A consultant at Vara Municipality's technical administration is under investigation for approving his own invoices worth millions. The scandal prompted an emergency meeting, revealing that the consultant had significant control over financial approvals without proper oversight. The municipality is now conducting an external investigation to uncover the full extent of the issue.
Consultant Approves Own Invoices: Vara Municipality in Crisis Meeting
Consultant Approves Own Invoices: Vara Municipality in Crisis Meeting
A consultant at the technical administration in Vara Municipality approved his own invoices worth millions.
In the midst of the summer holidays in July, the municipal board in Vara was called to an emergency meeting.
The main agenda of the meeting was a growing consultant scandal in the municipality, as reported by Expressen, where it is now suspected that an external consultant had been approving his own invoices for several years, amounting to millions.
The consultant was provided with a work computer by the municipality with access to the financial systems, where he reportedly approved his own time reports and invoices, which otherwise lacked documentation.
Politicians Informed of Lower Amounts
Concerns about the costs of consultants at the technical administration in Vara Municipality were raised as early as spring. It was mentioned that the consultant had been hired for several years despite the administration already having three employees who, according to a leading politician who raised the issue, should have had equivalent duties. Additionally, the consultant was supposed to be phased out in 2023, which did not happen.
The administration blamed the heavy workload and stated they were unaware of any planned "phasing out" of the consultant. They reported the consultant's cost as 1.4 million kronor.
However, during the investigation, circumstances surrounding the consultant emerged, prompting the municipal board to convene an emergency meeting in July.
"Amount Significantly Higher"
The consultant costs initially reported to politicians as 1.4 million kronor turned out to be significantly underestimated.
"Upon closer inspection of the financial system, the amount appears to be significantly higher," the municipal board was informed by municipal director Anna Cederqvist.
It was also revealed that the external consultant was usually the one approving his own time reports and that no other documentation for the invoices, which he also approved and controlled, existed over the years.
– I don't know if he has checked every single invoice or not. I can't answer that. But it seems to be a significant portion of his own invoices that he has approved, says municipal director Anna Cederqvist, referring to the external investigation the municipality is now launching into the incident.
– It seems that the consultant's amount is higher than the 1.4 million kronor, and that's what we need to look into and get to the bottom of.
How can it even happen that an external consultant approves his own work hours in a municipality's financial system?
– I can't answer that, we need to thoroughly investigate why this happened. Because it's not according to our routine.
Consultant Reviewed Other Consultants
According to agreements with the consulting firm, the consultant had significant authority and an hourly rate of over 1,000 kronor excluding VAT during the years he was hired.
Among other things, the consultant had the mandate to order work from other consultants and review other consultants' invoices.
The agreements also state that the consultant should "carry out the assignment professionally and with care and otherwise observe good professional practice."
The person who signed one of the two agreements over the years and also ultimately approved the payments to the consultant is the property manager in Vara Municipality, Åsa Hammargård.
She refers all questions to municipal director Anna Cederqvist. One of the questions she refers to the municipal director is how she – according to the municipality's initial information – could approve payments for millions without documentation.
– To get a correct answer, I have to refer you further, says Åsa Hammargård.
Anna Cederqvist does not want to go into details about how it all could have happened, but in Vara Municipality, as in most organizations, there are two steps to approve an invoice.
First, an independent official performs a control check. This checks that the information in the invoice is correct, that there is necessary documentation, and that the cost corresponds to what was agreed with the supplier.
Then a superior performs a decision check. This is a final approval before payment is made, where it is reviewed that the invoice follows what was procured and what is stated in the agreement.
Still Employed
The consultant has generally made the first approval, and the property manager has made the second without any further documentation.
– The consultant is still employed but is not in our financial systems, says Anna Cederqvist, adding that they will not pay the invoices that have not yet been paid until the issue is resolved.
Isn't it still a failure of competence that one does not understand that as an external consultant, one should not approve one's own work hours and invoices?
– I don't want to comment on that until I have the full picture, so I will wait for the investigation before I assess it, says Anna Cederqvist.
Expressen has been in contact with the consultant, who also refers to the municipal director.