2 days ago
Glasgow City Building whistleblower complaints led to new boss
City Building Contracts has built five primary schools and four nurseries as well as carrying out major upgrades to the Mitchell Library, GOMA and the City Chambers.
When Glasgow City Council's audit team investigated the whistleblower complaints however, they discovered 'significant compliance matters covering key governance, procurement and HR practices.'
An audit report found concerns with top management's 'culture towards the role of audit and governance.' As a result a new executive director was hired in January from outside the organisation.
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The problems have also led to delays with City's Buildings financial statements in 2021 to 2022 being signed, according to a council paper to be presented to councillors next week.
As a result of the situation the council and Wheatley housing association, which jointly own City Building Glasgow, decided to appoint an 'external legal firm to undertake a forensic investigation.'
A council report said: 'The City Building external auditor signed the 2021 to 2022 Accounts in March 2024.
'Their Annual Audit Findings Report noted that they had 'identified a significant deficiency in respect of the overall control environment within the business'.
'One of the key issues of concern identified by the external legal firm's investigation was in relation to the City Building Glasgow (CBG) Executive Management and its culture towards the role of audit and governance, which was found to be undermining normal audit processes and relationships.'
In response to the external auditor's report and legal firm investigation a review of City Building was ordered to be carried out by a newly established Partnership Steering Group.
Among actions taken were the appointment of a new boss who began the job in January. Sharon Wearing is now the organisation's executive director.
The new boss has been tasked to install a'culture of good governance and compliance within City Building Glasgow, demonstrating improved operational effectiveness and improved financial efficiency.'
The Joint Review identified a wide number of changes including improvements covering Audit, Board Governance, HR and Procurement.
The review of City Building along with changes at the organisation will be presented to the City Administration Committee on Thursday.
Councillors will be asked to approve proposed amendments to the City Building Glasgow LLP Agreement and other legal agreements as well as other changes to how the organisation operates and control arrangements.
The council paper said: 'In summary, the implementation of the recommendations flowing from the Joint Review will provide for a sustained and reliable workload for City Building Glasgow which will enable it to maintain a skilled workforce supporting the Members' respective property estates.'
