Councilors could be sued over parish debts

A parish council in Derbyshire is effectively bankrupt and criminal proceedings against councilors are possible, according to a report.

external reportPublished on its website by Elmton along with Creswell Parish Council, there are warnings that the authority will “likely” go bankrupt and be unable to pay staff.

The council took a £3m loan from the government to build a heritage and leisure center in Creswell.

An external consultant brought in to investigate the council’s finances said that a “gross and systemic failure to comply with basic legal obligations” left open the possibility of councilors being prosecuted.

According to the report, the current clerk of the council discovered that all emails dating back to August 2024 had been deleted by former officials before their departure – a move described as “very suspicious”.

The document states that failure to report a suspected crime to the Information Commissioner’s Office can result in the council and councilors being fined or sanctioned.

According to the report, the council “has failed in a number of areas… to comply with statutory requirements and discharge its duty to protect public funds”.

It said this was “the tip of the iceberg of what is set to impact the authority”, which is facing an “open crisis”.

The council owes Bolsover District Council more than £230,000, almost half of which is due as an immediate loan.

The remaining amount is made up of previously unpaid bills from the last five years.

This is in addition to the £3m owed to the government.

The report said: “A default on the loans would most likely result in the Public Works Loan Board (a government body) immediately calling in its loans in an effort to save the government from losing public money.”

The document further states that “Given the gross and systemic failure to comply with basic legal obligations… councilors could face potential prosecution if they were found to have contributed to illegal decision-making and to prevent financial loss.” Failure to take recommended action has been noted.

The report stated that the council failed to follow the financial rules set for itself, which it is legally required to follow, failed to set a budget for the current financial year, and failed to keep its accounts legally. doing.

It says members of the public can also sue the council over its failings.

The Parish Council also engaged in legally “non-compliant” disciplinary action against a councilor of the authority.

In April 2024, the Parish Council Increased its share in council tax by 93% Trying to resolve your emerging financial problems.

Leader and Deputy Leader of Bolsover District Council on Tuesday announced his resignation From roles.

The deputy, Duncan McGregor, was leader of Elmton with Creswell between 2023 and 2024, but had held the position at various times over the decades.

The findings of the report will be discussed at a meeting on Thursday.

Elmton along with Creswell Parish Council and Bolsover District Council have been contacted for comment.

McGregor declined to comment.