Edinburgh officials accused of whitewash over property scandal

AN INITIAL investigation into alleged corruption at Edinburgh City Council’s property repairs section was branded a “whitewash” after it failed to get to the root of the scam, insiders have revealed.

Senior officers were said to have covered up alleged malpractice, favouritism, mismanagement and fraud before police and external consultants were brought on board.

It was only when a new director was called in to take over the inquiry that the full scale of the problems began to emerge and several staff were suspended.

Subsequent investigations, details of which have never been made public, are believed to have uncovered widespread evidence of abuse over the council’s “statutory repairs service” for urgent work it says is needed on historic buildings.

Politicians and business leaders are demanding more urgency to clear up an investigation now into its third year, and are also urging the new council administration to show more leadership on the issue following the suspension of one of its highest-paid officials earlier this week.

Dave Anderson, the city development director sent home from work on Monday, is understood to have been heavily criticised in an external consultants’ report ordered after he was removed from the investigation.

It is understood there is no suggestion he was involved in any malpractice – but has been criticised for failing to investigate the complaints properly.

Consultants Deloitte are believed to have found that people were regularly being overcharged, substandard materials were being used, contractors were being given jobs despite not being on an approved list of firms, confidential information was disclosed to certain firms, and council staff received unofficial payments and undisclosed hospitality.

Despite this, in the autumn of 2010, when an official report was brought to councillors, there were protests that serious allegations raised by constituents had not been properly investigated. It was only then that Lothian and Borders Police were alerted.

One source said: “The initial report that came back was nothing more than a whitewash that did not address the serious concerns that had been raised. You have to wonder how many problems could have been resolved if this was addressed much quicker.”

Green councillor Steve Burgess said: “The repairs scandal looms like a cloud over the council. The new administration needs to show that it can blow some of the clouds away fast.

Meanwhile, the Federation for Small Businesses in Scotland has raised concerns at the suspension of Mr Anderson from his post as he had been the main point of contact for firms hit by ongoing tramworks.