In a recent article, entitled Incinerator row is coming to a head, The Eastbourne Herald reports that the Liberal Democrat MP for Seaford, Norman Baker, received confirmation that East Sussex County Council failed to consult the Treasury before deciding to award a five-year extension to Veolia without inviting rival bids.
The information was confirmed by Treasury Secretary Angela Eagle during a House of Commons debate, where it also emerged that the European Commission is minded to uphold Mr Baker’s complaint against East Sussex County Council for failing to follow public procurement rules.
Norman Baker told the Commons:
The Minister may be aware that the European Commission has indicated it is minded to uphold a complaint I instigated against East Sussex County Council for letting the extension to their waste contract without open tender, a contract for which PFI funds have been provided.
Did East Sussex County Council seek specific approval from the Treasury before entering into this contract extension to confirm that the terms of the initial PFI award were not breached, and that all obligations in respect of public procurement were properly discharged; and does he regard the artificial, now corrupted PFI, as still valid?
Treasury Secretary Angela Eagle confirmed that East Sussex County Council did not seek Treasury approval before granting the extension.
Mr Baker added:
It is shocking that East Sussex County Council did not take advice from the Treasury, or it seems anywhere else in government, before embarking on their dubious action.
Given the uncertainty which they themselves expressed, in secret reports to councillors, about the legality of their action, it is clearly negligent that they failed to check their proposed actions with the Treasury, which provided the PFI funds for the waste contract.
Here is yet further evidence of the amateurish and slipshod way in which the council has approached this multi-million-pound contract.
I am drawing this latest example to the attention of both the European Commission and to the council’s own auditors, with whom I have another complaint under consideration.
