Labour council leader breached code of conduct over financial connection to company director
A watchdog has ruled that a Labour council leader breached ethics rules by suggesting a property director he knew could become chair of Greenock's town board.
Stephen McCabe named Lord Willie Haughey as a potential independent Chair despite the peer being a director of a firm which rented a house to the councillor.
But the Ethical Standards Commissioner said no breach had occurred on the sale of the property or over the rental arrangement.
McCabe, who leads Inverclyde council, was the subject of complaints to the Commissioner.
According to the Commissioner report, McCabe rents his property from a company of which Haughey, a major Labour donor, is a director.
In February 2024, the report states that McCabe informally suggested Haughey as a candidate for the non-remunerated position of Chair of the Greenock Town Board.
The Commissioner stated: 'The Respondent did not declare an interest to the Council officers when he made this suggestion. [McCabe] was not part of the decision making when selecting the candidate. Lord Haughey was selected as Chair of the Greenock Town Board.'
The Commissioner summarised the first of two issues considered as:
'[McCabe failed to declare an interest when he informally suggested that the Council consider Lord William Haughey as a potential independent Chair for the non-remunerated position as Chair of the Greenock Town's Board despite there being a financial connection in that Lord Haughey is the Director of a company which owns and lets the Respondent's property to him.'
The Commissioner concluded that the councillor did breach the councillors' code of conduct on this matter.
He summarised the second issue under investigation as: 'The Respondent sold his property at a price below market value in order to continue living there. As such, he pays no rent or rent which is lower than the market rent to his landlord. Any different may amount to a gift either on a one off or continuing basis which has not been declared.'
The Commissioner said on this issue McCabe did not breach the Code.
McCabe told the Record: 'When I became aware in December 2024 that I may have inadvertently breached the Councillors' Code of Conduct I immediately took the highly unusual step of referring myself to the Ethical Standards Commissioner, more than seven weeks before complaints were submitted by the other two complainers.
"I co-operated fully with the investigation by the Ethical Standards Commissioner, including sharing very personal information about my marriage break-down and my son's mental health.
"I accept the findings of the Commissioner's report and apologise for my inadvertent breach of the Code of Conduct. During 30 years' service as a Councillor, I have never before breached the Code of Conduct. I have received refresher training from the Council's Monitoring Officer on the Code and on managing personal connections.
'I note that the Ethical Standards Commissioner has submitted his report to the Standards Commission for Scotland, and I would hope that considering my self-referral, apology and the refresher training I have undertaken, the Commission will be satisfied that I made a genuine mistake. I am pleased that the Ethical Standards Commissioner has found that I did not breach the Code of Conduct in relation to the sale of my house.'
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