kroll reports to the Met police was appropriate, justified and in the public interest.
“These reports provided sufficient weight for the police to conduct a lengthy and detailed assessment. However, the offence of misconduct in public office requires a very high evidential bar and a direct link between the individual and the misconduct. Although the police assessment did reference potential wrongdoing, breaches of statutory duty and incompetence, they were highlighted as collective failings rather than individual.
“The situation at Croydon, which is not unique to our borough, has highlighted the very limited powers councils have to hold individuals to account. The law is simply not adequate as it stands. That is why I called on the government to give councils more powers to hold people in public office to account. The Council’s committee will be considering our options and next steps, and I will be asking the committee to agree that we lobby the new government on this issue.”
Jason Perry, Executive Mayor of Croydon
