The unprecedented move comes after inspectors found a "deeply concerning picture of mismanagement, the breakdown of scrutiny and accountability, a dysfunctional culture putting the spending of public funds at risk and undermining the city’s economic development".
Robert Jenrick, Housing Minister, said that commissioners will be sent to intervene at the departments following the arrest of Liverpool mayor, Joe Anderson (pictured).
Anderson was arrested in December last year as part of an investigation into the awarding of building contracts. Mr Anderson denies any wrongdoing.
Robert Jenrick said an emergency inspection had found “failure of proper and due process across planning and regeneration, including a worrying lack of record-keeping” at the authority.
In his statement, Jenrick revealed that documents had “sometimes been created retrospectively, discarded in skips or even destroyed”, and went further to say that adding there had been “dysfunctional management practices" and “dubious contracts” at the highways department.
The decision to step in comes after a damning report on parts of the council by local government consultant, Max Caller, which had uncovered an “overall environment of intimidation” at council operated companies in which “the only way to survive was to do what was requested, without asking too many questions”.
The council is expected to accept the new proposals, meaning government commissioners would be drafted in imminently.
Wendy Simon, Acting Liverpool mayor, said: “This is a difficult day for our organisation and we take the report findings extremely seriously. The inspector’s report has highlighted several failings, but there is a collective commitment from both councillors and officers to learn from these mistakes.
“We would like to reassure all residents and businesses that we will take action to address all of the issues highlighted. We know we need to rebuild your trust.”
Jenrick said: “As a whole, the report is unequivocal: Liverpool city council has failed in numerous respects to comply with its best value duties. It concludes that the council consistently failed to meet its statutory and managerial responsibilities and that the pervasive culture appeared to be rule avoidance.”
The investigation, called Operation Aloft, has also seen the arrests of developer Elliot Lawless and council regeneration chief Nick Kavanagh. Neither men have been charged.
Anderson denies wrongdoing and has called the allegations “absurd”.
