Legal loophole threatens millions in EU PEACE funding
Sinn Féin Dungannon Mayor, Francie Molloy MLA, the current President of
NILGA
has warned of a total breakdown in the operation of local bodies
responsible
for distributing EU PEACE funding because of a legal loophole.
Following concerns raised by the auditor about the legal cover for council
appointees
to certain outside bodies that are companies, legal advice has
been
issued by the Department of Environment that means that local
government
councillors are not legally entitled to represent their council
on
outside bodies such as the Local Strategic Partnerships and LEADER
companies
that distribute the bulk of EU Peace monies.
Local government representatives play a significant role as directors on the
Boards
of LSP and LEADER companies.
EU regulations require specific representatives on the boards of the
companies
that distribute EU funds including community and business
representatives,
statutory agencies representatives and elected local
government
representatives.
Commenting on the situation Cllr Molloy said:
"The legal advice indicates that councils have no power to set up or
participate
in a limited company such as those set up to deliver EU Peace
funding.
"Literally millions and millions of pounds are at stake. Unless the
situation
is rectified and rectified immediately, LSP and LEADER companies
will
have to be wound up. There will be total breakdown in the allocation of
EU
PEACE funding.
"The impact on the ground will be devastating. Jobs will be lost and much of
the
work in building peace and reconciliation, in regeneration and in
fostering
better educational and work opportunities will just be thrown
away.
"The fact that there is no legal cover for councillors to discharge their
democratic
duties by providing representation on outside bodies is a
scandal. It
is made worse when the rules governing the distribution of EU
funding
demand it.
"Whether it is incompetence in drafting the legislation or a more direct
attempt
to undermine democratic accountability the fact is that if
councillors
are forced off these companies then they will be forced to close
because
they will not be able to operate legally.
"The direct rule minister with responsibility for this, Jeff Rooker, needs
to
take immediate steps to rectify this legislative gap.
"For decades there has been a democratic deficit created by the over
dependence
on quangoes. The role that councillors have played in
regeneration and
reconciliation through these companies has been vital. This
is a step
backwards. It is an attack on democratic participation in decision
making
and on democratic accountability.
"The swift drafting and implementation of adequate statutory provision can
remedy
the situation. In the first instance, the government departments that
are
responsible for this situation should be instructed to issue councils
with
letters of cover that will enable them to legally appoint
representatives
to outside bodies." ENDS