Damning auditor’s report
By Laura Glenn
Furious Buncrana councillors have demanded answers after the publication of a damning audit report.
The report by local government auditor Patrick McCabe – and seen by Inish Times – raises serious concerns over council practices.
Mr McCabe reviewed the accounts of Buncrana Town Council for the year ending December 31, 2006.
He called for urgent action on a number of issues.
These included a 140,000 euro home purchased without funding.
It also higlighted grants which were drawn down for purchasing homes which were then not bought.
It also describes how no formal agreement had been made between four developers and the council for the provision of social housing.
In the report, assistant county manager and housing director Liam Kelly said this was “an oversight”.
During a review of planning bonds/cash deposits it came to light that in five cases where developments had commenced, no planning bond, cash deposit or other security was received by the council.
This was despite the fact that one of the planning conditions associated with each of these grants of planning states that before development begins, security should be provided.
The councillors expressed their horror at their meeting two weeks ago and at the reconvened meeting last Thursday night.
Councillor Joe Doherty said he was “taken aback” by the report.
He said: “A lot of these things should never have happened. Questions need to be answered.
“This shouldn’t have got to the stage where the auditor asks questions and a document like this is put in front of councillors.
“You [Liam Kelly] need to accept that you need to clear it up. A lot of developers just came in and did what they wanted to do. This is very bad housekeeping. As councillors we should not be reading these comments.”
Councillor Dermot McLaughlin said there were “serious financial contradictions”.
Mr Kelly said it was “normal” for the auditor to make recommendations.
He said: “Current financial regulations are very complex. I am working closely with the finance department and the auditors.
He also said the auditor was coming back “soon”and he would personally provide the council with a report on the situation by June.
At Thursday’s reconvened meeting, the councillors once again condemned the report.
Councillor Doherty asked for a meeting between the Liam Kelly and those concerned to “get to the bottom of this”.
He said: “Certainly what has happened is not what should be done in regards to housing.
“It’s sitting very loose and at the present time it’s very unsatisfactory. I will hold you to that June meeting.”
Councillor Daren Lalor who had previously said his “worst fears have been confirmed” regarding the lack of social housing said councillors do not want to be “fobbed off”.
He said: “Personally, I think heads should roll. It’s scandalous to say the least”.
Mr Kelly rejected this statement.
He said: “I wouldn’t like the message to go out at a public meeting that something scandalous has been done.”
Speaking to Inish Times Mayor Paul Bradley also rapped the assistant county manager over the report.
He said: “I made it clear at the council meeting that, from a councillor’s point of view, the buck stopped with him. In his two roles of assistant county manager and as council housing manager, he is doubly culpable in this.”
“The auditor’s report makes for terribly bad reading.”
Councillor Dermot McLaughlin said the findings of the report “were extremely worrying”.
He said: “This should never have happened and raises serious concerns.
“What is most worrying is that these issues were highlighted in previous audits. We need to know what our present standing is and why and how this happened.
“We await the auditor and the June report.”