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Wednesday, 31 March 2010 |
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At
tomorrow's meeting of Glasgow City Council the SNP will lead calls for
both a full statement from the council’s Labour leader and an
independent investigation into the recent activities of the council and
its agencies - particularly decisions made during the former leadership
of Steven Purcell.
The SNP in Glasgow have focussed on three key issues that must be
addressed in an independent investigation, to ensure full transparency
for council tax payers and the good governance of the city of Glasgow
council:
- Who in the council - at both elected member and official level -
knew that Councillor Purcell had taken illegal drugs and was at risk of
blackmail; why was no action taken and why was this information
concealed?
- Both the SCDEA and Cllr Purcell himself considered there to be a
risk of blackmail. This raises concerns over the decisions made during
his time as leader and the potential of external influence on such
decisions.
- A series of newspaper reports have alleged that subsidiaries of
Glasgow City Council - set up by Stephen Purcell - directed money
toward the Labour party. City Building has admitted making such
donations. Newspapers have also raised questions over the allocation of
contracts to Labour donors. It must be demonstrated to taxpayers that
council funds have always been spent in their interests and not in the
interests of individuals, friends or donors.
Commenting ahead of the debate Cllr Dornan said: "Labour has dodged
the problems facing their leadership in Glasgow City Council for
weeks. It is now time for them to accept open and independent scrutiny
of their actions in relation to Cllr Purcell’s admission of cocaine use
and potential blackmail and the decisions made during that time.
"The drip drip of scandal and allegation is harming Glasgow’s
reputation and an independent inquiry is crucial if we are to restore
the good name of this great city.
"Labour has its hands on £2.4 billion of public money in Glasgow and
the council tax payers of this city deserve to know this money is being
spent for their benefit and their benefit alone.
"It is only independent scrutiny that can offer guarantees to the
public that the whole affair has been properly investigated. The idea
of the council investigating itself is simply ludicrous - we already
have evidence that it failed to act despite knowing the Council Leader
was at risk of blackmail and, that council subsidiaries like City
Building have donated directly to the Labour party.
"Former Cllr Purcell’s interview has made clear that people within the council knew of his drug use and of the SCDEA’s concerns.
"For people within the council to be aware that the SCDEA – a body that
investigates drugs and organised crime - was concerned their leader was
exposed to blackmail in this way yet not to act is a very serious
matter and of legitimate concern to Glasgow’s citizens. Taxpayers
deserve an independent investigation so they can be assured there has
been no undue influence on Cllr Purcell or anyone else within the
council.
"If Labour is confident they have nothing to hide then there is nothing
to fear from independent investigation and there will be real questions
asked of any party that tries to prevent a bright light being shone
into the corners of Glasgow City Chambers and Labour’s control of this
city.
Notes:
• Some examples of concerns raised since the resignation of Councillor Purcell include:
7th March – newspapers reveal Purcell was interviewed by SCDEA in May 2009 over potential for blackmail.
21st March – Sunday
newspapers report that City Building, a publicly owned arms-length
company set up by Glasgow Council in 2006, has twice taken £2000 tables
at labour party fundraising events.
21st March – The
Sunday Times reports that City Building also gave a lucrative contract
worth up to £11m to company owned by Labour donor Willie Haughey –
despite other firms reportedly offering more competitive bids. It is
alleged that City Refrigeration Holdings (CRH) won a contract to
provide vehicles for City Building despite charging up to 120% more
than other competitors.
21st March – The
Sunday Herald reports that another ALEO, Cordia Services LLP, was used
to pay for ‘lavish’ dinners for Labour politicians including Des
Browne, Lord Adonis and James Purnell. One such dinner cost almost
£900.
26th March –Revealed that Bailie Jim Todd promoted to the newly created position of City Building Vice Chair, at a cost of more than £4000. Bailie Jim Todd was the only Labour Councillor not in receipt of additional allowances through responsibilities
27th March The Herald reports that the Council has dropped plans to
turn it’s Development and Regeneration services department into another
arms length company.
28th March – Sunday
Herald reveals that City Building awarded a 4 year contract for an as
yet unconfirmed amount to AS Scaffolding, owned by Labour donor Andrew
Smillie. The same report states that City Building allowed Willie
Haughey’s refrigeration firm to store refrigerators at one of their
depots.
28th March – News of the World claim former Council Leader Steven
Purcell claimed eight bottles of champagne on expenses after a private
function at the Glasgow Centre for Contemporary Arts. The bill was
almost £400 and was picked up by Cordia.
News
of the World also reports City Building gave board members £100
vouchers for restaurant owned by Labour donor James Mortimer – no
Labour councillor declared the gift.
29th March –Steven Purcell gives an interview to the Sun. The Sun says
Purcell “suffered the emotional breakdown amid fears gangsters had a
video of him snorting cocaine
Following a visit by the Scottish Crime and Drug Enforcement Agency
Purcell adds “I told close colleagues at the council about it because I
think it is important to be honest. They were happy for me to carry on
– with the strict condition it didn’t happen again.
• Prior to the resignation of Councillor Purcell questions were
raised over spending at another Glasgow based organisation –
Strathclyde Partnership for Transport resulting in resignations of two
councillors and the chief executive over expenses claims.
February – revelations
about expenses at SPT force resignation of Chair Alistair Watson and
Chief Executive Ron Culley (former chair of Scottish Enterprise Glasgow). This included attendance at a football match on tickets provided through a contractor to City Building.
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