South Wales Evening Post - 7 March 2009
An investigation has been launched into how a feasibility study into a £500 million tram system landed at Swansea Council.
The council’s chief legal officer is now looking at how a seemingly free study from engineers Laing O’Rourke came before a council committee.
The controversial study hit the headlines last month after the council’s environment, regeneration and culture overview board discussed the possibility of bringing the trams systems to Swansea and the surrounding area and looked at the Laing O’Rourke study.
Laing O’Rourke believes the scheme would cost£521 million to deliver. It carried out the free feasibility study as a personal gift to Councillor Holley.
At the time Councillor Holley said: “I was offered a free estimate after a conversation with the engineers when they were working on the LC.
“It certainly wasn’t a case of I’ll scratch your back and you’ll scratch mine”.
Now Swansea Council’s monitoring officer David Daycock is to look into whether rules were broken after questions were raised over the affair.
Swansea Council’s chief executive Paul Smith confirmed an investigation had been launched.
He said: Questions have been asked regarding how the council procured the feasibility study through Laing O’Rourke. I have asked the council’s monitoring officer to look into the circumstances and report back to me.”
Councillor Holley said: “The chief executive has had a number of inquiries about how we came about this study. I have been told that the monitoring officer wants to ask me about how we had this so-called feasibility study”.
Tory Group leader Rene Kinzett said: “The fact senior officers are now investigating the circumstances that led to the report being done for “free” for the leader, then the same report ending up being considered by an official committee of council, is a serious matter.
“It is worrying to think that it’s acceptable to accept a free gift of a report that could have cost tens of thousands of pounds if purchased on the open market.
“It raises important questions relating to ethical procurement, legal and administrative regulations and the political and professional judgement of Mr Holley.
“It beggars belief he thinks he thinks it’s fine to ride roughshod over the council’s normal procurement rules and leave the council open to risk of being seen to owe an outside company a favour.
Interviews are expected to begin on Monday.
We Say… (editorial)
Best laid plans …
It must have seemed a good idea at the time. Council finances are tight, every penny counts and here is a well respected company willing to carry out some research – for nothing.
A feasibility study into bringing trams back to Swansea – and no critical headlines about wasting tens of thousands of pounds on a far-off dream when there are still potholes in our streets waiting to be filled.
Unfortunately, it didn’t work out like that.
Council leader Chris Holley is now facing an inquiry into whether he broke any legal rules or ethical guidelines by asking engineers Laing O’Rourke to carry out the study as a personal favour.
Councillor Holley is quick to point out that the free estimate was for him, not the council. But as a private citizen, he would not be looking into building a £521 million tram system.
While there is no suggestion that there was anything untoward on either side in his dealings with Laing O’Rourke, this episode has not shown Councillor Holley’s professional judgement in the best light.
