WOLVES AXON DECISION "THIS WEEK"

11-11-2008

Wolverhampton taxpayers will find out this week whether the city’s controversial business transformation scheme is going ahead – or whether £7million compensation will have to be paid to the consultants Axon.

Speaking exclusively to The Stirrer, the Cabinet Member for Resource, Governance and Support Services Wendy Thompson said it had been necessary to delay a decision on the deal – negotiated by the previous Labour administration - because the local authority hadn’t budgeted for the plan.

That led to the recent transfer of £7million from the Council’s reserves to pay for whatever action comes next.

“We needed to proceed with caution” Thompson explained.

“That’s what we’re doing, and we expect a decision this week.  We can’t just be racing into a £68million contract without checking.”

She couldn’t confirm the current whereabouts of Axon’s IT staff who’ve been seconded to the Council – although we’ve been told that the majority have already left the Civic Centre.

There was also no confirmation that the cash from reserves would be used as a pay-off.

Thompson argued that it might, alternatively, be needed for infrastructure if the scheme were to go ahead.

She said: “We had to convert the financial situation we inherited. £7million has been put into a fund to pay for an infrastructure programme if necessary.

“We have to make a budget because if one isn’t there we’re in an unlawful position.”

She also delivered at sideswipe at Labour’s financial management, claiming that £5million had been set aside for income from the Council’s shareholding in Birmingham Airport – a dividend which wasn’t delivered, and which Thompson says no other West Midlands local authority had made provision for apart from Wolverhampton.

See the previous article here

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