Top Northumberland council officer claimed almost £20k to pay for flights to Dubai

Daljit Lally has been chief executive of Northumberland County Council since November 2017. Credit: Local Democracy Reporting Service

A top Northumberland council officer is at the centre of a row over unlawful expenditure after she claimed almost £20,000 in taxpayer cash to pay for trips to Dubai.

Northumberland County Council CEO Daljit Lally flew to Dubai seven times between January 2018 and December 2019.

The total cost of the flights, excluding VAT, came to £18,825.87, with the most expensive flight, in March 2018, costing £3,792.22.

An additional £989.27 was claimed in the 2017/18 financial year for refreshments and hospitality, bringing the total amount claimed by Ms Lally between 2017 and 2020 for foreign travel expenses to £19,815.14.

The spending came to light following a Freedom of Information (FOI) request by the Local Democracy Reporting Service.

The FOI request describes the work as "business development" related to the council's international health consultancy business.

It was for Ms Lally's ancillary work for this business that she made the expenditure claims.

According to the figures obtained, the income received by the council in relation to the international business was £2,894,702.28.

The business - known as Northumbria International Alliance - has come under scrutiny in recent weeks after the county council's chief finance (CFO) officer, Jan Willis, uncovered evidence of "unlawful expenditure" related to the business and issued a section 114 notice.

A S114 notice is made by an authority's CFO if it appears that expenditure in a financial year is likely to exceed the resources (including sums borrowed) available to it to meet that expenditure.

The report by the CFO also raised concerns about an annual £40,000 international allowance paid to Ms Lally on top of her £100,000-a-year salary.

This was found to be unlawful in the report, with claims it had not gone through the proper processes and was not approved by councillors.

At a meeting last week, county councillors agreed to commission a full independent investigation into the issue, where Ms Lally was also heavily criticised in the Max Caller report into governance at the authority.

It is understood that Ms Lally is currently on a period of leave from the council.

The issue was referenced by former cabinet member for corporate services, Nick Oliver, during the meeting, but mentioned flights to other locations not included in the FOI results.

Speaking at the meeting, Cllr Oliver said: "On the matter of travel expenses associated with this business and who paid them what is indisputable is that there have been lavish bills for flights to Dubai, China and other places with return fares costing as much as £5,000 per person and that these expenses have been posted in the council's ledgers."

The FOI request asked for data covering all foreign travel expenses and did not include any information on flights to China or other locations between 2017 and 2020.

The council has confirmed the flight expenses would form part of the investigation.

A spokesman for the authority said: "We will be looking into this as part of the work to follow up on the s114 report."

The Local Democracy Reporting Service has contacted Ms Lally for comment.

Listen to our latest podcasts to find out What You Need To know...