FINANCE

Exclusive: Bournemouth under fire over Mouchel 'contract'

Official at the centre of row had questioned Bournemouth Council’s controversial outsourcing deal with Mouchel prior to suspension.

The suspended official at the centre of a row over Bournemouth Council's controversial outsourcing deal with Mouchel warned members there was ‘no evidence' the troubled firm would provide services more effectively.

In an email sent to senior councillors on 4 October, obtained by The MJ, chief accountant Stephen Parker questioned the logic of the proposed deal to expand Mouchel's role at the council. He also attacked as ‘misleading' statements made by the senior managers involved, and the ‘high-risk' nature of the proposal.

Bournemouth revealed on 14 October that Mr Parker was suspended on full pay, pending an investigation. It followed further criticism of the Mouchel deal by Mr Parker, sent in a separate email to councillors prior to a key Cabinet meeting on 12 October.

In that second email, Mr Parker stated ‘the cabinet report does not provide an adequate assessment of risks' attached to the proposed deal, or a ‘robust evaluation' of the options. According to Mr Parker the report did not properly consider the rival in-house bid from council staff.

Bournemouth's Daily Echo reported Mr Parker as claiming the report made five ‘errors' or changes in its assessment of that in-house bid.

The paper reported on 14 October that some time after sending the second email, Mr Parker was suspended and escorted from the building. As chief accountant, Mr Parker said, he had ‘a professional duty' to ensure his concerns were considered.

However, The MJ can reveal Mr Parker had already raised concerns. In his 4 October email, he wrote: ‘There is no "evidence" that the contractor [Mouchel] is more capable than the current workforce or would be able to provide a flexible service outside of the defined contract parameters as is currently the case.'
 
The proposed deal involves outsourcing human resources and financial services, for which Mouchel has advised the purchase of a new IT system. Mouchel already provides services across four of Bournemouth's departments.

Mr Parker said he had seen no evidence such a purchase of a new IT system ‘as a matter of urgency is in the Council's best interests, financially, operationally or reputationally'. He added ‘choosing and implementing a new system will be a high risk strategy for the Council'.

Mr Parker also stated: 'All through the business case process senior management were keen to emphasis that "Agresso" [the alternative IT system Mouchel had proposed] was just an illustration. However, we have always known that this is the system the contractor would like the Council to buy it [sic] and that these statements were misleading.'

A council spokeswoman denied staff were ‘misled' by senior management and pointed out the cabinet report recommended ‘a replacement of the existing finance system'.

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