Watchdog orders audit of Shetland

Published on Thursday 10 December 2009 21:21

SCOTLAND'S local government watchdog yesterday ordered an investigation into the running and finances of one of Scotland's smallest councils.

The Account Commission called for the probe at Shetland Islands Council (SIC) after the Controller of Audit decided to "qualify" the accounts of Scotland's most northerly local authority for the fourth year in succession.

John Baillie, the chairman of the commission, claimed that the concerns raised by the auditors "may be symptoms of deeper problems at the council".

Four years ago, the Accounts Commission warned the islands council that it could be failing future generations of islanders by dipping into oil reserves to balance its books.

Yesterday, the Accounts Commission announced that it had requested a report to look at the "governance and other aspects of performance" at the troubled council.

Mr Baillie said: "Bearing in mind the council's duties to deliver best value to local people, we have decided to seek further evidence from Audit Scotland on how the council is being run."

David Clark, the council's chief executive, said: "There is no secret that the SIC has a fundamental difference of position with Audit Scotland in certain aspects of financial reporting.

"Beyond that, we are committed to working with them and look forward to meeting with them in due course."