Cardiff Labour’s Aberthaw fiasco costs taxpayers millions

Aberthaw Power Station. Photo via Google

The Welsh Liberal Democrats have said the publication of the independent review into the Aberthaw Power Station demolition procurement confirms a serious breakdown in governance under the watch of Cardiff’s Labour-run council.

The review, commissioned by the South East Wales Corporate Joint Committee and undertaken by Deloitte, found that the procurement process fell below the standard expected for a project of its size and significance.

The report highlights deviations from the tender process, errors in scoring and calculation, weaknesses in documentation, and inadequate training and oversight.

The legal challenge that followed has resulted in a costly settlement, with around £6 million lost once legal costs are taken into account.

Councillor Rodney Berman, Leader of the Liberal Democrat Group on Cardiff Council and lead Liberal Democrat Senedd candidate for Caerdydd Ffynnon Taf, said:

“This was not a slip of the pen. It was a serious failure of judgement and oversight on Labour’s watch, where the rules weren’t properly followed and the process went off course. I am highly concerned that no senior officer from the local authority appeared to be overseeing what was done despite the scale of the contract being considered.

“The result is that millions of pounds of taxpayers’ money have gone up in smoke through a legal challenge that should never have been necessary. That’s money that could instead have been spent on much-needed regeneration projects."

Councillor Berman said the findings raise serious questions about senior oversight within the council and whether sufficient safeguards were in place for a contract worth more than £10 million. 

The Welsh Liberal Democrats are calling on Cardiff Council to publish a clear plan setting out how the review’s recommendations will be implemented, what accountability measures have been taken, and how future major procurement exercises will be subject to stronger scrutiny to ensure taxpayers’ money is properly protected.

ENDS

Notes:

Details of the Deloitte review into what went wrong with the Aberthaw procurement can be found here: https://www.cardiffcapitalregion.wales/news-events/latest-news/south-east-wales-corporate-joint-committee-sees-independent-review-into-aberthaw-procurement-challenge-conclude/