Probe focuses on two former Woking Council staff after massive debts led to bankruptcy, impacting taxpayers.
The Financial Reporting Council will handle it. They will look at two former senior officers: Ray Morgan, the ex-chief executive, and Leigh Clarke, former financial officer.
A report mentioned them earlier this month. That report said the borrowing was possibly unlawful. Woking borrowed a lot between 1999 and 2020, with borrowing increasing substantially between 2016 and 2019.
The council used this money for projects, including Victoria Place and Sheerwater. These funds also covered company costs, and loans were given to private schools as well.
The bankruptcy caused job losses, and taxpayers also felt the impact. Some valued facilities closed down. The ex-CEO thought they could borrow freely if they could repay the debt.
Governance and decision-making were flawed. Morgan had an “Opportunities Fund” and made decisions with other senior officers. The administration broadly supported him back then.
Morgan was the main person behind investment decisions. The Financial Reporting Council declined to comment but will release a statement soon.
Woking Borough Council also has no comment. Morgan said he has strict confidentiality rules and hasn’t been told what questions he’ll face. Others involved have similar rules.
Morgan confirmed the Guardian’s statement about him. He said he will not add anything now, knowing the FRC will likely name him soon. He made this statement to the LDRS.