Ashfield District Council said internal checks identified governance issues within the Automated Distribution and Manufacturing Centre (ADMC) project.
Lindum started on the site as main contractor last Summer and the council has now confirmed works were paused in January.
After council officials raised concerns an independent review confirmed that some elements of the project did not follow the Council’s established governance and procurement processes including:
- Work being delivered and paid for before contracts were in place
- Increases in infrastructure costs that should have been escalated for approval earlier than they were
In response, the Council has put in place a series of actions, including:
- Voluntarily pausing works in January to protect the Council and the taxpayer while corrective actions were developed.
- Commissioning an independent external review.
- Strengthening procurement oversight, contract management controls, and internal project governance.
- Beginning work on a refreshed scheme budget to ensure full, formal approval before any new contracts proceed.
Theresa Hodgkinson, Chief Executive of Ashfield District Council said: “We identified these issues ourselves, acted immediately, and we are being fully transparent about the steps we are taking.
“The ADMC remains a transformational project for Ashfield. It is central to our plans for economic growth, business innovation and high-quality employment opportunities in the district.
“All of the work carried out has contributed to the delivery of the project, and payments relate to legitimate work completed on site. There is no suggestion the money has been lost or misused.
“Our focus now is on strengthening governance, and ensuring we are in the strongest possible position to move forward with the project. Our aim is to be back on site in early May, and I’ll confirm as soon as I can what the revised timeframes for the completion of this flagship project will be.”
