Four council staff fired in £1.8m probe into housing repairs ‘scam’

FOUR members of staff at Edinburgh city council have been sacked over an alleged multimillion-pound housing repair scam, it emerged last night.

It is believed the employees were dismissed following an internal investigation into the way contracts were awarded for work relating to statutory notices.

The move follows the launch of a £1.8 million probe two months ago into contracts awarded to some private contractors under the city’s statutory notice scheme.

The system, unique to Edinburgh, allows the council to order repairs to private homes and recoup the money from owner-occupiers.

It was set up in an attempt to safeguard the city’s architectural heritage by allowing the council to intervene and organise repair work on private properties where owners of shared buildings cannot reach agreement.

The value of statutory notices issued by council surveyors has increased dramatically in recent years, from £9.2m in 2005 to more than £30m in 2010. The council also receives 15 per cent of the final bill.

About 500 people have complained about statutory repairs and raised concerns about costs and work they deem unnecessary. The allegations first emerged last year, and it is understood up to 18 members of staff were suspended, with others subject to disciplinary action.

Last night, a council spokesman said: “The council can confirm that four members of staff have been dismissed following a disciplinary process resulting from the current investigation.”

Among the homeowners affected was architect Lorn Macneal, who battled with the council after being served with a statutory repair notice last January to the New Town tenement where he had a flat – cutting the costs of the work from £300,000 to just £40,000.

Mr Macneal, 55, said when he bought his property at the corner of Nelson Street and Northumberland Street three years ago the survey had not revealed any problems.

After a chance meeting with a builder tendering for repairs to the building Mr Macneal discovered that estimated costs for the “essential” repairs was between £250,000 to £300,000.

At a meeting with council officials, Mr Macneal challenged each item one by one. Unusually, the council agreed to hand responsibility for the repairs back to the owners, who were then able to make massive reductions in the bill.

Speaking in October when the probe was launched, Mark Turley, director of services for communities, said: “This is a thorough and painstaking investigation. We will review the specific circumstances of all complaints and try to remedy these. The approach we are taking aims to be open and inclusive, which is essential for both resolving the issues raised and moving the service forward in a way that regains the public’s confidence.”

The council said every complaint would be examined, case by case, in an inquiry that will take two years to complete.

It has not yet been estimated how much the council may have to pay out in compensation, but it has admitted the value of the complaints add up to “many millions of pounds.”

Last night, John Stevenson, branch president Unison, said: “We are unable to comment when it comes to people being sacked or disciplined, because it is sub judice and there is the right of appeal. Suspensions are precautionary and they don’t predict guilt or innocence.”