Dumfries and Galloway Council anti-fraud review after road deal deficit

The contract ended up losing more than £4m

A council is reviewing its anti-fraud and anti-corruption policies after a probe into a roads contract which produced a multi-million pound deficit.

The local authority in Dumfries and Galloway had expected the deal to deliver a surplus.

An investigation found no evidence of fraud or corruption but concluded there had been a failure to assess the risks of the contract.

The council is now working on "more robust" governance and accountability.

The external investigation into the contract between Scotland Transerv and the local authority's former trading arm DG First from 2013 to 2018 concluded it had lost more than £4m.

Previous deals had delivered a surplus for the local authority.

'Generally robust'

The investigation found that DG First did not "plan, resource and implement effective financial and performance management arrangements".

It also concluded the council's systems of internal control "did not function adequately" to highlight the issues arising from the contract.

A report to the local authority said its anti-fraud and anti-corruption policies were "generally robust".

However, a review will look at its whistle-blowing policy and mechanisms for the investigation of fraud, corruption, financial irregularity or breach of procurement standing orders.

The findings will be reported to the council early next year.