More financial irregularities?

Recently we asked the question about the contract issued to Jenner (Contractors) Ltd by Folkestone & Hythe District Council, regarding Ross House.

Ross House: Is this another dodgy £1m contract?

For those of you not aware, Jenner (Contractors) Ltd, won two contracts with Folkestone & Hythe District Council. These were:

1  – Heat Pumps and Associated Works at Ross House, Folkestone with an awarded value (without VAT) of £1,024,989. The contract was awarded on the 17 Feb 2022, started on 1 June 2022 and was to end on the 30 June 2023. 

2 – Installation of Scooter Stores at Bradfoord Court, Folkestone with an awarded value (without VAT) of £57,065.10. It was awarded on the 1 March 2023, started on the 13 March 2023 and was to end on the 13 June 2023. 

Together the joint value of the contracts without VAT was £1,082,054. Add on the VAT to these contracts and the amount paid should be no more than £1,298,464.80.

In the last few days the Council have published their May payment to suppliers data; which includes VAT –  the sum paid to Jenner’s up until the end of May 2023, was £1,447,916.15.

This is 11.5% more than the value of the joint contracts even with VAT taken into account, as Jenner’s should have been paid £1,298,464.80 with VAT, but have been paid £1,447,916.15 with VAT, a difference of £149,451.35.

And that is not the only anomaly. When one looks at the Purchase Order data – which does not include VAT – published by Folkestone & Hythe District Council this month, it shows the Council has raised Purchase orders to the value of £1,299,188.06 (without VAT)

A Purchase Order is a legally binding document created by a buyer (the Council) and presented to a seller (Jenner (Contractors) Ltd). It is much like the “cart” on Amazon or Ebay, a purchase order is essentially a list of what you want to buy. It lays out the order details, including quantity and types of products the buyer needs, as well as payment terms and delivery details.

The joint value of the two contracts was £1,082,054, without VAT.

Purchase orders do not include VAT.

The purchase order data shows, £1,299,188, has been raised by the Council. This is a difference of £217,134, which is 20% more than the awarded value of the joint contracts – quelle surprise.

The payment to suppliers sum is £1,447,916 with VAT.

The Purchase order sum is £1,299,188, add on the VAT and one arrives at £1,559,025.60.

Whichever way one looks at this, these two contracts have received more than the awarded sum, with, or without VAT. 

Also one must not forget, the purchase order data and payment to suppliers data  for June and July has yet to be published, meaning it’s possible the sums mentioned herein, could rise again.

Back in Dec 2022, Dr Susan Priest, the Council’s Chief Exec, Amandeep Khroud, the Council’s Monitoring Officer, and the then s151 officer Charlotte Spendley, made it clear that the poor internal controls and financial and contract irregularities would stop, as council officers would receive training as of the 12 Jan 2023. However, it would appear even with the training, nothing has changed and the financial irregularities continue, according to the Council’s published data.

This is the public pound we are talking about, and to us it appears the Council is not looking after it all that well, but as a we so often say, we’ll leave you to make up your own mind, given the evidence set out above. 

The Shepway Vox Team

The Velvet Voices of Voxatiousness