Summary: We will not investigate Mr X’s complaint about an alleged misuse of public funds and the Council’s investigation into his report of fraud. We cannot investigate matters which affect all or most of the people in a council area and there is insufficient evidence of fault in how it has investigated his concerns.

The complaint

1. Mr X complains about a Council decision to award a grant to a community interest company. He also complains the Council did not fully investigate his reports of fraud. He says the Council’s actions amount to the misuse of public funds. He wants the Council to fully investigate and order the company to repay money it has misspent.

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The Ombudsman’s role and powers

2. We cannot investigate something that affects all or most of the people in a council’s area. (Local Government Act 1974, section 26(7), as amended)
3. We investigate 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 continue an investigation if we decide there is not enough evidence of fault to justify investigating.

(Local Government Act 1974, section 24A(6), as amended, section 34(B))

4. We consider whether there was fault in the way an organisation made its decision. If there was no fault in how the organisation made its decision, we cannot question the outcome. (Local Government Act 1974, section 34(3), as amended)

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How I considered this complaint

5. I considered information provided by the complainant.
6. I considered the Ombudsman’s Assessment Code.

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My assessment

7. We cannot investigate Mr X’s complaint about the decision to award a grant to the community interest company. This is because the use of public funds affects all or most of the people in the Council’s area and so we have no power to investigate.
8. We will also not investigate his complaint about alleged fraud. The Council investigated his concerns and considered the evidence he provided, but decided not to take any further action. This was the Council’s decision to make. As the Council appropriately considered the matter, we cannot question the outcome, even though Mr X disagrees with it. There is insufficient evidence of fault to warrant an investigation.

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Final decision

9. We will not investigate Mr X’s complaint because the decision to award the grant affects all or most of the people in the Council’s area and there is insufficient evidence of fault in how it responded to his report of alleged fraud.

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Investigator's decision on behalf of the Ombudsman