Information on Investigations

Which Sector? > Local Authorities > Shetland Island > LA/IS/107

Note of Decision Web Version

Complaint no. LA/SI/107 concerning an alleged contravention of the Councillors' Code of Conduct by Councillor Alexander Cluness of Shetland Islands Council

1. Complaint number LA/SI/107 alleged a contravention of the Councillors' Code of Conduct ("the Code") by Councillor Alexander Cluness ("the respondent").

2. It was alleged that the respondent had contravened the Code, in particular, the key principles of Selflessness, Integrity, and Accountability and Stewardship contained in section 2 of the Code; and the provisions on Appointments to Partner Organisations contained in section 3 of the Code.

3. The person complaining ("the complainant") alleged that the respondent's actions in overseeing the investment activities of Shetland Islands Council, undertaken through the Shetland Development Trust, breached the key principles of the Code. The complaint lacked specification however and was unsupported by evidence.

4. The jurisdiction of the Standards Commission excludes acts occurring prior to 1 May 2003 and is limited to the consideration of the conduct of elected members. Accordingly I was unable to consider those aspects of the complainant's allegations which fell outwith these jurisdictional parameters.

5. The Code does not specifically address issues relating to financial management but this is obliquely referred to within the key principle of Accountability and Stewardship which places a duty on councillors to use the Council's resources prudently.

6. The Shetland Development Trust itself is a body which in legal terms is distinct from the Council. However its formation, membership and management are intrinsically linked to that body, and the funds at its disposal are recognized by the community as being public moneys. In terms of the Code it falls within the scope of paragraphs 3.18 and 3.19 and as such those councillors who have been appointed by the Council as trustees or directors of the Trust are required to observe the provisions of the Code.

7. The complainant also referred to investments in SSG (Seafood) Ltd, a company now in liquidation. I was satisfied that the investment and subsequent guarantee fall within the Trust purposes. The matter has been examined by the Council's external auditors in relation to the use of Reserve Fund monies, who concluded that the subsequent failure of the company, and financial loss to the Trust, was as a result of adverse trading conditions and decisions by banking institutions and feed suppliers.

8. In regard to the stewardship of funds I noted that the Trust is managed professionally, its meetings are held in accordance with the Trust Deed and declarations of interest are properly observed. I found no evidence of impropriety.

9. Having considered the information arising from my investigation, I concluded that Councillor Alexander Cluness had not contravened the Councillors' Code of Conduct.

D Stuart Allan,
Chief Investigating Officer.
Forsyth House
Innova Campus
Rosyth Europarc
Rosyth
Fife
KY11 2UU
30 August 2005