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Islington Tribune - by ROISIN GADELRAB
Published: 2 November 2007

Social services chief in £3m payment row urged to step down

A CALL has been made for Lib Dem social services chief Councillor John Gilbert to resign in a row over a £3 million payment to a private company.
Labour group leader Councillor Catherine West is to propose a motion of no confidence at the next full meeting of the council.
The row is over a payment to Care UK, the private company which took over three of Islington’s care homes in 2003. A report published last month revealed the council had given the company £2.9 million to allow a programme of money-saving cuts, which slashed wages for 83 staff, to be introduced.
But when the Tribune spoke to Care UK, spokesman Chris Rudolph said the company “did not recognise” receiving the figure. Trade union Unison says its records show only £1.5 million was used to pay off staff, leaving the other half of Islington’s deal not accounted for.
But Cllr Gilbert said: “Roughly £900,000 of the £2.9 million paid to Care UK was a payment the council owed them anyway under the original contract.
“About half the remainder was an estimate of the cash payment to be made to staff in compensation for the change in their terms and conditions and the other half was made up of miscellaneous payments, for example for agency staff, legal costs and training.”

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