Medway Labour and Co-operative Group called on Medway Council to justify its extraordinary payment of £300,000 to its commercial arm Medway Commercial Group. Cllrs Vince Maple and Clive Johnson have written to Medway Council’s CEO to establish the details of the 3% commission payment, and how this deal represents value for money to the people of Medway.
MCG, owned by Medway council, has already been called to account by Medway Labour group, resulting in the company losing its role in the project management of the proposed Cornwallis SEN school.
A police investigation is also currently underway in relation to the commercial group’s finances after allegations of fraud.
The company has also been slated for its poor performance with the council’s CCTV. Medway Council has now revealed that the council is paying the company 3% commission on social worker agency recruitment fees, totalling £300,000.
Clive Johnson, Shadow Cabinet Member for Children’s Services, said, “It is shocking, once more, to find Medway Commercial Group at the centre of controversy. Medway Labour and Cooperative Group’s action has already resulted in them being stripped of responsibility for the Cornwallis SEN school proposal.
“Now, at a time of deepening financial crisis for Medway Council as a result of the Covid-19 emergency, and with Medway’s Children’s Services needing all the financial and other resources they can get to turn round last year’s ‘Inadequate’ Ofsted judgement, we find MCG receiving £300,000 of council funding.”
Vince Maple, Leader of the Medway Labour and Co-operative Group, said, “We already have serious questions to ask about MCG and the details of the extraordinary arrangement, which are only exacerbated by the news of the £300,000 payment.
“I have written to council officers to establish why MCG are needed for this work, and how this deal represents value for money to the people of Medway.”
You can read the full letter sent by Councillors Vince Maple & Clive Johnson below.