Revelations about Stockton Council awarding over £17m worth of contracts without following its normal rules have sparked political debate.
Conservative and Labour leaders have traded criticisms over the evidence given to a council committee, with the Conservatives saying it “raises serious questions about Labour’s grip on public spending” and Labour saying “it is not a free-for-all”.
The Labour-led authority’s people select committee heard last week how 102 contracts, to a value of £17.3m, were awarded in cases where the council made exceptions to its rules about competition, quotes and tenders in the last 18 months.
The council can decide not to follow its rules and make exceptions for good reasons, like urgent works, technical reasons or exclusive rights, but the value of the contracts had “come as a bit of a surprise”, said Martin Skipsey, assistant director for procurement and governance.
He told the committee, which is reviewing procurement and tendering processes: “£17m, we didn’t think it would be that high.”
He gave examples where exceptions to the rules were made correctly, like urgent school ceiling repairs.
He said others might be examples of poor planning or not enough due diligence, adding: “We might want to be better at challenging and making sure we are getting value for money, and not using exceptions inappropriately.”
He also said in construction, £14.6m worth of contracts awarded directly without competition, with some assurance from an existing agreement, and £2.8m worth made under exceptions to the rules were “much higher than I expected”.
He stressed the bulk of construction contracts, worth nearly £60m, were from competition, inviting quotes or advertising from tenders, and even in cases of exceptions or direct awards, the decisions were scrutinised by professionals who challenged prices.
Since the committee meeting, Stockton Conservative group leader Councillor Tony Riordan challenged Labour’s leadership over the evidence.
He said: “That raises serious questions about Labour’s grip on public spending.
“Residents deserve answers: which contracts were involved, why was competition bypassed, who approved the decisions and where is the evidence of value for money? Some exceptions will be justified. But permission to make an exception is not permission to escape scrutiny.
“Labour’s leadership must account for the systems it oversees. If exceptions were necessary, explain why.
“If prices were challenged, show the evidence. If controls failed, fix them.
“This review must examine the contracts and deliver accountability. Conservatives will keep following the money, challenging wasteful spending and demanding answers for Stockton’s taxpayers.”
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Councillor Paul Rowling, the council’s deputy leader and cabinet member for regeneration and resources, responded: “The council has strict procurement rules. If during the procurement process an exception to rules is invoked, it is not a free-for-all like some are portraying, rather rules are followed that govern these exceptions.
“The council is audited each year, and no concerns have been flagged. Like every organisation we are always looking to improve everything we do.
“I welcome the ongoing review into procurement and look forward to the recommendations. My door is always open to discuss procurement or anything related to the council’s finances.”