A scandal-hit Dundee City Council department at the centre of an ongoing corporate fraud investigation could be given access to bid for contracts with other local authorities.
Members of Dundee’s policy and resources committee were last night told of developing plans which would see Construction Services granted powers to submit offers for work tendered by neighbouring public bodies and those further afield.
The move, which was first mooted in October 2016, would create a formal partnership between the department and Tayside Contracts – the commercial trading arm of the region’s three local authorities.
Council bosses in Dundee hope to eventually transfer employees from Construction Services to Tayside Contracts to “secure a sustainable long-term future for the service”.
However, difficulties in “harmonising” the terms and conditions of staff has led the council to consider the “alternative approach” of creating the new partnership, which it says will allow the department to access “extended markets”.
Labour councillors last night welcomed the plans but warned an ongoing probe into an £8.3 million deal to supply heat and smoke and carbon monoxide detectors – which was subcontracted by Construction Services – could put off potential customers.
Lochee councillor Michael Marra, speaking on behalf of the Dundee Labour group, called for “full transparency” over the investigation to ensure potential clients know the organisation is “delivering contracts fairly and transparently”.
He said: “I understand it’s an ongoing process but it would be good to know when we can expect that transparency and how we can communicate to all councillors here to the best extent what information is available.
“I think it would be good if we all had the chance to hear from officers as to how that investigation has been undertaken so we ensure people and customers they can have full confidence in the process we have in place and the investigation that is underway.”
Dundee City Council chief executive David Martin vowed to provide information to councillors when the investigation has been completed and give updates as “early as we possibly can”.
The head of Construction Services, Mark Ross, resigned due to ill health amid allegations he was taken on a trip to Spain by bosses of Edmundson Electrical one month after the firm was subcontracted the smoke alarm deal by his department.
Kenny Muir, an electrical estimator, was suspended after his details were handed to investigators and a third employee was allowed to resign in September following allegations he sold council-owned smoke alarms online.
It is understood a number of other staff members are also the subject of ongoing inquiries.
Council leader John Alexander said he expected any answers brought up by the investigation to be reported back to elected members “so any learning that is required is taken forward” but backed the work done by the authority’s employees.
He said: “This report is clearly about the future delivery of Construction Services and I would never want the message to go out that because of the alleged conduct of one or two individuals it calls into question the hard work and quality delivered by hundreds of staff in this city on a daily basis.”
