Wolverhampton to hold independent inquiry over failed deal

Wolverhampton City Council is to hold an independent inquiry into how the local authority spent more than £40m, the Express & Star has reported.

The paper said a firm of solicitors in Birmingham would be appointed to investigate a failed deal to overhaul the council’s computers and customer service.

The deal between Wolverhampton and consultancy Axon was scrapped in 2008, with Axon being paid £7.1m in compensation.

According to the Express & Star, legal services are also being arranged to look at how £33m was spent on single status agreements between January and March 2008.

The investigations will look into decisions made prior to May 2008, the paper said, when the Conservatives took control of the council from Labour.

Councillor Wendy Thompson told the Express & Star “there are lessons that must be learned from what went wrong”.

A spokeswoman for Wolverhampton City Council told Local Government Lawyer: “We can confirm that this matter is to be the subject of an independent inquiry and therefore it is inappropriate for us to comment further.”