A "shocking" report has exposed nepotism and potential for "various fraudulent activities" at Swanley Banqueting.

The report says the venue, which provides half the annual income of Swanley Town Council, employed family and friends of the council without proper recruitment or procurement policies.

It was written by independent investigator Richard Penn, who was appointed by Swanley Council’s CEO, through the Local Government Association (LGA).

He spent six months preparing and writing up his investigation - however a Labour councillor has dismissed the document as "a political stunt".

Leader of Swanley Town Council Tony Searles believes a change has come in since a new CEO was recruited in May 2013.

He said: "The figures were of concern to us at the Conservative Party when we were in opposition (before 2011) so we've done a number of investigations.

"But now it’s no longer jobs for the boys.

"We’ve had a sea change in employees - now we think we’re on the right track."

 

Fellow Conservative, Coun Laurence Ball said he found the report's findings "really shocking".

However, Labour councillor Mark Fittock called the report a "political stunt".

News Shopper: Coun Mark Fittock.

He said: "They've spent nine months and thousands of pounds on this report and they found no criminality whatsoever. 

"The investigation has put the workers under a great deal of pressure."  

"Also copies of this report have not been shared with staff who participated in this enquiry."

What did the report reveal?

Mr Penn wrote: "The leadership group on the council had suspected there had been a range of failings by the previous senior management of the council but had been unable to get to the truth of this because of a prevailing culture of silence amongst the remaining staff.

"I was usually required to reinforce the CEO’s message to staff that there had indeed been significant losses. 

"This was often met with disbelief and... puzzlement.

"The same ‘culture of silence’ that had been experienced by councillors in relation to some staff restricted the amount of information I obtained from these interviews.

"The venues appear to have been run by the family and friends of managerial staff (increasing the potential for various fraudulent activities)."

Absent procurement procedures meant "family members and friends being commissioned to carry out a variety of maintenance and other work at the venues... this is wholly inappropriate."

No "clear evidence" of criminal behaviour but the management up until May 2013 "created and sustained an environment in which the potential for loss of cash and materials was ever-present".