A SENIOR executive officer of Knowsley Council was accidentally appointed as a director of a company awarded £1m a year in council funds, a spokesperson has said.
Executive director for communities and neighbourhoods Andrew Donaldson was registered with Companies House as a director of Supreme Executive Cars Ltd in January of this year.
Supreme Executive Cars Ltd is one of a consortium of companies awarded a lucrative council contract to provide home-to-school transport for children in Knowsley in June 2020 with the deal worth in excess of £10m over a five-year period.
Last year, the company received nearly £1m in payments from Knowsley Council.
Concerns had been raised with the Local Democracy Reporter Service (LDRS) about the presence of Mr Donaldson on the board of the company, amid fears this could impact on the council’s reputation around fairness and impartiality and present a potential conflict of interest given the contract the company has with the council.
Knowsley Council was asked whether Mr Donaldson, who joined the council in April 2021 and is understood to deputise on occasion for the chief executive Mke Harden in his absence, had sought permission and disclosed he was a director of the company in line with the council’s code of conduct for officers.
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The council was also asked whether it had any concerns about Mr Donaldson’s position in the company given his senior role at the council.
Responding to those queries, a Knowsley Council spokesperson said that Mr Donaldson had been registered as a director of the company “in error” and would now be removed.
Companies House records show that Mr Donaldson was removed as director of the company today, March 3.
Mr Donaldson is also listed as a director for Knowsley Development Trust Ltd, which runs Knowsley business park. He joined the board of directors of that company in April 2022.
Supreme Executive Cars Ltd is “linked” with Knowsley Development Trust Ltd via its parent organisation Your Travel Borough Wide Ltd.
Your Travel Borough Wide Ltd is a charity limited by guarantee which was set up in 2004 by the directors of Knowsley Development Trust Ltd. The chief executive of Your Travel Borough Wide Ltd is seconded to the charity from Knowsley Development Trust Ltd, according to its most recent annual accounts.
Your Travel Borough Wide Ltd bought Supreme Executive Cars Ltd in 2018, which is now a wholly-owned subsidiary company. This decision was connected to new requirements around permits for drivers, according to company records.
Your Travel Borough Wide Ltd was previously part of a consortium awarded the home-to-school transport contract by Knowsley Council in 2017. When the contract was being renewed in 2020, Your Travel Borough Wide Ltd was replaced by Supreme Executive Cars Ltd in the contract.
Referring to Mr Donaldson’s directorship of Knowsley Development Trust, the council spokesperson said this had been disclosed and permission granted by the council for him to take up the role.
The council said his role with the company was “voluntary” and added that Mr Donaldson is not involved in any contract decisions in relation to the company as part of his role with Knowsley Council.
The spokesperson said: “Mr Donaldson is a Board member of Knowsley Development Trust (a linked organisation to Supreme Executive Cars Limited) .
“His role on the Board of Knowsley Development Trust has been declared formally by Mr Donaldson at the time of the appointment. This has been approved in line with the Council’s Declarations of Personal Interest Policy which supports the Council’s Officer Code of Conduct.
“Mr Donaldson is not paid for this voluntary role and is not in involved in, or responsible for, any contractual decisions relating to Knowsley Development Trust as part of his employment as the Executive Director of Communities & Neighbourhoods at Knowsley Council.”
The spokesperson continued: “Supreme Executive Cars Limited is a related organisation to Knowsley Development Trust and unfortunately, in error, Mr Donaldson has been listed as a director of this company too.
“This is not the case and Knowsley Development Trust is amending its records and removing Mr Donaldson from its listing on Companies House.”
Knowsley Development Trust director, Steve Dumbell, who is also a director of Your Travel Borough Wide Ltd and Supreme Executive Cars Ltd told the LDRS: “I can confirm that Mr Andrew Donaldson is a valued Board Member of Knowsley Development Trust. He is not however and never has been a director of Supreme Executive Travel Limited.
“I can only apologise to Mr Donaldson for this error and for any confusion or issues that have been caused as a result.”
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