Police to take no action at Croydon over historic financial mismanagement
A police investigation into historical financial mismanagement and governance failures at Croydon Council will take no further action despite finding potential wrongdoing, breaches of statutory duty and incompetence.
Councillors on the London borough's Appointments and Disciplinary Committee are set to discuss the findings of the Metropolitan Police’s investigation in full on Monday (9 December).
In March 2023, Croydon announced plans to seek legal action against former senior leaders for misconduct, wrongdoing and failures in governance that contributed to the authority issuing three section 114 notices between 2020 and 2022.
The decision saw the London borough refer a set of reports on financial mismanagement, including two independent reports, to the police.
According to a council report on the police’s findings, the force have now concluded “that the actions and/or inactions of elected Members and former officers did not meet the high evidence threshold set out in legal guidance for wilful neglect or misconduct”.
In addition, the evidence failed to meet the threshold for abuse of the public’s trust to such a degree that the offence of misconduct in public office was capable of being made out.
In response to the police’s findings, the report recommended that the council renew its efforts to bring “lasting change” by lobbying the Government to take appropriate action to improve accountability arrangements in local Government.
Councillors are also set to consider confidential legal advice on the council’s response to the Metropolitan Police “on an appraisal of potential alternative action the Council could consider”.
Jason Perry, Executive Mayor of Croydon, said: “The offence of misconduct in public office requires a very high evidential bar and a direct link between the individual and the misconduct.
“Although the police assessment did reference potential wrongdoing, breaches of statutory duty and incompetence, they were highlighted as collective failings rather than individual.
“The situation at Croydon, which is not unique to our borough, has highlighted the very limited powers councils have to hold individuals to account."
The Executive Mayor added: “The law is simply not adequate as it stands. That is why I called on the Government to give councils more powers to hold people in public office to account.
“The Council’s committee will be considering our options and next steps, and I will be asking the committee to agree that we lobby the new government on this issue.”
The Appointments and Disciplinary Committee will separately consider an update on Croydon’s efforts to recover a settlement payment made to its former chief executive, Jo Negrini, who left the council with a £437,000 payout in 2020.
Adam Carey
