Council probe says rules breached over Salford City Reds deal

AN internal report by Salford City Council into a deal to cover rugby league club Salford City Red’s matchday costs by up to £164,000 has revealed that correct process was not followed by the former official involved.

The review, by the council’s monitoring officer Ben Dolan also questions why Martin Vickers, the council’s former strategic director for customer and support services who brokered the controversial stadium deal, was paid severance before leaving his post.

Mr Vickers left Salford to become a consultant before taking a senior role at Salford City Reds a short time later.

The internal investigation reveals too that at the time of the deal Mr Vickers also held the post of monitoring officer. It recommends that in future this position is filled by a qualified solicitor with no other role within the authority.

The most damning critical element of the report states: “The agreement for the council to pay the Salford City Reds’ match day costs up to the value of £164,000 was not formally recorded and therefore did not follow due process and ensure transparency in decision making.”

Regarding the postion of Ian Stewart, Salford’s City Mayor, the report said: “The city mayor has stated that whilst he was involved in the making of the decision to fund the match day costs he does not know why the proper governance procedures including producing a record of decision were not followed by officers at the time.”

Looking at the wider context, Mr Dolan states that the deal was needed to secure a new owner for the club and the future use of the stadium, which was developed by Peel Group and the council.

“In terms of value for money considerations, the overall driver was to maintain the Salford Reds’ tenancy of the Stadium in order to protect the council’s long term investment in the Stadium. It is clear from discussions with the city mayor, the deputy city mayor and the chief financial officer, that the payment of these match day costs was seen as the only feasible option to protect this investment.

“It should be remembered that securing a new owner and resolving the financial situation of Salford City Reds and its potential impact on the investment made by the council and its partner were key elements in securing the future of the stadium and the planned regeneration of the area. As part of the successful takeover of Salford City Reds the new owner as part of the agreement took on old debt to which the council was carrying a risk.”

A Salford City Council spokesperson said: “The monitoring officer at Salford City Council asked for an investigation following the departure of a strategic director.

“The report has now been made public ahead of the Audit and Accounts Committee meeting next week where consideration will be given to the recommendations.”

Salford City Mayor Ian Stewart said:  “I welcome the report by the monitoring officer and I wait to hear the decision on the recommendations from the Audit and Account Committee to make sure our governance process is a strong as possible.

“My actions have always been in the best interests of Salford City Council and I will continue to do so.”