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Posts Tagged ‘lutfur rahman’

It’s going to be a busy day for me today so apologies for being brief.

The PwC report is here.

I’m reserving judgment on exactly how “damning” it is. On a first glance there are serious criticisms on council process failures. These could amount, in series, to a damning verdict.

Eric Pickles is due to make a statement at 12.30pm but I suspect a new chief executive is inevitable. He’ll also possibly announce he’s appointing commissioners to take over the grants system and to oversee the sale of council properties.

PwC have certainly found governance failures.

They also hint that too much executive power has been given to one individual regarding the mayoral system. Tower Hamlets may be the extreme example which demonstrates a broader need for improvement in the system.

Politics in Tower Hamlets has been dysfunctional for many years. The arrival of Respect in 2005 blew apart Labour’s monopoly in the borough and that was the catalyst for instability.

The resulting revolving door of councillor defections and swapping of Labour group leaders created a factionalism that even highly regarded senior council officers found difficult to deal with.

We then had the worries over the influence of the Islamic Forum of Europe and its links with certain councillors. Then we had the Respect-led petition which paved the way for the directly elected mayoral system.

And then the Labour party imploded with the row over the selection of Lutfur Rahman.

So Lutfur became a powerful executive mayor as an independent without the checks and balances of a party group. He hired a brand new mayoral office, and that created its own power plays at officer level in the council.

On top of that, he was an angry man under extreme pressure, with one fundamental aim: to get re-elected.

I think he was then badly advised. He took direct control of grants and was surrounded by fawning bidders from external groups.

The dysfunctional politics also meant that when Kevan Collins resigned as council chief executive in 2011, we had an almighty bun fight over his successor.

In short, the successor never happened.

And we’re here today.

Note that East End Life was not examined by PwC and nor were nine examples found by the council of possible fraud in the delivery of youth service grants.

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Exactly seven months after Eric Pickles ordered Government-appointed inspectors to examine the books at Tower Hamlets council, the Communities Secretary will tomorrow publish their findings.

The report from PricewaterhouseCoopers will be published on the DCLG website at 9.30am, just as a written ministerial statement is made in the Commons.

Three hours later, the minister himself will make an oral statement in the chamber outlining the Government’s response.

Only a handful of people know what’s in the report: ie at PwC and at the very top of DCLG.

At this time of writing (about 8.20pm Monday), even Mayor Lutfur Rahman does not know what’s in it. It may be that the report has been sent to the council’s Head of Paid Service, Stephen Halsey, but even that’s not clear. Presumably, Mr Halsey would have to brief Lutfur if he had received it.

So anyone claiming they’ve heard this or that about the report’s findings is quite likely spreading unfounded rumours.

However, it would be a surprise to almost everyone if Eric did not announce he was imposing a new chief executive on the council…at the very least.

Clearly, whether he goes further depends on what has been found.

Lutfur’s camp believe, from the various questions they’ve had to answer and check during the past seven months, that any direct Government intervention, eg the appointment of Commissioners to run procurement and grants, would be vulnerable to a legal challenge.

So we could see more taxpayers’ money spent on legal bills….on top of the cash currently going on lawyers for the judicial review of Eric’s original decision, a hearing due at the High Court on November 14.

When Eric made his initial announcement on April 4 (four days after the Panorama programme), the council “welcomed” the chance to clear its name.

Here’s that statement:

We welcome the opportunity to demonstrate that council processes have been run appropriately and to date we have seen no evidence to suggest otherwise. This inspection affords the borough the best opportunity to demonstrate that the borough has acted in the best interests of all residents. We will release further information in due course.

Well, you could say they had a funny way of showing it. There’s a feeling in Whitehall that the council deliberately dragged its heels over supplying information to the auditors.

As I’ve noted before, the inspection has been trying to determine whether the council has achieved “best value” with the public’s money. Handing it to lawyers to try and block that process didn’t go down too well. It fed a narrative.

Has there been any fraud? I have no idea. Certainly, Panorama never made that allegation….although their team did find evidence of a fraud linked to the Brady Youth Forum, as mentioned here.

If the PwC report hasn’t found fraud, expect the Lutfur line to be “I told you so”.

But I’d be astonished if there isn’t severe criticism of the council tomorrow.

A minister like Eric Pickles just doesn’t make oral statements to the Commons so he can have egg chucked in his face.

So over to you, then, Eric, me old chum.

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This is a guest post by Andy Erlam, one of the four Tower Hamlets election petitioners (along with Debbie Simone, Azmal Hussain and Angela Moffat). It’s a response to my blog post yesterday, here.

It is kind of Ted Jeory to give some more uninvited advice about how we best manage the Election Petition case.  However, we are sure Commissioner Mawrey QC does not need his instructions interpreted by Ted.

The Commissioner has announced that he may allow statements to be included in the case without the names and addresses being revealed to Lutfur Rahman or John Williams or their legal teams. This is a significant development which we had a duty to inform the press and the public of.

There are some other inaccuracies in Ted’s account, which is not surprising as he did not attend the Press Conference.

Who did attend, we are told, was a spy for Lutfur Rahman, an uninvited solicitor, a trespasser in fact, so Ted may wish to check with him/her.

The comment made by Janet Digby-Baker OBE was slightly misquoted. The case she was referring to was another case and she made it to illustrate how nasty intimidation can become.

Of course, the intimidation and the threatening of witnesses is itself an extremely serious criminal offence, punishable by imprisonment on conviction.

This is the worst way to show contempt for the court and we will not shy away from reporting each and every reported incident to both the court and to the police and carefully monitor progress of any investigation. The police have not yet covered themselves in glory in this case, but we live in hope.

We will respect the court but we expect our opponents to respect the people.

The Scrutiny of the entire mayor election vote starts in the High Court on Monday morning November 3 and as it takes place in the Royal Court of Justice, we can expect that it will be a sedate affair with special care taken towards transparency and due process.

We leave it to your readers to decide whether this will be better than the Tower Hamlets election count of May 23-27.

Instead of sniping ‎from the sidelines, Ted should get back to some quality investigative journalism:

Who is financing Lutfur’s hugely expensive legal team?

Are we certain the Tower Hamlets ratepayer isn’t somehow financing Lutfur’s legal team?

What does the PwC report show and recommend?

Surely a leak from PwC can be organised? I am reliably informed that LBTH has tried to “lean” on PwC which if true is surely another gross miscalculation.

‎Ted predicted wrongly that we would be laughed out of court at the initial High Court hearing in July.

In fact, the unwise attempt to have the case struck-out supported by 10 QCs and solicitors ‎(yes 10 and some paid for by the tax payer) against our brilliant barrister, Francis Hoar, was thrown out of court.

A further High Court Challenge over the PwC report, also paid for by the Tower Hamlets taxpayer, was later rejected by another judge as “hopeless”.

That has not deterred the mayor from seeking another expensive oral hearing which will take place on November 14.

Ted may be impressed by famous QCs but we will not be intimidated. Taking on hugely expensive lawyers is not a sign of strength, but of weakness.

We are not frightened of anyone.

Comment by Ted Jeory: I’m a bit puzzled that a petitioner who is going to court over allegations of impropriety is urging someone in PwC to leak an official report. I think Andy is right to ask who is funding Lutfur’s legal team; maybe he should set down a marker and fully disclose who is funding his own team.

I maintain that the petitioners are brave…but they’d perhaps be wiser to do their talking in the courtroom (as I think Richard Mawrey QC would prefer).

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You may well have read yesterday that Richard Mawrey QC, the judge in the forthcoming Election Court petition for Tower Hamlets, had apparently intervened following allegations of witness intimidation.

The petitioners had hosted a press conference in Brick Lane on Monday evening to outline their concerns.

The petitioner’s chair, Dame Janet Digby-Baker, who runs a fostering agency in Mile End, said they had been told by at least one witness that their families in Bangladesh would “would be hurt” or even “killed” if they did not withdraw their statements.

According to a thoroughly confused report of the press conference by Breitbart London, here, these allegations had caused Mr Mawrey to make a ruling that “witnesses’ names and addresses will no longer be made public”.

An accurate report appeared online at The Wharf, where Rob Virtue wrote:

Petitioner Andy Erlam said another man who had complained to the petition that his postal ballot paper had been stolen had been “approached by strangers six or seven times on the street and aggressively confronted about ‘why he was attacking the mayor'”.

“I’ve seen he’s partially withdrawn his statement in evidence,” said Mr Erlam. “Why would someone complain to the police, talk openly to us, although nervous and frightened and then withdraw? It is something we’re going to have to sort out in court.”

Mr Erlam said Richard Mawrey QC, the Commissioner in the trial, had this week made the decision to allow anonymous witness statements in light of the accusations The group also appealed for victims of intimidation to contact the police.

The petitioners made clear that they were not in any way connecting Mayor Lutfur Rahman to the allegations.

Their claims at the press conference were based on an email Mr Mawrey had sent to the petition parties on Monday, when he wrote:

…I have the power in circumstances where I feel that a witness may be subject to intimidation or reprisal if he gives evidence to allow that witness to give evidence with his identity disclosed only to to the court and not to the other parties (or to the other parties’ lawyers only). I have exercised that power in the past and would do so again.

As a result of the news reports, Mr Mawrey, who is surely now beginning to realise what it’s like operating in Tower Hamlets, today sent a further email to the parties to the record straight.

He wrote:

If, at he hearing, I am satisfied that there has been or may be a risk of intimidation, I have the power to hear evidence in camera or to permit identities of witnesses to be withheld from the parties and the public.

I have not, of course, said that I am currently satisfied that there is such a risk or that I shall make any such order and I hope this is clear to all parties.

This appears to be a judicial expression of judicial irritation.

The petitioners might not have judged Monday’s public move particularly well. In his first directions order at the outset of the proceedings, Mr Mawrey wrote:

I appreciate that this petition is hotly contested and all parties feel strongly about the issues raised in it.

I would strongly counsel the parties (and that includes the second respondent) not to attempt to fight these battles in the media, social or otherwise. [My italics]

The issues are now sub judice and I consider that they should be treated as such even though petitions do not involve juries.

The petitioners may have “missed the memo”, so to speak.

As it happens, they may well have to up their game because Lutfur has just appointed a new barrister.

Jonathan Laidlaw QC, described (on his chambers’ website) as “one of the country’s leading silks”, is now acting alongside his more longstanding counsel, Helen Mountfield QC.

Laidlaw, who successfully defended former News International boss Rebekah Brooks in the phone hacking trial, has been hired to provide clout on some of the allegations of criminality in the petition.

Mountfield, who acted successfully for Lib Dem Elwyn Watkins against Labour’s Phil Woolas in the 2010 Oldham East Election Court petition, is considered more of a public law specialist.

It’s not yet clear whether both will act during the court hearing itself, which is expected in the New Year. It depends on which parts of the petition Mr Mawrey allows through to the courtroom.

It’s also worth noting that both silks are extremely expensive, Laidlaw particularly so.

And it’s also worth re-emphasising their fees will not be paid from public funds.

This is entirely a private risk for Lutfur, who faces possible bankruptcy if he loses.

However, he has set up a fighting fund to help cover his legal fees. I don’t know how much he’s raised or who the donors are.

Neither am I clear whether the fund or its backers must be declared publicly, eg on Lutfur’s register of interests. Can anyone help with this?

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I keep being asked what’s the latest with the PwC report that Eric Pickles was due to announce in the Commons last week.

The answer is that it’s all a bit unclear.

I’m told Tower Hamlets council, with a certain “coup de theatre“, dumped a whole load of new documents on the PwC auditors at the very last minute of the report’s preparation (and five months after the investigation started).

This has caused something of a delay.

Parallel to this is another potentially interesting little conundrum. At the end of August, High Court Judge Sir Kenneth Parker declined an application from the council for a judicial review of the decision to send in the auditors in the first place.

In his written ruling, he used the word “hopeless” to describe one of the council’s arguments. He firmly rejected the other grounds as well. His ruling is here:

3 - Tower Hamlets Judicial Review Judgement

3a - Tower Hamlets Judicial Review Judgement

However, as The Wharf reported in September, the council was undeterred and applied for an oral hearing before another judge.

This has been granted and a date has been fixed for next month.

Here’s the question I’ve asked…Surely it would be illogical to publish the report ahead of that judicial review? If the court rules in favour of the council, ie it rules it was unlawful to send in PwC, then surely that would mean the report itself was unlawful in some way?

Put it another way: what would be the point of the JR hearing if by that time Eric Pickles had already published the report? Would that hearing then be obsolete in practical terms? If the report was so damning that Eric determined intervention was necessary, could that intervention then take place if the JR rules his original decision was unlawful.

He’d be in a bit of a pickle, and embarrassed politically.

Wouldn’t the council’s lawyers want to apply for an injunction on publication of the report prior to the JR hearing? Camp Lutfur Rahman is keeping quiet on the matter.

Sources in Eric’s Department for Communities and Local Government, meanwhile, say the two issues are separate. But I do wonder whether they might wait until after the JR.

Maybe one of the learned readers out there can help?

As for the Election Court petition, that is still going ahead. I’m being told by town hall sources it’s likely to happen in January, although the venue is still unconfirmed. It’s quite possible it won’t take place at the town hall in Mulberry Place after all, but at another building that can accommodate an accompanying media and public circus.

York Hall, the famous boxing venue in Bethnal Green, might be one (very appropriate) option.

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Oliur Rahman

Cllr Oli Rahman manning a PCS picket line in Stratford today

The below piece is on the Express website here.

THE Deputy Mayor of the controversial east London borough of Tower Hamlets was yesterday marched from his civil service workplace after concerns about his political activities.

A security guard was ordered to ban Councillor Oliur Rahman from entering the Job Centre Plus office in Stratford, east London, where he works as a benefits adviser.

His bosses at the Department for Work and Pensions said he could no longer perform the role, one he has had for 14 years, due to hypothetical concerns about political neutrality.

They claimed his high profile role in Tower Hamlets politics meant he was more likely to be recognised by people he dealt with in the job centre, even though he works in the neighbouring borough of Newham.

The DWP argued Mr Rahman was at risk of being accused of political bias in his day job.

It said this risk had increased following his appointment as deputy to Tower Hamlets Mayor Lutfur Rahman, who is currently the subject of Government and national media attention.

Mr Rahman’s bosses said they were acting on the direct advice of the Cabinet Office, which yesterday confirmed it supported their decision.

They said he was being transferred to a non-frontline role away from jobseekers at another office in Stratford.

Their stance and the decision to call in a security guard triggered a blazing row at the Job Centre yesterday.

It caused Mr Rahman, who is also an official at the PCS union, so much stress that he vomited and hyperventilated.

His bosses were so concerned they called an ambulance.

Paramedics treated the councillor but he declined to go to hospital.

PCS officials believe the DWP is “politically targeting” Mr Rahman.

He was today manning a picket line at the Job Centre Plus in a campaign against Government cuts.

Yesterday’s events were the culmination of a long-running dispute.

He has worked for the DWP for 14 years and has been a councillor since 2004.

Until 2010, he worked at the Poplar Job Centre in Tower Hamlets but he was then moved to Stratford after a complaint from an opposition party which claimed he could be trying to exploit his job for political purposes.

He has served in Lutfur Rahman’s cabinet since October 2010.

It is understood no complaints have been received about his dual role in that time.

However, DWP became increasingly worried.

According to Mr Rahman’s supporters, his bosses tried to transfer him out of London altogether.

Mr Rahman opposed the proposal and wrote to the Civil Service Appeal Board.

On October 28 last year, the board ruled in Mr Rahman’s favour.

It told the DWP that were he to be re-elected as a councillor in May 2014, he should be allowed to stay in his frontline role in Stratford.

After his re-election as a Tower Hamlets First party in May, his boss Lutfur Rahman made him his deputy.

The DWP believes his “elevated role” as deputy mayor of a borough receiving so much attention nationally has created a tipping point.

His bosses sought renewed guidance from the Cabinet Office, which has now told the DWP it can overrule the Civil Service Appeal Board decision.

When Mr Rahman objected to the proposed back office transfer earlier this month, the DWP suspended him–a decision it rescinded just days later following advice from HR professionals.

However, the department’s bosses continued to insist he move to the new role.

Mr Rahman is now understood to be consulting lawyers.

His friends also point out that the national attention on Tower Hamlets Council is not of his making.

They say it is largely due to a decision by Communities Secretary Eric Pickles, who ordered Government inspectors to examine the borough’s finances last April.

In a statement, Marjorie Browne of the Public and Commercial Services Union, said: “For the best part of four years Mr Rahman feels he has been subjected a series of targeted behaviour from the senior management of the Job Centre Plus (JCP) without any foundation or complaint from any clients.

“He feels politically targeted for simply being a councillor and politically active within Tower Hamlets.

“The fact that senior management from the JCP are going against their own Civil Service Appeal Board’s decision says everything one needs to know about this case.”

A DWP spokesman said: “Every day our Job Centre Plus staff are successfully helping people into work.

“It’s important that they remain politically neutral, which is why we can’t have elected politicians in frontline roles.”

A Cabinet Office spokeswoman said it “supported” the DWP decision and added: “The Civil Service Code requires all civil servants to act with political impartiality, and to comply with any restrictions laid down on their political activities in line with the Political Activity Rules.”

Mr Rahman said he was unable to comment.

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east end life

Bundles of East End Life left in the rain at the Bow distribution depot in 2012 (copyright Ted Jeory)

Is the end in sight for East End Life? It’s been predicted many times before.

But last Friday, Eric Pickles’s Department for Communities and Local Government quietly announced its latest move against 11 councils which continue to publish freesheets more regularly than the Government would like.

Not surprisingly, Tower Hamlets council’s weekly version–which has been the prototype for so many others, which costs far more than the council claims, and which drains vital funds from frontline services–is one of the top targets.

Ministers have given the council until October 9 to respond to their demands the paper should be published no more than four times a year. After that, the department will consider legal action.

Let’s quietly note that the deadline comes the week before Eric Pickles is due to stand up in the Commons and announce the outcome of, and any action arising from, the PwC report into ‘best value’ spending at Mulberry Place. East End Life was part of PwC’s remit.

The letter sent out by DCLG last week is scathing. It says Tower Hamlets is failing to abide by the local government Publicity Code. The council strongly contests this and claims East End Life is popular and serves a public interest. The council says EEL reaches hard-to-reach groups.

DCLG, on the other hand, maintains there are other ways of communicating with such groups and notes the council’s own boasts that broadband access in the borough has risen to 85 per cent.

The government also wants a “flourishing…independent and politically free local media” and argues East End Life works against that. It effectively says East End Life is biased towards Mayor Lutfur Rahman (as it was to the former Labour administration until October 2010).

It says other councils manage perfectly well with quarterly news-sheets, and were there to be any special circumstances in Tower Hamlets, these would justify no more than a couple of extra “special editions” in any year.

The London boroughs of Enfield, Greenwich, Hackney, Hillingdon, Lambeth, Newham and Waltham Forest, as well as Luton, Medway and North Somerset councils have received similar letters.

This is what Local Minister Kris Hopkins says:

Frequent town hall freesheets are not only a waste of taxpayers’ money but they undermine the free press. Localism needs robust and independent scrutiny by the press and public.

Councillors and political parties are free to campaign and put out political literature but they should not do so using taxpayers’ money.

This is the eleventh hour for 11 councils who we consider are clearly flouting the Publicity Code. They have all now been given written notice that we are prepared to take further action, should it be necessary, against any council that undermines local democracy – whatever the political colour.

And here are some extracts of the letter to Tower Hamlets council, the full copy of which I’ve attached below:

The basis of the Secretary of State’s proposal 

Information available to the Secretary of State indicates that the London Borough of Tower Hamlets does not attach sufficient importance to ensuring the lawfulness of its publicity. In January 2013 Ofcom concluded that an advertisement, showing the Mayor associated with the house building programme in the borough, was a political advertisement rather than a public service announcement and so breached section 321(3)(g) of the Communications Act 2003 and the UK Code of Broadcast Advertising. The Secretary of State is not aware of any subsequent acceptance by the London Borough of Tower Hamlets of the unlawfulness of this publicity or any firm public commitment of the Council to ensure the lawfulness of all its future publicity and accordingly is proposing the Direction above in relation to the specified provision on lawfulness. 

The balance which, with the approval of Parliament, the Publicity Code strikes is that the newssheets etc. of principal local authorities should be published no more frequently than quarterly. Moreover the Secretary of State recognises that the great majority of councils already publish their newssheets no more frequently than quarterly, notwithstanding the wide range of groups that display protected characteristics in the areas of many councils. 

Officials from the London Borough of Tower Hamlets wrote to the Secretary of State arguing that following a review of ‘East End Life’ in 2011, the publication was redesigned, TV listings were removed and the publication was made shorter. They also argue that ‘East End Life’ is the most cost effective solution as the weekly publication aims to run on a net-nil budget.

The Council notes that cost effectiveness in one of the seven principles in the Publicity Code, and that advice taken by the Council in 2011 and a finding by the then District Auditor indicated that the decision to proceed with weekly publication was lawful and justified having regard to the provisions of the Publicity Code. The Secretary of State’s provisional view is that these arguments do not sufficiently outweigh the case for as far as practicable maintaining an environment as conducive as possible to the flourishing of an independent and politically free local media, which is an essential element of any effectively operating local democracy. 

The London Borough of Tower Hamlets has not drawn to the Secretary of State’s attention any other special circumstances that could justify a departure from the frequency recommendations of the Publicity Code nor is the Secretary of State aware of such circumstances. Moreover, in any event, the Secretary of State considers it likely that were there to be any such circumstances, these would only justify one or two extra ‘special’ editions each year.

Public sector equality duty 

In considering the impact of any direction on the London Borough of Tower Hamlets’ public sector equality duty, the Secretary of State has noted that the Council consider that a printed weekly newsletter is “particularly important amongst those seeking work, older white residents and BME residents”.

The Council also state that there is reliance upon ‘East End Life’ by “key demographic subgroups in the Council’s area which, if there was no weekly publication, would otherwise have limited access to relevant information”. The Secretary of State also notes that the Council state that broadband access in Tower Hamlets has increased to 85 per cent and that the Council “would willingly negotiate a manageable timescale for transition to digital delivery”. 

The Secretary of State recognises it may be the case, as the London Borough of Tower Hamlets have commented, that some groups in the community that display particular protected characteristics, such as age, disability or religion/belief will less readily be able to obtain the information currently circulated in ‘East End Life’ and hence all other things being equal could be adversely impacted.

However, the Secretary of State believes that it is open to a council having such protected groups to effectively communicate as necessary with them about the services and other matters which are the responsibility of the council without publishing newssheets more frequently than quarterly.

The Secretary of State recognises that the great majority of councils already publish their newssheets no more frequently than quarterly, notwithstanding the wide range of groups that display protected characteristics in the areas of many councils.

Moreover, even if there is an adverse impact the Secretary of State’s provisional view is that the proposed Direction would be justified because of the Government’s overriding policy of maintaining across the whole country an environment that is conducive as possible to the flourishing of the independent and politically free local media. Such media is an essential element of any effectively operating local democracy and hence the pursuit of this policy is a high priority.

DCLG explains that publicity by local authorities should:

  • be lawful
  • be cost effective
  • be objective
  • be even-handed
  • be appropriate
  • have regard to equality and diversity
  • be issued with care during periods of heightened sensitivity

It does not inhibit publicity produced by political parties or councillors at their own expense.

And it says, “On appropriate publicity the Code states that:

Where local authorities do commission or publish newsletters, news-sheets or similar communications, they should not issue them more frequently than quarterly, apart from parish councils which should not issue them more frequently than monthly.

Here’s the DCLG letter to the council’s head of paid service, Steve Halsey.

And here are some more pictures of council waste:

East End Life

Copyright Ted Jeory

East End Life

Copyright Ted Jeory

East End Life

Copyright Ted Jeory

East End Life

Copyright Ted Jeory

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My apologies for being relatively quiet over the past few weeks. Normal service will resume pretty soon.

In the meantime, here’s an update on the PwC report.

Earlier this week, Jim Fitzpatrick asked Eric Pickles in the Commons for an update.

Jim Fitzpatrick: The Secretary of State commissioned PricewaterhouseCoopers to conduct an examination of the finances of Tower Hamlets council. Tower Hamlets council will be paying for that audit. Will the Secretary of State update us on how long it will be before the auditors report?

Eric Pickles: We are talking in terms of a matter of days. I understand that the consultants have finished their report, but the facts will have to be checked with Tower Hamlets, and only when that process has been completed will I be briefed on it. I shall then have to make a “minded” statement, because Tower Hamlets will obviously have the right to respond before I make a final statement to the House.

Actually, Eric “misspoke” slightly when he said a “matter of days”.

The Department for Communities and Local Government has just issued a statement detailing the next steps.

As the council’s head of paid service, Steve Halsey, announced to staff this week, PwC’s team of up to 25 inspectors have now “withdrawn” from the town hall.

Their fieldwork was completed on September 8. They are now into the fact-checking phase. This means extracts of the facts contained in PwC’s draft report are being sent to interviewees (ie Mayor Lutfur Rahman and officers etc) for fact-checking.

It is expected this process will take 10 working days. Responses and comments will have to be returned to PwC by September 25.

The report might then have to be amended; while this phase has in theory no time limits, it’s unlikely to take more than two weeks. The report will then be sent to both Eric Pickles and the council.

Pickles will then consider what action, if any, he will take. He’ll probably make his decision within 24 hours before issuing a statement to the Commons. The PwC report will also be published at that point.

It is expected this statement and publication will take place in the week beginning October 13.

What actions might Eric take? Well, certain “direct functions” might be removed from the council and instead placed under the direct control of the Secretary of State, or independent commissioners appointed by him.

In other words, special measures. This might well be the grants or procurement processes, for example…but that’s purely my speculation.

Many in Tower Hamlets, including within Lutfur’s camp, believe Eric will at least impose a new council chief executive and relieve the clearly overworked Stephen Halsey from his head of paid services duties.

Camp Lutfur, and some senior Labour figures, also doubt whether the PwC report will, beyond installing a new chief executive role, contain anything more than a few rapped knuckles over processes.

This language tends to downplay the importance of following “processes” in local government spending decisions…

Jim Fitzpatrick and Lutfur’s team are also openly worried and critical of the potential £1million cost of the PwC report. As things currently stand, those costs will be charged directly to Tower Hamlets taxpayers.

It is inconceivable this will happen in reality. If the report finds governance failures, it will surely be sensible politically for Eric to announce that Whitehall will pick up the tab: why should innocent Tower Hamlets taxpayers face the double-whammy of suffering poor governance AND the cost of detecting them?

Meanwhile, Lutfur seems to be carrying on oblivious. Over last few weeks he’s been concerned with the important matter of choosing his next chauffeured car.

Nine days ago, this Volvo V60 Estate D6 AWD Plug-in Hybrid 5dr (Price £49,975) was seen in his town hall parking spot.

Mayor car[1]

A Toyota Prius hybrid (as I predicted here in May) has also been seen in that space.

A council spokesman said:

We are currently exploring  a range of transport options to assist the Mayor in his duties. As part of this process the more efficient and environmentally-friendly hybrid cars are being considered as a potential option.  

A car is necessary because the Mayor seeks to maximise his accessibility to the electorate by going to them rather than requiring them to come to the Town Hall. 

Most recently the Mayor trialled a more environmentally-friendly Volvo hybrid D6 for three days, at zero cost to the taxpayer.

But when I asked what other cars he’d tried out, Takki Sulaiman’s press office told me to submit a Freedom of Information request.

Which says something about attitudes towards openness and what they consider the “best value” for taxpayers’ money.

PS.. Sadly, I wasn’t at last night’s full council meeting, which didn’t fail to live down to its usual standards. Lutfur and his Tower Hamlets First party staged a walkout rather than debate why the council has spent money applying for a judicial review on DCLG’s decision to send in PwC. All councillors were apparently told by interim monitoring officer Meic Sullivan-Gould they risked jail should they breach the Contempt of Court Act in debating the issue.

The East London Advertiser’s Mike Brooke has the full story.

And here is the full text of DCLG’s statement today:

Update 11 September 2014

Inspection of the London Borough of Tower Hamlets: concluding stages

In April inspectors from PricewaterhouseCoopers were asked to look into serious allegations of governance failure, poor financial management and fraud.

PwC have now substantially completed their inspection fieldwork and are in the process of producing their report.

PwC has today (Thursday 11 September) sent certain factual information, which they may include in their full report, to Tower Hamlets Council for fact-checking.

Where individuals have given information in interviews which may be referred to in the report, PwC will also be sending relevant information to that individual by the end of the week.

The council and individuals receiving this information will have 10 working days to comment to PwC on its factual accuracy.

All this information has been provided by PwC on a strictly confidential basis solely for the purpose of this fact-checking exercise.

From Thursday 25 September PwC will be considering all the comments received, and finalising their inspection report, which must include any matters identified where the council has not complied with its statutory best value duty.

As required by statute once PwC has finalised its full report, it will then send a copy of that report to the Secretary of State and to Tower Hamlets Council.

Once the Secretary of State has received the report, he will give it careful consideration. Subsequently, in due course, he intends to exercise his statutory power to publish the report, and to make any statement he considers appropriate to Parliament.

If the Secretary of State is satisfied that Tower Hamlets Council is failing to comply with its best value duty, he may exercise his powers of statutory intervention. Statutory intervention may take a number of forms including directing a council to take any action that the Secretary of State considers necessary or expedient to secure its compliance with the best value duty, or directing that certain parts of the council’s functions be undertaken by the Secretary of State or by a person – for example a commissioner – appointed by him for that purpose.

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Sometimes you just have to despair.

I was told this morning the black shahada flag that was taken down from the gates to the Will Crooks estate in Poplar on Friday morning is now back up.

I’m told this followed an angry estate meeting on Friday when wiser heads warned that re-erecting it would be provocative and bound to cause trouble.

I’m told ex-Respect councillor Dulal Uddin, who appeared on a strange Newsnight account of the affair on Friday (when there was no mention of the anti-Semitic abuse directed at me and Guardian journalists the previous evening), was the key agitator behind its return.

Dulal was one of the more unremarkable councillors during his stint from 2006-2010, but I’m told he’s desperate to get back into the council. There are some who believe he’s using this row for his own ends.

I understand that Sister Christine Frost, the community activist who asked for the flag to be taken down, is furious her actions were reported as “Christian nun tears down flag”; her actions were not faith-related but potential trouble related. I understand she disagrees with it being back up. I understand she’s concerned the issue is being exploited by politically motivated adults who don’t even live on the estate.

Whatever the motives, this is a stupid and dangerous move.

I understand that Chief Inspector Gary Anderson, of Tower Hamlets police, was present at Friday’s estate meeting. That meeting ended with a unanimous resolution to:

  • re-erect the Shahada, but with explanations in English below for ‘non-Muslims’. It would say it’s a flag that affirms the Islamic faith.
  • that all meet for five minutes to pray for peace in silence (all faiths and none)
  • they do some “conflict resolution” work with young people
  • to meet again on Monday

Some quick thoughts (I have a lunch date I need to make).

1. If they want a flag, why not settle for the Palestinian flag? Flying an Islamic flag (that experts say on a black background has jihadist overtones) sends the message this is a religious conflict.

2. This is a Tower Hamlets Homes estate. It is publicly owned. The council has ultimate control and ownership. Why is THH allowing political/religious flags to be flown from public property where people of all faiths and none live? How does that square with inclusiveness?

3. Mayor Lutfur Rahman asked for the flag to be taken down on Thursday night. Surely, he’ll have to follow that through.

4. I’ve not heard one apology from any of the leaders of the Will Crooks estate for the anti-Semitism. It’s not even mentioned in a statement I know they’ve distributed to people.

Fail all around.

More later..

UPDATE, 6pm, August 10 – Flag removed again (after police called)

The agreement of Friday’s estate meeting was, according to someone there, to re-erect the flag somewhere in the estate so long as it was accompanied by a translation of the shahada. That meeting agreed to meet again tomorrow to decide when and where it would go up.

However, last night someone broke that agreement. Key figures on the estate believe Dulal Uddin and others were agitating for it to go up again before tomorrow’s meeting.

I’m told that Sister Christine Frost rang the police this morning to tell them the flag was back up. That’s why, as Cllr Andrew Wood reported in the comments section of this blog, Ch Insp Anderson was there today.

In fact it was Ch Insp Anderson who supervised the removal of the flag again this afternoon.

Sister Christine has asked Lutfur to ensure that no religious flags are allowed in public places such as that estate. She wants to foster inclusiveness there.

Before the flag was removed again, Poplar and Limehouse MP Jim Fitzpatrick issued this statement:

“If the black flag is indeed a religious symbol and not a jihadist one, it should be displayed in a religious building and not on public property. The Mayor should instruct his officers to remove it as he did on Friday.”

In the meantime, and before Lutfur was aware of Jim’s intervention, the mayor had ordered it again to be removed. He has also asked the council’s youth service to conduct some “serious engagement” work on the estate to ensure the youth (and probably some adults) fully understand the issues.

I’m also told the estate caretakers have been told to look out for flags on their morning rounds, and remove any that have been hoisted again.

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Black flag PoplarThe Guardian today reported on an incident at the Will Crooks estate in Poplar High Street last night when journalists and a “passer-by” were sworn at by a group of youths.

The group was guarding a black flag they’d erected over the gates to the estate. The flag, which bore Arabic lettering, was believed by some who live nearby to be the ISIS flag.

Experts from the Quilliam Foundation have since assured me it was not. They say it is the shahada, the Islamic testament of faith, superimposed on a black flag. They think the message is: it’s your Islamic duty to support Muslims in Gaza. It is also said that by using a black, which is the colour of war in Sunni Muslim traditions, the message has jihadist overtones.

But I suppose it’s intent that matters. Who put these youths up to it? Did anyone? Are they actually thinking about what they’re doing?

I’ve also heard it argued that this is “Lutfur’s legacy”. The argument runs that by so frequently shouting racism and Islamophobia, he and his team have encouraged (unwittingly or not) an angry, unbalanced outlook. It’s said his decision to raise the Palestinian flag at the town hall last month increased this fervour.

While I think the town hall flag decision was unwise in a borough like Tower Hamlets (I understand his reasons, but I think there were other ways to demonstrate solidarity), I’m not sure he can be blamed for the current outbreak of anti-Jewish hatred. I suspect it’s been there a while.

I also think Lutfur has a good record in this area. He issued a strong statement after last night’s incident, which you can read below. (UPDATE AT 4.30pm: I’m told his office is also trying to calm the situation this afternoon: I hear the youths are being encouraged by some elders to erect more flags. Watch this space.)

That said, we need far more of this firm language. These kids/idiots quite possibly don’t even realise how prejudiced they are. It’s as if they’ve lacked firm parenting or teaching on the issue. And let’s be clear, this is not an attempt to smear all youths in Tower Hamlets. But there seems to be a terrible silence towards those who hate from those who should know better.

Lutfur needs to lead on tackling this. Perhaps special inter-faith task forces are needed to teach in mosques, schools and colleges…about anti-Semitism, and anti-Muslim hatred.

Anyway, here’s the piece I wrote for the Express website today about my experiences at the Will Crooks estate last night. (The community activist I refer to is Sister Christine Frost: I bumped into her this morning just after she’d removed the flag.)

I WAS told this morning by a community activist in east London to be kind in this article to the Bengali Muslim youths who threatened violence last night…and who told me to “F*** off Jew, you’re not welcome here.”

So let me state her well-meaning view that they’re “good boys” and that they’ve been raising much money for the victims of the terrible violence in Gaza.

My wife, a Bengali Muslim herself, disagrees.

She thinks they’re a “disgrace”, both to their families and to their shared community.

My wife is always right.

Until a few days ago, the gates to the Will Crooks estate in Poplar, Tower Hamlets, were adorned with posters calling for an end to the siege in Gaza.

Flying atop the gates was the flag of Palestine.

poplar estate

Then someone–and it’s important to find out whom–had the bright idea of replacing that flag with what many in the area took to be something more sinister.

I received a tip-off about it last night. I was told the black “ISIS” flag was flying there. I was sent a dark grainy photograph but it was difficult to make it out.

So I stopped by the estate on my way home.

With no wind, only a few Arabic letters were visible on the flag. I took out my phone and started taking pictures from different angles.

A few shouts were thrown my way. A group of five or six youths approached me. They asked what I was doing.

Just taking pictures, I said.

I asked them to explain the black flag. They said it represented their Muslim faith. Then they asked for £5. “It’s our flag, we charge people for taking pictures,” they said.

I tried to keep it light-hearted: I joked I was a good photographer; they should be paying me £5.

A few more youths, all of them mid-late teens, a couple a little older, joined the group.

Then one stared at me.

“Are you a Jew?” he asked.

I’m not. I have a large nose; I fitted his stereotype.

I glared back at him. “What if I were? Would that be a problem for you?” I asked.

“Yeah,” he said. “F*** off Jew, you’re not welcome here.”

I looked at one or two of his mates. “Your friend wants to be a bit careful using language like that,” I said.

Another one, apparently more sensible, told him off. This older one then asked whether I was “the police”.

I asked him whether I looked like police. He said I did. I told him if I were, I’d probably be arresting his mate for what he just said.

“You wouldn’t have the balls, man,” he said. “The police don’t have the balls to arrest us.”

The crowd around me had grown again.

“Are you a journalist?” another asked.

Now, I’ve been covering Tower Hamlets for nine years. I’m well known among political activists, and to some I’m a target. A crowd outside the venue for the notorious Tower Hamlets council election count in May started yelling at me when they recognised me walking home.

So on this occasion yesterday, I answered: “What if I were, would that be a problem?”

They said it would be. “We don’t want journos here. They call us terrorists.”

I didn’t count, but I think there were some 15 youths around me by this stage.

Then an older man appeared. He told me to leave for my own safety. He said I was inflaming tensions. “Mate, there’s going to be an incident if you stay,” he warned.

I told him they shouldn’t be allowed to get away with anti-Semitic abuse, that they needed to learn intimidation wouldn’t work.

So I told him I was staying.

Then another (white) man appeared. He had a professional camera and took a few photos of the flag. The youths surrounded him; they demanded his camera. They wanted to delete his photos.

The photographer was from The Guardian. Their reporter, Rajeev Syal, appeared next to me. We know each other.

The youths asked who he was. He told them he was a journalist.

“Ah,” they said, pointing at me. “So you are a journalist.”

Then one voice, then several: “F*** off Jews. We don’t want Jews here, f***k off Jews.”

The three of us then headed for the photographer’s car, parked just down the road. They followed us.

More abuse, more demands for the camera, then warnings of violence unless we left.

We left.

The Guardian reported an abridged version of the story this morning. I’m the “passer-by” mentioned in that article.

There’s been some debate whether the black flag was that of ISIS, or merely a symbol of the ‘shahada’, an affirmation of Muslim faith. It was probably the latter.

However, most agree that placing such symbols or words on a black flag has violent jihadist overtones; replacing the Palestinian flag for that one was a provocative act.

About five minutes’ walk away from the Will Crooks estate is the Tower Hamlets town hall.

There last week, the borough’s directly elected mayor, Lutfur Rahman, ordered the flag of Palestine be raised as a “humanitarian gesture of solidarity” with Gaza.

His decision created national headlines.

Some applauded his principles; others worried his action would stoke the fires of division, that his example would somehow legitimise hatred among those less able, or willing, to spot the difference between the policies of an Israeli government and the views of the British Jewish community at large.

But to the mayor’s credit, when he heard about the incident in Poplar last night, he asked council officials to have the black flag taken down.

In actual fact, the flag was removed before they arrived this morning… by the community activist I mentioned earlier.

FLAG REMOVED

However, Mr Rahman said: “I will not stand for anti-Semitism or any other form of hate in this borough.

“I am deeply concerned by media reports of abusive language and will be liaising closely with the police on this matter.”

The bigger, troubling question for him, however, is does he have a problem with a significant section of the youths in his borough?

It may well be that yesterday’s incident was just local hooligans looking for a cause and identity, and acting territorially on their estate.

But I think there’s probably more to it than that. They seemed to want a Jew-free zone.

The conflict in Gaza has unleashed what I think has been latent anti-Semitism in the minds or far too many in Tower Hamlets.

A few years ago, I was called ‘Ted Jewry’ by one former councillor.

He later apologised.

But social media, particularly during Ramadan, when the violence in Gaza was at its peak, was awash with pro-Hitler prejudice against Jews.

The terms ‘Jew’ and ‘Zionist’ have been used interchangeably as a form of abuse.

And all this from sections of a Muslim community that has quite understandably felt aggrieved at rising levels of Islamophobia directed their way in recent years.

Every year, a delegation from Tower Hamlets marches to a nearby mural in Cable Street to pay homage to the Jews and anti-fascists who stood firm in 1936 against Oswald Mosley’s Blackshirts.

The East End defeated anti-Semitism in that battle.

Now, it must beware of its rebirth.

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