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The forensic audit panel was announced by the new Mayor of London, Boris Johnson, on Thursday.

It has been tasked with recommending procedures to guarantee probity and transparency, as well as identifying areas where efficiencies can be made and resources redirected to the new Mayor's priorities.

Allegations of mismanagement and corruption

Heading up the forensic audit panel will be Patience Wheatcroft, briefly editor of The Sunday Telegraph and a long-serving business editor of The Times. She is currently a non-executive director of Barclays PLC and Shaftesbury PLC.

The other members include Stephen Greenhalgh, leader of Hammersmith and Fulham Council, Patrick Frederick, chief executive of Aimex International and former head of global custody operations for JPMorgan, Edward Lister, leader of Wandsworth Council.

Andrew Gordon, head of investigations within the forensic services group of PricewaterhouseCoopers, will act as independent expert advisor to the panel.

The review of the LDA will focus on allegations of mismanagement and corruption in the awarding of grants, how conflicts of interest are detected and recorded and on the monitoring of grant recipients' performance in delivering what they promised.

Publicity and advertising expenditure 

The LDA part of the panel’s work will also suggest new processes to guarantee probity and value for money. 

The review follows a long-running feud between former Mayor of London Ken Livingstone and the London newspaper The Evening Standard, over allegations of mismanagement of grants administered by the LDA under Livingstone’s key aide Lee Jasper.

The review of the GLA will focus on publicity and advertising expenditure, the use of external consultants and agency staff and all areas where expenditure has grown since 2004.

During the recent mayoral election campaign it was revealed that the GLA employs 70 press officers, four times more than 10 Downing Street. Johnson has already said that he expects to be able to cut at least 12 of these positions.

The panel’s review of the GLA will also suggest areas where savings can be made without compromising performance. The panel will present initial findings and a progress report to the Mayor within 30 days and a final report within 60 days.

Fearless and dogged in pursuit of the truth 

Johnson said that he was elected on a promise to provide Londoners with better value for money from their taxes.

“I am delighted to have recruited some of the most capable and experienced people in the capital to scrutinise recent performance at the LDA and GLA and suggest ways to prevent mismanagement and waste in future,” he added.

He hailed Wheatcroft as “fearless and dogged in pursuit of the truth” about recent practices at the LDA. 

“My administration has much to learn from Eddie Lister and Stephen Greenhalgh's experience of delivering value for money to London taxpayers and will benefit greatly from the financial acumen of Patrick Frederick,” the Mayor said.

Wheatcroft called it crucial to understand how public money has been wasted or misspent in the past so that we can make sure that it doesn't happen again.

“We will leave no stone unturned in our efforts to ensure that the LDA and GLA deliver value for money to the taxpayers of London," she warned.

Lifecycle of fraud 

Gordon has more than 17 years experience as a forensic accountant and has been a PwC partner for 10 years.

The group plays a lead role in the lifecycle of fraud and other avoidable losses, providing reactive investigative services and proactive remedial and compliance services to clients in the private and public sectors.

His team comprise over 150 dedicated partners and staff who specialise in areas such as investigations, fraud risk management, avoidable loss identification and mitigation, cost control, anti-money laundering, anti-bribery and corruption and corporate intelligence. 

The Forensic Services practice is supported by a team of forensic technologists who provide data mining and electronic discovery services.

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• Mayor of London