News / bristol city council

Inquiry demanded into council’s Stepping Up programme

By Adam Postans  Tuesday Nov 26, 2024

Councillors have demanded an independent inquiry into links between Bristol’s former deputy mayor and three companies that the city council paid hundreds of thousands of pounds to provide diversity and leadership training.

It follows a report by finance watchdogs into Bristol City Council’s Stepping Up programme that recommended two improvements in how the authority hires private businesses to deliver services.

But the cross-party audit committee said the recommendations by external auditors Grant Thornton were too “weak” and that many questions remained unanswered and should be investigated by independent lawyers to determine if “anything illegal occurred”.

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Ex-Labour councillor and deputy mayor Asher Craig denies any wrongdoing.

The cross-party audit committee said the recommendations by external auditors Grant Thornton were too “weak” – photo: Rob Browne

Stepping Up was initially created with Craig’s help and support, as an in-house council course, before those behind the programme set up a company in 2018 to run it, paid for by the local authority.

The auditors’ report said that, over the past six years, the council paid more than £600,000 to three different companies, including one with Craig as a director and chair.

It said the former deputy mayor, who left politics ahead of May’s local elections, did not initially declare an interest when she was first appointed and that she used a different name, Jennifer May Craig, to register as a director of the Stepping Up Leadership CIC in March 2020.

The report said that while it was ‘not uncommon’ for councillors to use a different name as elected members as they do in business, it could ‘create the perception that arrangements are not open and transparent’.

Labour councillor Tim Rippington is the chair of the council’s audit committee – photo: Rob Browne

Grant Thornton’s report said the authority did not follow its own rules and procedures on procuring contracts when it hired a company to run the scheme and that a ‘waiver was subsequently approved retrospectively’.

It said the then-deputy mayor had a ‘connection and familiarity’ with the woman running the courses and two of the companies involved, which should have been declared.

Grant Thornton director Beth Bowers told the audit committee on Monday: “For the avoidance of doubt, we did not find that there were any relationships which should have been disclosed but were not.

“We only found that there were perceptions that there were some relationships that should have been disclosed.”

Grant Thornton recommended that ‘the council should ensure that councillors declare their interest as they arise, such as directorships, and consider how close relationships and the use of other names could be declared, and that all contracts should be recorded on its contracts register’.

Asher Craig represented St George West from 2016 to 2024 – photo: Bristol City Council

Tom Blenkinsop, Labour councillor for Avonmouth & Lawrence Weston, said: “I’m a little concerned that these don’t really go far enough.

“This is more or less restating the guidance that already exists which is clearly insufficient in this case.

“Is there an argument for a more stringent review process?”

Bowers replied: “The key distinction to be mindful of here is that through our review we didn’t identify any actual undisclosed matters that we felt should have been disclosed – we identified perceptions.

“We do believe and we have included within our recommendation that there should be some consideration as to how perceptions are considered for these matters.”

Labour councillor Tom Blenkinsop said: “I’m a little concerned that these (recommendations) don’t really go far enough” – photo: Rob Browne

Nicholas Coombes, committee vice-chairman and Lib Dem councillor for Westbury-on-Trym and Henleaze, said “I agree with councillor Blenkinsop that the recommendation you’ve given us – just to use our existing procedures better – is a little weak.

“It’s not just related to an elected member, there were other people involved in the signing off of contracts.

“This is not historical, the Stepping Up CIC contract is still operational.

“Crucially, we want to know did anything illegal occur?

“That isn’t stated bluntly in the report.”

Jonathan Hucker, Conservative councillor for Stockwood, said: “Given the considerable public interest in this issue and the fact that it’s not likely to go away, the council’s best interest would be served by commissioning an independent legal investigation into the Stepping Up programme.

“The public would then have confidence that the council is looking at the issues raised in detail and looking at the issues raised in their wider sense.

“Regardless of the findings of the report, that would provide confidence in the way that the council handles such matters.

“An external independent inquiry is warranted.

“I would favour an investigation by lawyers because the external auditors probably don’t have the legal knowledge required to carry out a full investigation.”

Asher Craig was one of Marvin Rees’ deputy mayors alongside Craig Cheney – photo: Bristol City Council

Committee chairman and Labour councillor for Brislington East, Tim Rippington, said the council’s legal team told him before the meeting that the committee did not have the authority to commission an investigation other than from internal or external auditors.

He said Grant Thornton had already investigated and reported on it, so it would be “morally wrong” to ask them to look into it again for a different answer to the same question.

Councillor Rippington said: “They’ve carried out their investigation independently and they’ve come back with their recommendations.”

Councillor Cara Lavan, Green councillor for St George Central, said: “This is a matter about what’s right and what’s proper, and there is considerable interest and valid concern that there have been shortcuts.

“This requires further investigation.

“There are important questions to be answered.

“You’re saying it’s not this committee that’s going to answer them, but what action was taken after a case like a deputy mayor who did not declare an interest in 2020?

“If that’s not an audit committee question, whose question is it?

“We need answers to those questions, otherwise we risk undermining trust in our political institutions.

“Why did the deputy mayor use one name as a councillor and another as a company director?

“I don’t understand how that’s acceptable and why nobody is asking questions about that.

“Did the deputy mayor make it abundantly clear that these two were the same person, and wouldn’t that be the responsible and honest thing to do?

“What other situations did the deputy name use that alternative name in?”

Councillors have demanded an independent inquiry following a report by external auditors – photo: Hannah Massoudi

Coombes said: “It may be the case that this committee cannot commission an independent review – however, the council can.

“I’m absolutely convinced that this council can appoint an independent review.”

He said the decision could be made at full council.

The committee agreed to meet with the authority’s legal team to discuss the options available.

After the meeting, committee member and Green councillor for Lockleaze, David Wilcox said: “I thank the auditors for their work on this item.

“Their findings make it clear that there are more questions that need to be answered by those that oversaw this procurement.

“I hope that this committee gets answers soon so this distraction can be resolved quickly so that public trust in the council is not reduced any further.”

Former deputy mayor Asher Craig says the audit report’s figures are “misleading” – photo: Bristol24/7

In a statement earlier this week, Craig said: “I appreciate being given an opportunity to respond to the findings of the recent audit report concerning the contractor engaged for a city leadership programme.

“I would like to clarify my position regarding the implications drawn about my relationship with the contractor and the commissioning process.

“Stepping Up was designed as a response to the city’s paucity of diverse leadership within the public, private and voluntary sector in 2017.

“This leadership programme was the first ‘one city’ approach taken by city leaders to address under-representation.

“Whilst I have known the contractor and supported their involvement in the design and subsequent delivery of the programme, it is crucial to emphasise that my actions have always adhered to clear ethical boundaries and professional standards.

“Any suggestion that my advocacy and role as a director of the CIC led to improper conduct is wholly unfounded.

“I am an unpaid non-executive director and as such have not benefited personally.

“I would encourage a careful review of the facts surrounding the commissioning process, as my support for the contractor was based on their qualifications and potential to contribute positively to the city’s objectives.

“I must express my concern that I was never asked for my perspective at any point by the writers of the report and nor was I given a draft before it was published.”

Craig added on Tuesday: “SU is a city-wide programme that has grown exponentially over the years. We now have nearly 800 alumni.

“As a partner organisation, BCC hosted the SU programme for the first 2/3 years until the SU board agreed to become a separate entity.

“The funds quoted in the audit report are misleading, as they do not account for the total income received by BCC from other organisations participating in the programme during this period.

“BCC’s total investment should reflect the number of their staff enrolled each year, rather than the total income generated.”

Main photo: Martin Booth

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