{"id":76775,"date":"2016-12-02T11:22:09","date_gmt":"2016-12-02T11:22:09","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=1e40618f943d1446910881deb14899d8"},"modified":"2016-12-02T11:22:09","modified_gmt":"2016-12-02T11:22:09","slug":"press-release-sajid-javid-grant-making-powers-return-to-tower-hamlets","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=76775","title":{"rendered":"Press release: Sajid Javid: grant-making powers return to Tower Hamlets"},"content":{"rendered":"
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Communities Secretary Sajid Javid today (2 December 2016) announced plans for a \u2018phased return\u2019 of powers to Tower Hamlets council, so they can now make the final decision on grants awarded to not-for-profit organisations in the local community.<\/p>\n

But Mr Javid warned that the government-appointed commissioners who found a \u2018breakdown of democratic accountability\u2019 in 2014, would continue to oversee these decisions to ensure taxpayer\u2019s money was put to best use.<\/p>\n

The commissioners\u2019 latest report<\/a> to the Communities Secretary shows that, over the past 2 years, improvements have been made. In response, Mr Javid is minded to return these powers to the directly elected mayor as well as plans to end the commissioners\u2019 oversight of procurement \u2013 but said he would halt the process if further concerns were raised.<\/p>\n

Communities Secretary Sajid Javid said:<\/p>\n

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In the past we had a situation in Tower Hamlets where the former mayor was handing out grants against the advice of its own officers, which an election court later found amounted to the corrupt practice of bribery. There was also no monitoring of what hard-earned taxpayers\u2019 money was being spent on.<\/p>\n

Since commissioners have been in place, root and branch reforms mean I am now minded to start a phased return of grant-making responsibility back to the mayor, so these key local decisions can return to those who have been directly elected by local residents.<\/p>\n

This is a positive first step \u2013 but I won\u2019t restore full powers until I can be sure residents\u2019 money is in safe hands and will halt the process if commissioners raise any concerns.<\/p>\n<\/blockquote>\n

Cleaning up a \u2018rotten borough\u2019 to restore residents\u2019 confidence<\/h2>\n

In 2014, an independent inspection of Tower Hamlets council ordered by the government and conducted by PricewaterhouseCoopers warned of a breakdown in democratic accountability and a significant risk of misuse of public funds.<\/p>\n

In response, the then Secretary of State appointed 4 commissioners, led by former Chief Fire Officer Sir Ken Knight, to oversee the running of certain aspects of the local authority, and significant reforms to ensure these failings couldn\u2019t happen again.<\/p>\n

The commissioners\u2019 latest report to the Communities Secretary highlights continued progress at the council, with some areas demonstrating good practice, but warns that there is still \u201cmuch more to be done\u201d.<\/p>\n

In particular, all decisions relating to grants are now taken during specially convened public meetings \u2013 a step which has increased transparency and has been well received by local residents.<\/p>\n

On that basis, the commissioners have made a clear recommendation that grant-making powers be returned through a phased approach, and that the commissioners\u2019 oversight of the council\u2019s procurement processes and practices now ends.<\/p>\n

Further information<\/h2>\n

Under proposals published today for consultation, Sir Ken Knight and his team would continue to:<\/p>\n