Inquiry into accountants at cash strapped council

An investigation has been launched into the conduct of two accountants at Woking Borough Council (WBC) after the financial collapse of the authority.

The Financial Reporting Council (FRC) said its probe relates to the council's "operations and investment activities" from 31 March 2017 to 31 March 2023.

The council declared itself effectively bankrupt in June 2023 as it faced debt of more than £2bn.

Ray Morgan, the council's former chief executive, has confirmed to the BBC he is one of the individuals being investigated, but said he was not able to say anything further.

A spokesperson for FRC confirmed an investigation has begun "into the conduct of two individual accountants".

It said the probe was "in relation to their compliance with governance, reporting, regulations and professional standards".

It added: "The individuals are no longer employed by the council."

The decision to carry out the investigation, which will be done by its executive counsel, was made at a meeting on 17 December 2024, the FRC said.

Councillor Ann-Marie Barker, WBC leader, said: "Since the council fully accepted the recommendations of the independent Grant Thornton public interest report, Government-appointed commissioners overseeing WBC's financial recovery have been liaising with relevant professional bodies.

"As a result, the FRC has confirmed investigations into the conduct of two former employees.

"Woking residents deserve complete transparency and for those responsible for the borough's financial issues to be held accountable.

"We will therefore do whatever we can to assist the FRC in their investigations."

Hundreds of millions of pounds were borrowed for an investment strategy to regenerate parts of the borough, including the town's Victoria Square development.

Government commissioners are in place as part of measures to turn Woking's finances around, which have included higher council tax bills and cuts to services.

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