Property repairs scandal to herald shake-up of system

Published on Friday 22 April 2011 14:17

A BUILDING firm gained access to confidential information to blow the whistle on the city council's scandal-hit property repair department, it emerged today.

The tip-off led to a major investigation into how the controversial statutory repair contracts were issued, which has so far resulted in a police investigation and eight members of staff being suspended.

A leaked report into the crisis reveals a major shake-up is under way, with all non-urgent repair notices put on hold and a new system due to be put in place by later this year.

Statutory repair notices allow the council to carry out essential repairs to private properties and then recoup the costs. But they have been dogged by controversy amid complaints of massive cost rises leaving owners struggling to pay for work. The new report, which will go before councillors on Thursday, reveals how a contractor was responsible for sparking the investigation.

Originally it was thought the firm, identified in the special report as Contractor X, used the files to gain information to undercut rivals. However, now it has emerged the contractor is alleged to have used the password of a member of staff to prove the system was flawed.

The report, compiled by the director of services for communities, Mark Turley, admitted the service "suffers from a number of significant weaknesses".

Under the new systems, any cost overruns will be "subject to a rigorous authorisation process", which will be developed by Mr Turley.

Last week, the Evening News revealed that 300,000-worth of roofing work will have to be re-done because substandard materials had been used by at least one contractor.

The report stated that there would be an "intensive review of all contractors within the next eight weeks, followed up by an on-going quality control system in future."

Sarah Boyack, who is running for re-election to the Edinburgh Central constituency, said: "I think it is essential that the system is completely overhauled."We need a robust and rigorous system and the issue of cost control and quality needs to be at the heart of it."

Ewan Aitken, city councillor and Edinburgh MSP candidate, who has campaigned for reform of the system, said: "Finally, the council is beginning to listen, but I hope they are brave enough to make the level of systemic change that's required so that we can use statutory notice properly and not as has happened until now.

"Having senior officials sign off on run-over costs will give a far greater level of accountability.

"It's refreshing to hear the acknowledgement of mistakes, but the crucial issue is what we do with them, and how we deal with some of the consequences of those mistakes, in particular, work that shouldn't have been done, and certainly how work was given out and to who."

A city council spokesman said: "A report is to be issued on a 'not for publication' basis ahead of next week's council meeting and it would be inappropriate to comment."