Chief exec steps aside temporarily after arrests in joint venture investigation

Liverpool City Council’s chief executive Ged Fitzgerald has been arrested along with three other men as part of an investigation into conspiracy to pervert the course of justice and witness intimidation.

The arrests are part of a long-running investigation into alleged fraud concerning Liverpool Direct and One Connect, former joint ventures between BT and Liverpool City Council and Lancashire County Council respectively. The arrests do not relate to fraud.

Also arrested was former Lancashire leader Geoff Driver, who lost office when Labour defeated the Conservatives in 2013 but has been expected to resume the leadership following the Tories’ victory earlier this month.

Local newspaper reports say others arrested were former Lancashire chief executive Phil Halsall and David McElhinney, who was chief executive of One Connect and later headed Liverpool Direct.

A Lancashire Constabulary spokesperson said: "Four men have been arrested this morning (Monday, May 22nd) in connection with an investigation into conspiracy to pervert the course of justice.

“The men, aged 72, 55, 58 and 56, were arrested at addresses in Preston and Merseyside.

“The arrests are part of a wider long-running investigation into allegations of fraud, although none of the men have been arrested today on suspicion of fraud.

“All of the men have been arrested on suspicion of Conspiracy to Pervert the Course of Justice and Witness Intimidation. They will be interviewed during the course of the day.” All were later bailed until June.

Fitzgerald has temporarily stood aside from his role as chief executive at Liverpool and also from that of interim head of paid service for the Liverpool City Region Combined Authority.

A statement from Liverpool’s elected mayor Joe Anderson said both he and Fitzgerald had spoken to the police about the nature of their investigation and the chief executive, who has been released on bail without charge, “concluded that he will voluntarily step aside from his role for a period until certain investigations are complete.

“This decision has been accepted as the right decision for the city and to enable the council to deliver services without distraction.”

Anderson said Fitzgerald, who joined Liverpool from Lancashire, was neither suspended nor the subject of any disciplinary process.

Mark Smulian