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Councils ‘could seek criminal action’ against contractor following gas safety issues
Four Kent councils could seek “criminal or legal action” against a contractor that managed gas services for their under-fire ALMO.
Gas safety issues at East Kent Housing (EKH) – which manages around 17,000 homes on behalf of Canterbury, Dover, Thanet, and Folkestone & Hythe councils – emerged in late May.
Hundreds of gas safety checks were not done in the time required by law after the breakdown of a contract with heating maintenance firm P&R Installations Company in early April.
An officer’s report that went before Thanet District Council’s cabinet on Thursday said an internal audit of EKH’s contract with P&R in October “revealed significant weaknesses” on the ALMO’s part.
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A further review of the contract by Gas Contract Services identified EKH’s “failure to identify overcharging by P&R for works completed and instances where works have been completed but adequate paperwork [was] not provided”, the report added.
It said there were three overpayments – one of £530,000, which was accepted by P&R, and two worth a combined £949,000, which the contractor disputes.
The councils are now seeking legal advice on “whether the overcharging would constitute fraud”.
The report added: “This process may lead to formal legal or criminal action or independent arbitration, depending upon the advice and the strength of the evidence upon detailed examination.”
Meanwhile, the council said £530,000 has not been “fully recovered”, and P&R has “asserted that there are amounts outstanding and written to all four councils demanding payment for sums that do not appear to have been invoiced”.
A report by Thanet Council’s monitoring officer said failing to have up-to-date gas safety certificates in place could be a criminal offence under the Health and Safety at Work Act 1974, but that the Health and Safety Executive “have not indicated whether they intend to undertake a full investigation”.
In a letter sent to the Regulator of Social Housing by Thanet in June, the council’s chief executive said that during the contract notice period P&R “failed to meet their contractual obligations” to carry out the checks.
An ongoing investigation by the East Kent Internal Audit Partnership has uncovered signs of wider issues at EKH, including fire, lift, electrical and legionella safety.
Thanet Council’s cabinet is expected to follow Canterbury City Council and approve a “detailed options appraisal” of its future housing management structure, including closing down EKH.
In the meantime, officers are investigating the health and safety processes at EKH and their findings will help the councils decide whether to replace its management or strip the ALMO of some responsibilities.
A new permanent gas contractor is not expected to start until November, after “delays” to the re-tendering process meant the councils and EKH missed their initial 3 July deadline.
Only 10 gas safety certificates were outstanding in Thanet as of 3 July.
P&R has been contacted for comment.
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