Staffordshire County Council is undertaking a review after revealing it did not know how many companies it owns or has an interest in.
The authority is keen to find out what involvement it has in arms-length companies and other external organisations.
Officers said they don’t have a straightforward way of finding information about the council’s involvement in more than 120 organisations, adding that details of how companies linked to Staffordshire County Council are run is only held by a few individuals.
They said the review was launched in order to ensure these organisations are properly monitored for the benefit of taxpayers.
County solicitor Kate Loader said:
“It’s been quite difficult to find out how many companies we have.
“We are looking at a process to make sure that when companies are set up they follow a process – and, fundamentally, also to make sure there is a register of companies going forwards, which will give us more assurance in relation to the governance of the companies.”
Kate Loader
Councillors met earlier this year and agreed to focus initially on council-owned, arms-length companies which are sometimes known as LATCOs.
The council said it would make contact with each one to request paperwork that would enable it to carry out a review of each one’s operations – and will do the same for the other organisations it is linked with, to establish what involvement councillors or council officers have within those organisations.
Relevant councillors and officers will also be contacted to ask them if their involvement with the companies is still necessary and if the companies are still active.
Cllr Bob Spencer said:
“I think it’s important to have an understanding of these companies.
“I think the most important thing is that we have a robust process in place rather than an ad-hoc view of companies that we have a relationship with.”
Cllr Bob Spencer, Staffordshire County Council
Cllr Jeremy Pert added:
“I think we need to make sure we have the most appropriate people involved with those LATCOs.
“We need to make sure the right skills are identified and the right people are identified for those roles – to add value to those boards and make sure the appropriate governance is happening.”
Cllr Jeremy Pert, Staffordshire County Council
Council leader Cllr Alan White noted that obligations under company law might be at conflict with the council’s interests.
“We do need to be mindful of that, and that’s been on my mind quite a lot recently since we’ve had cabinet members who are directors of companies where decision are being made but they’re also decision makers for the presentation of reports to full council.”
Cllr Alan White, Staffordshire County Council
A more detailed report on the issue is due to be published in December.
