THE decision to place the “Bank of Bournemouth” under review was buried at the end of a lengthy document – and the council has not answered key questions about the struggling scheme.

After it emerged customers were being turned away from the Community Finance Initiative and the company’s website stopped working, the Daily Echo asked the authority if it had ceased trading.

A council spokesman confirmed it had been “temporarily suspended” and said a decision on this was taken in October.

There was, however, no verbal discussion about this at either the council's October or November cabinet meetings.

The spokesman said that members were asked to take note of a paper, included in October's 204-page cabinet meeting agenda, in which a review of the initiative was suggested.

The initiative was mentioned in paragraph 48 of 61 of the budget monitoring report – the last item on the agenda – and made no mention of the impending suspension of its operations.

It said: “The current 2015/16 forecast is showing that BCFCL (Bournemouth Community Finance Company Limited) will incur costs of £110k to provide its activities.

“The company is currently considering its options with this initiative following the outcome of the business case presented to cabinet on the June 22.”

The council failed to provide the following information when asked by the Daily Echo:

  • The cost of launching the scheme
  • The loss it has incurred
  • The date the suspension will be reviewed
  • The status of its customers

The decline of the “Bank of Bournemouth” is the latest blow in a torrid few years for the council’s finance department.

In 2011 chief accountant Stephen Parker was suspended and escorted from the Town Hall after emailing concerns to members about the council’s outsourcing deal with Mouchel.

He said the council had failed to consider options that would have provided “a more balanced financial and risk-assessed contract”.

Civic chiefs immediately suspended Mr Parker on full pay before later re-instating him and acknowledging the accountant had made his thoughts public with “honest intent”.

And last year finance director Liz Wilkinson was suspended and later resigned.

An employment tribunal regarding her departure from the council was held in September, the ruling of which has yet to be made.

Last month, the council’s two most senior finance officers announced on the same day their decision to leave the authority.

Acting executive director of finance Ian Milner, who earns £103,850 a year, resigned after starting his job in October last year.

Director of strategic finance Robin Ingleton, who started in September 2012 and is at a grade paying between £79,927 and £89,960, is taking early retirement.

Council leader John Beesley said there was no connection between the decisions of Mr Ingleton and Mr Milner.

Mr Ingleton will leave in March and Mr Milner in February.