The Ombudsman's final decision
Summary: We will not investigate this complaint about how the Council made contractual payments to a company. That is because there is not enough evidence of fault to justify our involvement.
The complaint
Mrs X complained the Council was using the wrong bank account to pay for services that her company (the Company) had provided. She said she had no access to the account the Council were paying the money to. She said the Council’s actions had caused significant financial difficulties for the Company. She wants the Council to stop the payment into the bank account, compensate her for her solicitor’s costs and reclaim the payments it has previously made.
The Ombudsman’s role and powers
The Ombudsman investigates complaints about ‘maladministration’ and ‘service failure’, which we call ‘fault’. We must also consider whether any fault has had an adverse impact on the person making the complaint, which we call ‘injustice’. We provide a free service, but must use public money carefully. We do not start or may decide not to continue with an investigation if we decide: there is not enough evidence of fault to justify investigating, or there is another body better placed to consider this complaint.
(Local Government Act 1974, section 24A(6))
How I considered this complaint
I considered information provided by the complainant and the Council.
I considered the Ombudsman’s Assessment Code.
My assessment
Mrs X is a joint director of the Company. The Council contracts with the Company to provide transport.
In the Council’s response to Mrs X’s complaint, it said that when the Company tendered for the contract, it named a Contracts Manager, who had authority to act for the Company regarding the contract. It said the Company’s Contract Manager had contacted it to change the bank account details. It said the Council had acted upon those requested changes and paid for services into the new bank account. The Council said it had followed the correct process in amending bank details and considered the matter to be a complaint between interested business parties.
Although Mrs X is unhappy with the Council’s response, we will not investigate this complaint. That is because there is not enough evidence of fault in the Council’s actions to justify investigating. It has acted in accordance with the tendering agreement and business contract it has with Mrs X. If Mrs X believes the Council is in breach of contract with the Company, then this would be best pursued in the courts. The court would also be able to consider Mrs X’s claim for financial compensation.
Final decision
We will not investigate Mrs X’s complaint because there is not enough evidence of fault to justify our involvement.
Investigator's decision on behalf of the Ombudsman