Calls for probe into finances of ‘reckless’ Keighley Town Council

A report by external auditors identified a catalogue of weaknesses at Keighley Town Council, much of it focusing on the civic centre and its poor financial performance.

The report said: “In particular we have identified evidence that poor governance has led the council to make decisions without due consideration of its legal powers and, as a consequence, to take actions that may be unlawful.”

It concluded that the council failed to properly safeguard public money and did not comply with financial regulations as it failed to routinely obtain quotes on purchases over £1,000.

The authority also failed to maintain adequate documentation in support of cash receipts and did not ensure payments were properly authorised. Auditors picked up on “mathematical errors” in budget documents.

The report criticises the authority for failing to properly monitor transactions with family members of councillors and employees.

“Such transactions are likely to be subject to greater public scrutiny but the Council’s Financial Regulations do not contain additional safeguards concerning such transactions.”

The report concludes that the council may have acted unlawfully by trading via the museum shop at the civic centre.

It adds: “The Council acted outside of its powers in making payments on behalf of the unincorporated association known as the ‘Police Experience’. In making these payments the Council made a loan which it had no power to make.”

Auditors recommended that the council commissions a review of its governance arrangements.

In response to the report, Elizabeth Mitchell, an objector who raised her concerns with auditors, called the council “dysfunctional, disgraceful and not fit for purpose” and called for it to be taken over.

She said there were a “handful of decent councillors” but called on others to resign.

Keighley MP Kris Hopkins accused the council of “reckless and arrogant” spending.

“It is a catalogue of disaster and those responsible for what has happened – they know who they are – must immediately consider their positions.

“The fiasco surrounding the civic centre and the absence of a proper business plan to guide its operation was bad enough. And now we have host of new charges including a failure to keep a record of cash receipts, making unauthorised payments and failing to properly monitor financial transactions to relatives of Councillors and employees.

“It is not for me judge whether illegal activity has taken place, but the report explicitly states that the Council has taken ‘actions that may be unlawful.’ I have therefore sent a copy to Dee Collins, the Temporary Chief Constable of West Yorkshire Police, and asked for an urgent investigation to be launched.”

A spokesman for the Department for Communities and Local Government said: “Ministers in the department are very concerned by this report, and action clearly needs to be taken by the council to address the clear failures. We are now reviewing whether further steps should be taken in light of this report.”

A council spokesman said a meeting would be called to discuss the report. Police said they had not received any correspondence from Mr Hopkins.