Transparency and accountability: Council responds to ADMC governance findings

Ashfield District Council has confirmed that it took quick and responsible action after internal checks identified governance issues within the Automated Distribution and Manufacturing Centre (ADMC) project.

The Council’s Monitoring Officer has issued a Section 5A report, a statutory mechanism triggered where there is a potential breach of law, ensuring Cabinet formally considers the matter and determines next steps when it meets on Monday 13 April.

The issues were identified internally by Council officers, who escalated concerns, asked an independent expert to review the situation, and paused work on site while more information and legal advice were gathered.

The independent review confirmed that some elements of the project did not follow the Council’s established governance and procurement processes including:

· Work being delivered and paid for before contracts were in place.

· Increases in infrastructure costs that should have been escalated for approval earlier than they were.

These are the material reasons requiring the Monitoring Officer to issue the Section 5A report.

In response, the Council has already put in place a series of decisive actions, including:

· Voluntarily pausing works in January to protect the Council and the taxpayer while corrective actions were developed.

· Commissioning an independent external review.

· Strengthening procurement oversight, contract management controls, and internal project governance.

· Beginning work on a refreshed scheme budget to ensure full, formal approval before any new contracts proceed.

Early engagement has also taken place with government partners, including MHCLG and the Council’s external auditors, Mazars, to maintain transparency and provide assurance.

Despite the pause to works while the review was undertaken, the Council is clear that the ADMC project remains viable, deliverable and a major priority for Ashfield and the wider region.

Theresa Hodgkinson, Chief Executive of Ashfield District Council said:

“We identified these issues ourselves, acted immediately, and we are being fully transparent about the steps we are taking.

“The ADMC remains a transformational project for Ashfield. It is central to our plans for economic growth, business innovation and high-quality employment opportunities in the district."

The Council stressed that no taxpayer money had been unnecessarily spent, and that it would focus now on delivery of the project.

“All of the work carried out has contributed to the delivery of the project, and payments relate to legitimate work completed on site. There is no suggestion the money has been lost or misused,” Theresa said.

“Our focus now is on strengthening governance, and ensuring we are in the strongest possible position to move forward with the project. Our aim is to be back on site in early May, and I’ll confirm as soon as I can what the revised timeframes for the completion of this flagship project will be.”

Cabinet will now consider the Monitoring Officer’s report and set out the next steps, with work on site remaining paused until the necessary approvals are in place.

Posted on 31 March 2026