Wirral council chiefs are to be asked to write off more than £130,000 of debts.
The cash is part of millions of pounds of the so-called “toxic debt” problem first revealed by the ECHO.
Last year, an external report commissioned by the ruling Labour group in a bid to “clean up the council” said former senior officers knew of the problem but failed to act or tell councillors.
In total, it was found there were debts totalling £24.7m, of which only £14.8m is thought to be collectible, primarily focused on the Department of Adult Social Services (DASS) and dating back many years.
Since then, a team has been working on “cleansing of all long outstanding DASS debt” identified in the independent report.
The problem was discovered in 2012 when council officers trying to tackle the authority’s budget deficit discovered the bad debts had been effectively treated as assets.
The independent report said: “Over the years, the chief officers in DASS, legal department and the finance department were aware of the growing problem on aged debt.”
But it blamed “a corporate failure to understand the scale and consequence of this issue”.
When the authority’s ruling cabinet meets this week council bosses will be told the total debts processed so far amount to £6,595,007 and that £2,812,410 has so far been written off.
Councillors will be asked to approve plans to write off a further £130,137.36 of “outstanding client contributions”.
The report said: “The Collection and Recovery Team has already endeavoured to recover the outstanding client contrib-ution debts without success.
Source : Click Me