Financial probe criticises monitoring of regeneration schemes
The Greater London Authority could see its 拢80m budget cut back as part of a probe into the way regeneration grants were awarded.
An interim report from the Mayor鈥檚 forensic audit committee said 鈥渆fficiency savings鈥� could be made on the GLA鈥檚 budget, particularly the 拢4.7m spent on consultants.
It also said the panel would look at 鈥減otential rationalization鈥� of functions duplicated within the GLA鈥檚 groups and in money handed out by London鈥檚 grant giving bodies.
The investigation was sparked by allegations of impropriety in several projects funded by the London Development Agency. Four projects are being examined by the police while investigations into a further two have been dropped.
The LDA has commissioned laws firm DLA to investigate 25 organisations which received funding for 60 projects.
The interim report said the LDA 鈥渉as been historically an organisation where success was measured by money out rather than objectively observed results鈥�. It said there had been inadequate monitoring of projects in the past and the panel would look at several in depth.
The final report, which will be published in a month, will also look at whether there should be firmer guidelines on the role of advisers to the mayor. Former mayor Ken Livingstone suspended his race adviser Lee Jasper to allow him to clear his name after allegations that he was connected to an LDA-funded community group investigated for financial irregularities. The interim report acknowledged that the mayor鈥檚 advisers are allowed to exert pressure on the LDA in order to help the mayor achieve his objectives. But the report said new protocols may be needed to 鈥渆nable this interaction to occur in an appropriate manner鈥�.
The panel is made up of Conservative council leaders Ed Lister and Stephen Greenhalgh, former Sunday Telegraph editor Patience Wheatcroft, Patrick Frederick, chief executive of corporate funding and advisory company Aimex International, and is advised by Andrew Gordon, head of investigations in PriceWaterhouse Coopers鈥� forensic services group.
