Liverpool council auditors want probe that may examine texts

Auditors have called for a full independent review of Liverpool City Council, which could involve examining the text messages of senior officers.

Commissioners were installed to oversee the council's planning, regeneration and highways departments following a damning report.

Auditors Grant Thornton have now suggested more scrutiny is needed of other council departments.

The development emerged in a meeting of the council's audit committee.

Grant Thornton said it was "unsatisfied" with answers given by the authority about whether there was evidence of problems outside the areas already being reviewed.

Director Andy Smith said further investigations could include examining senior officers' emails and text messages and look at delegated decisions across the council and procurement processes.

Mr Smith told a meeting on Tuesday the arrest of former mayor Joe Anderson in December 2020 was a "game changer" in terms of the level of risk that had to be assessed before Grant Thornton could sign off the council's books.

The auditors sent questions to the council in September explaining they needed more evidence before signing off the 2019-20 accounts.

Mr Smith said the council's written reply on 2 December left them unsatisfied there was "sufficient" evidence to show issues did not extend beyond the areas already examined.

Mr Smith said: "It is likely in our view an independent inquiry is probably needed."

Chief executive Tony Reeves said the council did not "automatically accept" what Grant Thornton had requested and discussions are ongoing, including with the commissioners, on how best to proceed.

Liberal Democrat councillor Kris Brown, chair of the council's audit and finance select committee, said he wanted to know why the auditors, who have overseen Liverpool City Council for a decade, were asking the question at this particular moment.

He said: "They say the arrest of the mayor was a game changer, but it wouldn't have taken much for Grant Thornton to raise these concerns before those events took place. I question whether this is a defensive position or if there are concerns they aren't telling us.

Mr Smith said: "Once the mayor was arrested it has significantly changed the requirements of what we need to do from an audit point of view.

"The approach we're taking is simply to meet the auditing requirements, the auditing standards that we need to comply with, it's not a defensive approach it's us fulfilling our responsibilities."

Independent councillor Peter Mitchell said he found the review request "perplexing".

He added: "Correct me if I'm wrong, you have no evidence at all to support the rationale why you're doing this?"

Mr Smith responded: "We need the evidence that this doesn't go any wider."

It's understood the matter and costs of any independent review will continue to be discussed by council leaders, commissioners and the auditors and will be referred back to the committee at a later date.