Council's construction firm criticised in report
City Building carried out work on the City Chambers, among other buildings
- Published
Significant flaws were found with the management of Glasgow City Council's construction company, a report has discovered.
Whistleblower allegations against City Building kick-started a probe, which uncovered problems with purchasing and HR practices.
The concerns were strong enough that a new executive director was hired in January from outside the organisation as a result.
The company have built five primary schools and four nurseries in the city, as well as carrying out major upgrades to the Mitchell Library, GOMA and the City Chambers.
However, when the local authority's audit team investigated the whistleblower's complaints they discovered "significant compliance matters covering key governance, procurement and HR practices".
An audit report found concerns with top management's "culture towards the role of audit and governance".
The problems have also led to delays with City Building's financial statements in 2021 to 2022 being signed, according to a council paper to be presented to councillors later this week.
As a result of the situation the council and Wheatley housing association, which jointly own City Building Glasgow, decided to appoint an external legal firm to investigate.
The report noted they had "identified a significant deficiency in respect of the overall control environment within the business".
"One of the key issues of concern identified by the external legal firm's investigation was in relation to the City Building Glasgow (CBG) Executive Management and its culture towards the role of audit and governance, which was found to be undermining normal audit processes and relationships."
City Building changes
In response to the external auditor's report and a legal firm investigation, a review of City Building was ordered to be carried out by a newly-established Partnership Steering Group.
Sharon Wearing is now the organisation's executive director, having taken on the role in January.
The new boss has been tasked with installing a "culture of good governance and compliance within City Building Glasgow, demonstrating improved operational effectiveness and improved financial efficiency".
A wide number of changes have since been implemented, including improvements covering audit, board governance, HR and procurement.
The review of City Building - along with details of the changes at the organisation - will be presented to the city administration committee on Thursday.
