THE chief accountant suspended by Bournemouth Council laid out a devastating series of criticisms of its second outsourcing deal with Mouchel.

Stephen Parker condemned a report on the deal, saying it “feels like a sales document prepared by council staff on behalf of the commercial partner”.

He emailed his concerns to councillors before a cabinet meeting and copied in leader Peter Charon and his own boss, Mike Forrester, who has been overseeing the process.

Mr Parker was subsequently suspended and escorted from the town hall to applause and handshakes from some of his colleagues.

Bournemouth council last year transferred four departments to Mouchel and the deal has paved the way for a new second deal to transfer finance and human resources.

Mr Parker’s lengthy email warns of “serious doubts about the value for money and deliverability of the contract”.

He said of last year’s deal:

• The savings proposed in the medium-term financial plan have been reduced by £42 million over four years;

• The total cash spent by the council on the outsourced services is now £3 million greater than the pre-contract budget.

Mr Parker’s said the deal report did not properly consider the rival in-house bid from council staff and made five “errors” or changes in its assessment of that bid.

He said: “There would appear to be a lack of detailed financial understanding and a lack of financial knowledge and appraisal skills.”

Mr Parker went on to write of “a failure to consult with staff...that indicates a clear bias towards a preferred external solution and must raise doubts about the objectivity over the preparation of the report.”

Most of all, he believed that the “contract price” would only end up paying for fewer than 17 posts, which he did not believe to be a “robust” enough team, compared with the 30 in the council’s in-house bid.

And he argued the reports did not asses the inherent risks of the Mouchel deal, like loss of control and flexibility, increased costs through contract changes, conflicts of interest and reduced service capacity.

Bournemouth council said yesterday it would not comment because the email contains some confidential information.

Senior councillors have praised Mr Parker for sending the email that led to his suspension.

Cllr Sue Levell, leader of the Liberal Democrat group, said: “The email isn’t a desperate action from someone trying to keep their job, it’s a plea from someone telling the council it’s making a grave mistake.

“This is a man’s livelihood. He tells us the truth and this is what happens.”

Cllr Anne Rey, leader of the Independent group, said: “He has been treated disgracefully. He is one of our best officers, who has been with the council for many, many years.”

Mr Parker’s suspension means he cannot speak at an audit committee meeting planned for October 25 that will discuss the deal.

David Sugden, who was named the interim chairman at Mouchel on Thursday, stepped down yesterday after reportedly losing the backing of the company’s lending banks.

Mouchel has admitted it faces possible breaches of banking covenants and wants to refinance its £170m of bank facilities.

Sir Michael Lyons, the former BBC Trust chairman, has now taken the position.