Homecare contract award statement

We are issuing this statement in the interest of transparency and to counter the misinformation with regards to the award of homecare contracts. The Council made a decision in Cabinet on 18 June 2025 to award interim contract to all but one current supplier pending a full re-procurement exercise of the homecare service.  The decision not to award an interim contract to Apasen was due to a number of concerns.

Prior to the decision by Cabinet, the decision went through a full pre-scrutiny process. On 11 June 2025 the Council’s Overview and Scrutiny met to scrutinise the contract award decision, the scrutiny committee which is a politically representative committee had access to all information relevant to the decision including independent audit investigation reports. These reports cannot be disclosed due to legal professional privilege. The Council does not waive legal professional privilege in respect of these reports by issuing this statement.

Cabinet also received professional advice from all relevant officers following a thorough due diligence exercise which involved Legal, Finance, Procurement and Adult Social Care departments.

The Council became aware of concerns relating to Apasen as it received a high level of whistleblowing complaints and accordingly appointed Price Waterhouse Coopers (PWC) to undertake a detailed audit of the supplier.

The PWC investigation identified significant financial, administrative and governance weaknesses as well a significant overpayment by the Council for services provided in a short space of time in 2021.  It also found an absence of a robust internal control environment that underpins good governance within the organisation which gives rise to increased risks of fraud and error.  Apasen  did not alert the Council to this nor make any attempt to repay it and currently are disputing the existence of the overpayment. This highlights significant financial control weaknesses which puts public money at risk and undermines the Council’s trust with its contractor.

These concerns leave the Council at risk when trying to demonstrate that it is achieving statutory Best Value in the delivery of homecare services. The Council owes a fiduciary duty to taxpayers and must ensure there is and confidence in its suppliers to safeguard public funds and the care of the vulnerable residents.

The advice from officers, the legal advice and numerous whistleblowing complaints and independent audit investigation reports were all pertinent to the Cabinet’s deliberations.

The decision made by Cabinet on 18 June 2025 ensures the Council:

-       Delivers the highest standards of care and best model of continuity of service provision for vulnerable adults in Tower Hamlets.

-       Demonstrates value for money to our wider taxpayers

-       Mitigates the risk of contract failure

-       Protects the reputation of the council

The Council’s top priority remains the safety and wellbeing of all residents who rely on our services. We wish to reiterate that we are working closely with all affected providers to ensure that care continues without disruption and that transitions are handled with compassion and clarity. Equally important is our commitment to the dedicated staff who deliver homecare services. We are actively exploring all available options to support continued employment for those impacted to ensure a smooth transition.