Croydon council hires firm to investigate leak of report into financial collapse
By Tara O’Connor, Local Democracy Reporter
Croydon council has hired a firm to investigate the leaking of a long-awaited report about the authority’s financial collapse in 2020.
The Penn Report was completed 18 months ago and was written by the Local Government Association’s Richard Penn.
He looked into the financial mismanagement of the council before it was forced to issue a Section 114 notice, declaring effective bankruptcy.
Despite being completed 18 months ago, the damning report has remained unpublished officially.
However last month, extracts of the report were shown on local website Inside Croydon and in the Municipal Journal.
The council has now instructed Kroll to investigate the leak. This is the same firm the council appointed in March to investigate possible fraud linked to Fairfield Halls and council-owned developer Brick by Brick.
Papers set to be discussed by the authority’s Appointments Committee tonight show that a draft of the Brick by Brick report could be ready by the end of the month.
Papers show the council will not publish the Penn Report until those named in it are given a chance to respond.
It adds: “The council also confirmed that in the meantime publication of the contents of the Penn Report was without the council’s permission and was therefore unauthorised and unlawful.
“It has notified all parties who have stated they have copies of the leaked report of this and requested that they cease all commentary on its contents and return the report to the council. No copies have been received.
“The council has also notified the Information Commissioner’s Office (ICO) of the incident, pending an external investigation into the circumstances of the leaking of the draft copy of the Penn Report. The council has commissioned Kroll to undertake that investigation.”
After the report was leaked, Croydon’s mayor Jason Perry said: “I am still committed to publishing it but we must go through due legal process.
“I am mindful that we protect the council taxpayers’ pocket. The commitment has always been there and remains.”
Pictured top: Croydon Town Hall (Picture: Graham Larter)
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