TMO chair and ex-council officer accused of £56,000 fraud

But the court heard that in February 2016, Ms Adedotun emailed Mr Fairhurst claiming she had just discovered she was covering the property services manager position and asked for extra money to reflect the additional duties.

Mr Fitt said the email was the “first evidence of Ms Adedotun lying to her line manager in order to enrich herself”.

Mr Fairhhurst had responded: “Are you for real? Absolutely not. I’m surprised you have the audacity to ask.”

Replying, Ms Adedotun claimed she thought there was “no harm in asking” and that she “just sent it as a joke, not for real”.

However, Mr Fitt argued “that she was not joking – she thought she deserved it and she wanted it”.

The prosecutor then told the court that Ms Adedotun “saw an opportunity” when Lambeth Council handed back financial control to LEMB on 1 October 2016.

He described how just over a month later, Mr Shorinwa authorised paying Ms Adedotun the full salary amount of the property services manager for the time she had been doing the job, claiming that LEMB was “happy” for it to go ahead, as well as questioning later why it was not more than the £56,308.32 calculated.

But Mr Fitt said it was “lies” that the board had discussed the payment, despite LEMB rules requiring any payments of more than £10,000 to be approved by the board.

The money was paid by LEMB to Mr Adedotun’s bank account by 16 November, the prosecution said.

Mr Fitt claimed that Ms Adedotun failed to inform Lambeth Council about the payment, “not because she was forgetful but out of dishonesty”, constituting fraud by failure to disclose.

Jurors were told that at the same time, Ms Adedotun intervened in a compensation claim made by Mr Shorinwa to Lambeth Council for flood damage in April 2011 which had been denied.

Mr Fitt said Ms Adedotun contacted the council’s risk and insurance department on 2 November 2016 and told them that the council now accepted responsibility – resulting in Mr Shorinwa being awarded around £12,000.

“This is a case of you scratch my back and I’ll scratch yours, Mr Fitt said.

The court heard that Phil Morris, a financial advisor to LEMB, raised concerns about the £56,308.32 payment to Ms Adedotun and that the board agreed on 22 November 2016 that she should pay it back, which she did so by 25 November.

Mr Fitt added that Ms Adedotun then showed her line manager a document signed by Mr Shorinwa purporting to be minutes of a confidential item at LEMB meetings on 11 October and 8 November where the payment was authorised.

But the prosecutor claimed “these are false documents” and that other board members had never seen them until the criminal investigation, accusing Ms Adedotun of “trying to cover her own back”.

Lambeth Council suspended Ms Adedotun and she resigned on 24 November 2016 – which Mr Fitt argued was “before the disciplinary could begin in earnest”.

Just two weeks later, the court was told, Mr Shorinwa suggested at an LEMB meeting that Ms Adedotun be hired as a contractor on £270 a day – equivalent to £70,000 a year. Ms Adedotun was hired by LEMB after this, the court heard.

Martin Taylor, defending Ms Adedotun, told the court on Thursday that October 2016 was “unchartered territory” for LEMB.

He added: “You may think there was an obligation from Lambeth before the transfer to set some rules so these people wouldn’t have to muddle through on their own, which is what happened.

“There were no established procedures for making the payment.”

He described how the board had not wanted to lose the “workaholic” Ms Adedotun, who sometimes worked 70 hours a week and had turned around LEMB over a two-year period, getting the organisation out of significant debt.

Using a football analogy, Mr Taylor said: “She is their star striker, they got promoted and they don’t want to lose her.”

He continued: “Her main weakness was doing things herself to save money because it is for the greater good.”

Mr Taylor claimed that Adedotun had actually advertised the role of the services manager twice, but because it was a temporary role, no qualified candidates came forward.

Laura Hocknell, defending Mr Shorinwa, said that at the heart of the case was a “David and Goliath battle” between the council and the TMO.

She said: “You heard from the prosecution that this was a case about corruption and about abuse of position.

“The defence position is that the reality is actually about two people working together to try to do their best for the community they were working for at the time.”

Ms Hocknell told jurors that Mr Shorinwa is unpaid as LEMB chair and had no previous experience of managing finances before October 2016.

She claimed he had “believed he was doing the best for LEMB” by making the payment to Ms Adedotun, as he felt retaining her services was instrumental for the organisation’s success.

And she said Ms Adedotun returned the money following legal advice sought by Mr Shorinwa.

Regarding the £12,000 insurance payment to Mr Shorinwa, Ms Hocknell rejected the prosecution’s claim that this was a case of “you scratch my back I’ll scratch yours”.

She pointed out that Mr Fitt did not argue the compensation claim was fraudulent or that Mr Shorinwa was not entitled to the money.

Mr Shorinwa, of Barrington Road, Loughborough Junction, remains chair of LEMB having been in the role since 2011.

LEMB was established in 1995 and manages around 1,200 tenanted and leasehold homes on the Loughborough Estate, near Brixton.

Proceedings are expected to last three weeks, with the first witnesses giving evidence tomorrow.

The two counts against Ms Adedotun, of New Addington, Croydon, are alternative – meaning she can only be found guilty of one if convicted.

The trial continues.

Additional reporting by Central News