Derbyshire council’s development company directors fear for staff jobs and projects after vote to dissolve board

Labour-controlled Bolsover District Council’s relationship with its wholly-owned Dragonfly development companies has been criticised following a Local Partnerships’ review which identified risks including a lack of good governance, a lack of a business plan and a conflict of interest between the roles of the organisations.

The council has two wholly-owned Dragonfly companies including the Dragonfly Management company – representing the services that used to be run by the authority – and the Dragonfly Development company, which is involved in construction of council properties and social housing as well as developments for third parties.

Dragonfly Board of Directors’ chairperson Deborah Watson strongly disputed the criticism aimed at Dragonfly Development and argued any lack of good governance lies with the council and its officers.

However, the council’s Executive Committee voted at an Emergency Meeting on June 16 to replace the Dragonfly board with a new interim team while it considers further review recommendations.

Coun Watson, who is also the council’s Independents’ Group Leader, said: “I have been on the authority for 18 years. Some of those making this decision have only been here two years and I really think it was the most exciting and brave and visionary project we have ever been involved in and they have summarily dismissed it.”

Despite concerns raised for residents, projects and staff by Coun Watson and two fellow directors Independent Coun Janet Tait and Reform UK’s Carol Wood, the council’s Executive committee voted to dissolve the current Board of Directors after listening to Labour Coun John Ritchie’s proposal and to install an Interim Board of Directors.

The new Interim Board of Directors was identified by Coun Ritchie as current Dragonfly director and chief executive officer Grant Galloway, council Deputy Monitoring Officer Louise Arnold, council Assistant Director Mark Giles, and council Principal Accountant Sharon Lynch.

Coun Ritchie told the meeting: “The council’s daily business continues as normal. There will be no change to the current working arrangements of the staff. All staff continue to be valued by the council and we will ensure they are fully consulted on any proposed changes. The day job will continue.”

He added: “I would like to thank the current Dragonfly board for their time and commitment over the last few years and state the dissolving of the board is in the best interests of both the company and the council.”

Coun Watson claims Dragonfly Development was given just ten minutes’ notice about the council’s original public announcement on the review’s findings and she feels the authority is using the Dragonfly Development Company Board of Directors as ‘scapegoats’ for their own shortcomings.

She added: “We should have got around a table to discuss it and not call someone in to trash it all. All this could have been sorted by proper discussion and debate and with a democratic vote.”

Overall final decisions, based on recommendations for Dragonfly is expected at a meeting of the council’s Executive on July 28.

Coun Watson feels there is nothing to suggest that the provisionally-named new board is any more or less qualified than the current board and she questioned its impartiality .

Bolsover District Council has stated that, by voting to dissolve the current Dragonfly Board of Directors, it has followed one of the recommendations from the review and it will be putting arrangements in place for a replacement interim board until the future of the companies has been decided.