IT IS a week since former North Lanarkshire leader Jim McCabe declared “I am not corrupt” on page one of The Herald. And he repeats his innocence in a letter to the paper again today.
However, the council Mr McCabe led for 18 years has been hit by wave after wave of allegations of “corruption” or undeclared friendships ever since he was replaced by his fierce Labour rival, Jim Logue.
The new regime of Mr Logue and his deputy Paul Kelly has sent out a clear signal that it wishes to hear from whistleblowers. Last week it formally launched a “corruption” investigation into procurement processes after receiving a detailed but anonymous letter that named, among other people, Mr McCabe.
A Labour councillor, speaking on condition of anonymity, explained the context of that investigationsaid: “For a number of years there have been increasing concerns regarding the relationship between certain senior councillors and some contractors used by the council.
“Most councillors and staff are very happy that under the new leadership of Jim Logue and Paul Kelly there is a new culture emerging and that they have ordered investigations into these matters.”
Mr McCabe denies any wrongdoing. His friends and allies warn that infighting in the Labour party was throwing up old allegations.
Controversies in the public domain include: l Investigation at Saltire. Police are investigating “corruption” allegations at the gas supply company which is one third owned by the council. These concerns were flagged up by the new regime shortly after it came to power but date to 2013.
They are not part of the wider procurement investigation.
l Mr McCabe’s undeclared friendship with Tony Kane, the former owner of security firm Scotshield. Mr McCabe has admitted he is a friend of Mr Kane, whose firm obtained £18 million of contracts from the council, and that Scotshield employs Mr McCabe’s daughter. These allegations are part of the “corruption” investigation launched by North Lanarkshire Council. Mr McCabe and Scotshield deny any wrongdoing, saying Mr McCabe’s daughter Natalie got her job on merit.
l Mr McCabe’s undeclared friendship with senior executives of Mears Scotland. This housing repair provider’s multi-million pound contract with North Lanarkshire Council was rewritten last year to its benefit. Mr McCabe admitted spending time on holiday with the firm’s managing director, Willie Docherty, husband of Glasgow’s Labour Lord Provost. He was cleared by the standards watchdog of not declaring his friendship with Mr Docherty but his friendship and the Mears contract sparked a bitter row in the party. A senior Labour councillor lost his job amid the row. Mr McCabe denies he sacked colleague Tommy Morgan for whistleblowing. The Mears contract is not part of the procurement “corruption” investigation. Mears and Mr McCabe have always argued their contract would have collapsed unless it was rewritten.
Concerns over roofing contractor Ranley Contracts, which was working on a primary school that burned down, St Dominic’s in Airdrie. Independent council auditors are currently looking into the tender history of Ranley, which is owned by a cousin of Mr McCabe’s former deputy Jim Smith, as part of their wide-ranging investigation into allegations of procurement corruption. Ranley denies any wrongdoing and insists its contracts were all “legal”.
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