Tag Archives: City Building

Cronyism – Follow up

Thanks go to Gerry Braiden at the Herald for taking the time sift through the bewilderingly complex details of these quangos.

As an exercise in Blairite civic reform the theory was simple: crack the city state of Glasgow and the rest would fall into line, domino style.

But rather than blaze the trail for Scotland, the creation of arm’s-length companies by the nation’s largest authority has raised more questions about accountability and transparency than provide solutions for weathering the economic crisis or, indeed, providing a model for 21st century public services.

Following revelations that former leader Steven Purcell, who resigned amid blackmail fears and admissions of alcohol and drug abuse, used his network of Aleos to buy the support of friends, colleagues and even some dissidents, it has now emerged that he and his councillor colleagues set their own salaries for sitting on their boards.

When setting up the Aleos, a group including elected members and department officials, would look at what councillors were receiving from sitting on outside bodies such as the SECC, health or fire boards and what the special responsibility allowances – since scrapped for being overused and untenable – were paying. From that they would arrive at a figure they believed best reflected the responsibilities being undertaken in the new Aleo. This would then be approved by the council’s head of finance.

More at heraldscotland

“The sheer weight of numbers means Labour always has the ultimate veto but there is a valid argument that all parties have been complicit.”

Brilliant! Absolutely magnificent!

Because all the parties are involved there’s less chance of it getting sorted, if at all. What a shower of ********!

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Revealed: Cronyism at heart of Purcell’s council

Click to download full view (pdf)

Steven Purcell’s elaborate system of political patronage is today revealed by The Herald, showing how friends, allies and even opposition councillors were paid tens of thousands of pounds to run the network of hived-off companies established by the disgraced former leader of Glasgow City Council.

The wages bill for the dozen or so arm’s-length bodies (Aleos) set up by Mr Purcell during his time as leader ran to almost £400,000 over what it would have cost to pay councillors had the services remained in-house.

It also reveals how some Labour “backwoodsmen” – councillors receiving no special responsibility allowances – were given positions on outside bodies and commanded five-figure sums on top of their basic salaries, while SNP councillors who have fiercely criticised the Aleos recently, have pocketed tens of thousands of pounds from the companies.

Many members of the authority now receive more from directorship fees each year than they do from their basic salaries of £16,234.

The Herald’s investigation comes as ministers order a Scotland-wide review of council spin-off companies amid concerns they are being used to bypass limits on payments to councillors and reward political cronies.

Finance Secretary John Swinney has asked the independent body that recommends councillor pay to investigate how spin-offs such as leisure trusts and arm’s-length companies are boosting salary levels.

Even members of the Labour administration have said that Aleos evolved into a secretive web of political patronage under Mr Purcell, who resigned last month citing “stress and exhaustion”, and has since admitted cocaine use.

More at heraldscotland

BBC iPlayer – Newsnight Scotland