Dundee City Council has overhauled its procurement process two years after a former supervisor was convicted of stealing thousands of pounds of safety devices and selling them online.
Iain Gardyne was sentenced to eight months wearing an electronic tag in March 2021 after stealing almost £8k of goods from the contract services department over a period of four years from 2015.
He resigned from the council in 2019 after his bosses were told of his activities.
The council received compensation in September 2021.
Mr Gardyne took heat sensors, smoke alarms and other devices, then put them on sale on eBay.
In a summary to the council’s scrutiny committee, the executive director of corporate services outlines what measures were taken after the theft was discovered.
This highlights key points of an investigation by the council’s corporate fraud team
into allegations relating to “gifts, hospitality and theft related to smoke alarm
equipment supplied to construction services.”
The paper is among items submitted to the council’s scrutiny committee, which will meet on Wednesday.
‘Cheaper than council supplier’
During the investigation, it was discovered that a framework contract from Scotland Excel priced standard fire detection equipment at lower prices than the local authority’s procurement and construction team had agreed with a supplier.
Scotland Excel is a governed by a joint committee, with members of one or more councillors from every local authority in Scotland.
A framework contract is intended to deliver best value to a purchaser, such as Dundee City Council, keep transaction costs low and in the long run, be beneficial for buyer, seller and the community.
In the case cited in the report, this was not chosen in favour of another supplier.
This was confirmed after: “Officers sought, and received, confirmation by email around the updated prices which provided a saving and also included the disposal of the old detectors free of charge.”
‘New procurement staff’
Following the findings of the report, “procurement staff” including a “category officer, procurement assistant and purchasing officer” were recruited.
New “procurement training sessions” were provided for “key staff” and this will continue “where required.”
Additionally, there has been a “review of procedures” for ordering and when “authorisation has been undertaken.” This will be kept “under review” during a period where “construction services integrate with corporate purchasing systems.”
‘Relocation of stock’
Following the allegations of theft made against the supervisor, council officers undertook a “full stocktake” of smoke alarms and relocated these from a “storage container” to the “main store under the responsibility of the store manager.”
Construction services along with housing and city development staff were then given the “procurement training sessions”.
