Police probe over former Walsall Council social care chief

Paul Davies was sacked by the authority over misconduct allegations and last month lost an unfair dismissal claim at an employment tribunal.

West Midlands Police has confirmed that officers have now been called in by town hall chiefs to determine whether any criminal offence was committed by the former director and two other ex-members of staff.

Insp Neil Postins from the force's Economic Crime Unit said: "Detectives have been informed of allegations concerning three members of staff at Walsall Council.

"That information continues to be reviewed to see whether any criminal offences have been committed. Inquiries are on-going and are likely to take some time."

Mr Davies took the authority to a tribunal after he was dismissed for misconduct in March 2014 amid allegations he gave credit union Walsave responsibility for £3.5 million of council cash without permission.

He was suspended for 15 months after whistleblowers complained about his actions.

Following an independent investigation and a council-led disciplinary hearing, Mr Davies was found guilty of two counts of gross misconduct and a further five counts of misconduct. His subsequent appeal was dismissed.

An employment tribunal in Birmingham held last October and November upheld the council's decision to sack him.

Walsall Council leader Sean Coughlan said the internal investigation, legal costs and the tribunal is set to cost the cash-strapped authority more than £6.5 million and that figure may rise in the future.

He said the council spent £3m on 'non-compliance fees' relating to budget-saving 'misjudgments or errors' made by Mr Davies. While a controversial shake-up in care system charges spearheaded by him resulted in more than £2m in unpaid social care bills. The independent investigation into Mr Davies' conduct cost £576,105 and tribunal legal fees were £1m.

Councillor Coughlan said: "It was important for the council to act when these matters regarding Paul Davies came to light. Clearly if we are to learn from these terrible mistakes we have to be open and transparent with taxpayers about how much it is costing to deal with this very bad situation.

"The last time we found ourselves in a similar situation was over the Peter Francis whistleblowing affair that also cost taxpayers millions of pounds, again with the previous Conservative administration was in control."

But Conservative group leader Councillor Mike Bird, who was leader when Mr Davies was suspended and then sacked, disputed the figures and said no elected member was to blame for what happened.

Councillor Coughlan said the two other former employees were John Fell and Sean Cook, who were brought to the council by Mr Davies.

All three were unavailable for comment.