Lambeth faces fraud inquiry over £22m overspend
300 squatters spent 6 months in Clapham's Limerick Court, costing Lambeth Council £500k
Labour bosses face an investigation over a possible overspend of £22m in housing budgets. Houses were left empty while the council continued to pay private landlords for their use and it regularly took six weeks for new tenants to move in once occupants had left.
FACT: In one incident 300 squatters moved into Limerick Court housing estate in Clapham for six months, costing the council an estimated £500,000.
Critically, housing officials failed to do their sums properly when the Labour government cut benefit funding. All these factors led to a shortfall of £6 million last year but the knock on effects may bring this up to around £22 million by March 2010.
An all-party group of councillors has recommended an investigation into the possibility of fraud because private landlords were paid for houses lying empty. Their report says they were “astounded” at the “reckless” behaviour concerning the use of private properties.
Gipsy Hill Conservative councillor Andrew Gibson says: “Make no mistake, Lambeth taxpayers will foot the bill for Labour’s mismanagement whatever the outcome of the official inquiry. The vast majority of tenants have completely lost faith in the Labour council.”
