Unit failure bill may be reduced after talks

The unit folded with losses of 13m, equivalent to more than 10 for every resident in the county, after a long-running fraud was exposed following the death of its manager Mike Buckley.

It was operated by the county's four councils which initially agreed to share the cost of filling the financial black hole on a basis based on population size, with Sheffield contributing the biggest sum at almost 6m.

Sheffield Council was responsible for auditing and providing the managerial control of the unit, based in the city suburb of Chapeltown.

Now discussions are going on to establish where finally responsibility for the lost money should rest.

It is understood that Sheffield Council was paid a fee for providing its services to control the operation of the Trading Standards Unit.

A spokeswoman for Rotherham Council said it could not release information because that might "adversely affect Rotherham Metropolitan Borough Council's negotiating position".

She added that: "There are possible negative financial consequences to council tax payers if Rotherham's negotiating position is weakened."

According to Rotherham Council, all four authorities had agreed discussions should remain confidential. Barnsley and Doncaster councils also contributed towards the cost.

Sheffield Council has stepped up anti-fraud training for its managers.

The unit was operated by all four authorities because it had been part of the old South Yorkshire County Council which was disbanded in the 1980s. It was closed in 2006.

Under Mr Buckley, the unit had developed into a business offering services to businesses. It appeared to make money but he disguised its accounts to mask growing losses which had reached 13m by the time of his death from a heart attack.