Exclusive: Croydon Council finance chief accused of manipulating accounts

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Friday, March 20, 2009
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This is Croydon

EXCLUSIVE

by Ross Lidbetter

ross.lidbetter@essnmedia.co.uk

Damning allegations against the council's finance chief have been made by a former colleague who accuses him of "manipulating" accounts.

At a tribunal this week Alan Langridge claimed Nathan Elvery had shifted money between departments, seemingly to make himself look better.

Mr Langridge, who used to be a senior officer at Croydon Council, has taken his old employers to an employment tribunal, claiming constructive unfair dismissal and breach of contract.

The 45-year-old says his dream job as an assistant director of finance for the council's environment, culture and public protection (ECPP) department turned into a nightmare - causing him to suffer a nervous breakdown.

Alan Langridge says large parts of his brain "shut down" because of the way he was treated at the end of his nine-year stint working with the council's finances.

He says he was left with no option but to resign just over 10 months ago and fears he will struggle to find another job in local government as he will be labelled a "whistleblower".

Council sources describe him as a high-ranking "second tier officer" who would have earned around £65,000 a year.

Mr Langridge told the tribunal in West Croydon this week: "The treatment I suffered at the hands of the respondent (Croydon Council) made me very ill and I am still suffering now.

"I still need enormous amounts of sleep and have periods of intense anxiety. I find it difficult to concentrate for long periods of time.

"For example I cannot follow the plot of a film or theme of a documentary. We have to keep pausing for my wife to explain."

The ECPP department is responsible for a number of services, including parking, highways and waste.

It was left with a £418,000 overspend in 2006/07, but Mr Langridge claims this was because of the dishonest actions of Mr Elvery.

He alleges accounts were "manipulated" - with money being moved from one department's budget to another - so Mr Elvery's central finance department had a large surplus of £1,397,000.

Mr Langridge says he sent "briefing notes" to explain the reason for the overspend to councillors Steve O'Connell, Phil Thomas and Steve Hollands.

But he claims these notes only served to rile director of finance Mr Elvery.

Describing a one-to-one meeting with Mr Elvery in July 2007, Mr Langridge, a married dad-of-one, told the tribunal: "Nathan Elvery said to me that he was very disappointed that I had issued briefing notes.

"He was angry and raised his voice. He said 'you cannot expect to be protected within the finance family if you issue briefing notes that criticise me and the finance family'."

Mr Langridge also accused Mr Elvery of making budget cuts to the highways maintenance budget without the approval of the responsible councillors.

He also says he met council chief executive Jon Rouse in October 2007, to complain about the lack of commitment from the top to stick to agreed budgets.

Mr Langridge, who is being represented at the tribunal by employment law solicitors Thomas Mansfield, said: "If the (elected) members made a clear decision about spending more money in one area, then simultaneously they needed to decide what to cut.

"At present this just was not happening and the task of finding savings and keeping spending under control fell entirely on me.

"Yet at my level in the organisation I lacked the authority and proper tools to achieve this."

He told the tribunal Mr Rouse was "hostile and confrontational", and that Mr Elvery had been poisoning his thinking towards him.

It was at the beginning of 2008 that Mr Langridge says his tenure started to come to an end.

On the morning of January 29 that year he says he got an official looking letter from Mr Elvery that left him "cold".

He says he was told he had failed to perform.

Mr Langridge, who would resign three months later, added: "I then read more of the letter and saw that Nathan Elvery was bringing in someone to take over my role with immediate effect."

Croydon Council has issued a statement this week in response to the Alan Langridge case.

It has defended Nathan Elvery and believes it has a strong case in the tribunal.

The statement read: "There's an important context to the claims being brought before the employment tribunal by a former member of staff.

"The background to the proceedings is one in which a relatively short time ago the council's finances were in a serious state with reserves at rock bottom and the organisation facing a bleak outlook.

"Urgent action was needed to restore financial stability and key top level appointments were made to ensure this happened as a top priority.

"Director of resources and customer services Nathan Elvery was appointed with a mission to restore the council's financial position and to manage the council's budget in line with auditor approval.

"Working with members and the chief executive, Nathan has directed a successful recovery - a process which has required fair but robust management intervention to get the organisation fit for purpose.

"The result is that we have achieved a four star rating - the top rating - from the Audit Commission, for our financial governance of the organisation.

"This has involved making tough decisions, which some staff have found uncomfortable.

"We have had to root out holes in budgets, correct over-optimistic income assumptions and address perennial overspenders.

"Among those who have not appreciated the actions required to correct the situation is Mr Langridge, who has brought employment tribunal proceedings.

"The council strongly refutes the allegations he has made and will continue to contest them at the tribunal.

"We are confident that we are strongly refuting Mr Langridge's argument and we are hopeful that our position will be upheld when judgement is received."

The tribunal is expected to conclude today (Friday).

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