audit

Watchdog to assess council input
Press and Journal – Published: 02/04/2008

AUDITORS are to investigate the use of public money to establish the controversial Highland Housing Fair planned for former greenbelt at Balvonie Braes on the south side of Inverness.

The accounting watchdog Audit Scotland has asked the local auditor to assess Highland Council’s contribution to starting up the not-for-profit development company the Highland Housing Alliance (HHA), which is now deemed a private operation despite substantial funding from the public purse to establish an expo at which a fundamentally private housing development will be exhibited.

Prompted by public concern, including that of various Inverness councillors, SNP MSP Dave Thompson wrote to Audit Scotland requesting an investigation into the sale of land by construction giant Tulloch to the HHA.

Audit Scotland has said it is unable to audit the HHA because it is “not within its remit”. But it is able to instigate an audit of the council, which part-funded the project.

Mr Thompson told the Press and Journal: “I support the fair and wish it well, but I am pleased that my concerns over the land transactions have been taken seriously.

“Audit Scotland has contacted the council’s external auditors so that they are aware of our concerns, and they have been asked to establish the background and to assess whether there are any issues arising from the council’s involvement which require further investigation.

“Of course, the auditors will not consider planning-related matters and those issues reportedly under consideration by the Scottish Public Services Ombudsman (SPSO). But I very much look forward to hearing the outcome of their investigations."

A spokeswoman for Audit Scotland said: “An audit of HHA is not within our remit. However, we do audit Highland Council and have an interest in the council’s arrangements for monitoring how its money is used to support other organisations.

“With this in mind, in line with our routine procedures the correspondence has recently been passed to the council’s external auditors and they will seek to establish the background and assess whether there are any issues arising from the council’s involvement which require further investigation.”

She added: “The correspondence that we received refers to planning concerns and to consideration of issues by the SPSO. We have advised Mr Thompson that the auditors will not consider planning related matters and those issues reportedly under consideration by the SPSO.”