Growing Scandal: Consultant Approved Own Invoices Worth 7.5 Million

When politicians questioned the high consultancy costs in the municipality, they were informed that a controversial external consultant had cost 1.4 million SEK. It now turns out that this was far from the truth. The external consultant had been hired for 7.5 million SEK, and the invoices were mostly approved by himself.

"We cannot handle taxpayers' money in this way," says Mikael Karlsson, vice chairman of the technical committee in Vara municipality.

Expressen revealed on Monday how Vara's political leadership was called to an emergency municipal board meeting in the middle of the vacation to address a growing consultancy scandal.

Politicians had questioned the consultancy costs in the technical administration during the spring, where it was believed that one of the consultants should have been phased out by 2023 but was still working.

The administration's response was that the cost was 1.4 million SEK since 2022 and that the claim that the consultant would be phased out was up to the questioner.

At the crisis meeting in July, new information emerged. It turned out that the consultant had been hired for significantly more money—unclear how much—and that the consultant largely approved his own invoices.

Expressen can now report that the information given to politicians in Vara was only a fraction of the actual cost. A further review of the consultancy costs conducted by the municipality now shows that the individual consultant was hired for 7.531 million SEK—more than five times the cost initially reported to politicians.

Nine Out of Ten Approved by the Consultant Himself

Additionally, the municipality has now found another agreement, in addition to the two previously known, concerning the consultant.

The two previously known agreements were not procured, not registered, or reported to the politicians in the committee. Despite the agreements forming the basis for a cost to taxpayers of 10.6 million SEK, the municipality's review shows so far. This also includes other invoiced services within the framework of the two improperly drafted agreements.

Expressen has reviewed all payments made from Vara municipality to the two consultancy companies through which the consultant was hired. Up until May this year, when the irregularities were discovered, there were 659 invoices, of which the consultant approved 578 himself. This means nine out of ten payments.

The vast majority of the payments were then finally approved, without other documentation, by property manager Åsa Hammargård, who also wrote the agreement that extended from 2022 to today. Initially, in 2022, the technical manager also approved costs for an agreement they signed.

Five Times the Amount

As Expressen previously reported, the external consultant had direct access to the municipality's financial system and was also assigned a work computer, according to the agreement.

It is catastrophic

Mikael Karlsson, vice chairman of the technical committee in Vara, is extremely upset when he receives the new information.

"That it should amount to 7.5 million. It's completely... then they haven't had batteries in the calculator at all. It's catastrophic," he says.

He takes it particularly seriously that politicians request information about costs in the administration, which then turns out to be five times as large. This type of information should form the basis for the politicians' decisions concerning the municipality.

"That we cannot get the sum when we asked for it. If this had happened in a private company, the consequences would have been extremely serious for those involved. We cannot handle taxpayers' money in this way."

Is your impression that someone here wanted to hide the full extent?

"When we have asked a direct question and get an answer that is one-sixth of what seems to be the truth, then you can definitely wonder about the routines. I'm not saying that someone tried to hide something, but the thoughts do go in that direction," says Mikael Karlsson, who represents the local party Hela Vara kommuns bästa.

The person who originally asked the question about the consultancy costs was Jan Erlandsson, who sits for the Social Democrats in the technical committee.

He says that both he and the entire party group realized that the first figures presented by the administration were unreasonable. It was still about a consultant who had worked since the autumn of 2022.

"I was surprised by the answer," he says today.

Response from the Municipality's Top

He also received the information on Wednesday that it rather seemed to be about 7.5 million.

"There has been far too little control over this," says Jan Erlandsson, emphasizing the importance of municipal politicians, who are laymen like himself, actually getting the right information when they ask questions.

"Of course, it is super important, we are laymen, and we trust the officials and that everything is correct. It is extremely important."

Very sad and disappointed

Expressen has been in contact with property manager Åsa Hammargård, who refers to municipal director Anna Cederqvist and the external investigation that will now be conducted on the matter.

"I am very sad and disappointed that the correct information has not reached the politicians. Then I cannot answer why it has become so, but of course, we should report the correct information," says Anna Cederqvist.

One explanation that the municipal director raises is that the administration, for some reason, only reported the cost for four of the many projects the consultant was hired for and for a shorter period than what has now been found.

That it would be a matter of wanting to obscure the extent of the costs from the politicians—which are based on agreements that have not been procured or reported to the politicians—she does not want to comment on.

"I have no opinion on that at all. The investigation will have to show that," says Anna Cederqvist.

The consultant has also referred all questions to the municipal director.