Bolsover District Council leader stepped down from a major role during a conduct investigation

Following the launch of an investigation into claims Coun Fritchley had made a ‘homophobic slur’ relating to former Bolsover MP Mark Fletcher, he stepped down as a director of the council’s Dragonfly Development Ltd company which has been subject to disputed claims its operations pose a conflict of interest by combining a public body and a commercial enterprise.

After stepping back from Dragonfly, Coun Fritchley announced on December 4, at a council meeting that the recent investigation into claims he made a ‘homophobic slur’ had concluded he was not homophobic but his language could have been perceived as such and he had therefore breached the council’s code of conduct and he now aims to give some thought to his future.

The Labour councillor, who has also been unwell, told the meeting: “Over Christmas I intend to give some thought to the future and will circulate my intentions in January, 2025.”

Mr Fletcher, who is openly homosexual and was Bolsover’s Conservative MP between 2019 and 2024, had complained to the General Secretary of the Labour Party and to the council’s monitoring officer in June that Cllr Fritchley had allegedly breached the council’s code of conduct.

An independent investigation found Coun Fritchley had breached the general Nolan Principle to lead by example and act in a way that secures public confidence as a councillor, and that he had breached the council’s code of conduct which require members to not bring the role of the council into disrepute for which he says he is ‘truly regretful’.

Following the original complaint in June and the launch of the investigation, Coun Fritchley resigned as a director of the council’s wholly-owned private development company Dragonfly Development Ltd, according to a November council report.

The council’s Dragonfly Development Ltd has already overseen much of the council’s successful building projects but it has attracted disputed concerns from some members of the public about possible alleged conflicts of interest with the mixing a commercial company with a public authority’s work.

One of the concerns had included an alleged conflict of interest with Coun Fritchley’s joint role as council leader and chairperson and director on the Dragonfly Group Board of Directors until his resignation was confirmed in a November council report.

However, Coun Fritchley has argued there was and is no conflict of interest with Dragonfly despite some claiming the council – as a planning authority – may grant planning permission for developments and may loan cash to its own company to deliver on projects.

But Coun Fritchley has insisted the authority is allowed to do this under the Localism Act 2011 and it has been common practice at councils nationwide and he stated the arrangement with Dragonfly makes good financial sense because hiring an external contractor costs more money.

Coun Fritchley was appointed as a director of Dragonfly Development Ltd, in 2019, according to Companies House, and he was also the council’s sole appointed representative to the outside body Dragonfly Development Ltd Board and has also been the council’s leader since 2019.

Bolsover District Council’s Dragonfly Development Ltd was established after Edwinstowe-based Woodhead Construction ceased to have control of the company and fell into administration.

The council attracted concerns about alleged, potential conflicts of interest after about 100 council staff moved over to the company, last year, but the council has previously stated its aims have been to use Dragonfly to create private and social housing which supports the authority’s income and to also use the company to deliver other large capital projects.

Concerning the decision to take on Dragonfly, Coun Fritchley said: “Within eight days we saved jobs. I had favoured another department in the council but we were told we would not make a profit. So time was off the essence and we got all the experts in to advise us on various things and the result is what we have got today.”

The council has stated not only has the company been formed and a board established with sustainable working practices, but they have employed staff, re-engaged local contractors, and completed major building projects including council schemes in Whaley Thorns, Creswell, and Shirebrook.

During the recent council meeting resident Dom Webb asked if the Dragonfly Group of companies, individually or together, present a material risk to the council either financially or reputationally?

Coun John Ritchie, portfolio holder for growth, said: “The council sought expert advice before setting up these to make sure they are fit for purpose. Dragonfly has in place a required board of directors for both companies and the council has a shareholder board.”

He stressed that as a ‘responsible authority’ the council takes seriously its duty in protecting the council and its wholly-owned companies are no different and the council manages risk in everything it does and it has a risk strategy and risk management group that oversees corporate risks.

Coun Ritchie also said there are a number of key documents in place to support the council’s involvement with Dragonfly including a shareholder agreement, a company guidance review, council governance arrangements and a code of conduct for board members and elected members and the company will be subject to an independent third-party review.

He explained the shareholder board makes sure the right decisions are made and the right scrutiny is undertaken and he offered assurances that the council wants Dragonfly to succeed and it does not want it to cause problems for the authority.

The council has previously stated that its aims have been to use Dragonfly to create private and social housing which supports the authority’s income and to also use the company to deliver other large capital projects.

Following Coun Fritchley’s resignation as chairperson and director on the Dragonfly Group Board of Directors, Coun Deborah Watson was elected as chairperson and Coun Anne Clarke was elected as a director.

According to the Government’s Companies House records Dragonfly Development Ltd is a private limited company that develops building projects and it is based at The Arc, on High Street, in Clowne, where Bolsover District Council also has its headquarters.

Companies House also states that there are six directors of Dragonfly Ltd including chief executive Grant Holloway and district councillors Anne Clarke, Emma Stevenson, Janet Tait, Deborah Watson, and Carol Wood.

The council has stated that the councillors on the board of directors do not receive a wage or any extra remuneration and their role is to make decisions on how best to run the company in line with shareholder agreement objectives.

Dragonfly Board members who sit on and attend the council or executive meetings also have to declare an interest and leave, according to the council, on any decision made by the company that requires council approval.

Coun Fritchley has also stated that he regards all Bolsover district residents as shareholders in the Dragonfly company and they have a right to know what the council is doing and why on a regular basis.

He has also said that Dragonfly aims to create growth, new housing, development prospects, new skills and jobs resulting in profits that can be returned to the council to support other initiatives.