Barking and Dagenham Post reporter Karen Moss's (pictured with Channel 4 reporter Benjamin Cohen) expose of widespread Town Hall fraud in the borough featured on Channel 4 News (April 28) and highlighted the dangers behind a new council paper set to launch in May.
Karen's detailed dossier uncovered the results of a report by the council's internal auditors which revealed fraud committed among colleagues at the Town Hall. It also highlighted the importance of an independent local newspaper in bringing local politicians and councils to account for their actions
Karen revealed a catalogue of dishonesty in which council workers were sacked or resigned last year after it was discovered they were fraudulently claiming benefits and expenses, holding down other full-time jobs or swindling tens of thousands of pounds out of the council.
The article has also helped reignite a national debate and government concern about local councils launching their own free-sheets, taking advertising and sales away from established local papers and thereby threatening their impartial reporting.
Channel 4 media and technology correspondent, Ben Cohen, took to the streets of the borough on April 27, to talk to Post reporter Karen and find out people's views.
There was a mixture of responses from families in Dagenham, with some thinking the council's new paper, The News, was a good idea and others disagreeing. A keen point of discussion was the fact that The News would not report negative stories about the council.
Reporter Karen's story on fraud investigations into council staff was used on TV as an example of how the local press works for the public and makes council processes accessible and transparent.
Council chief executive Rob Whiteman has written to the paper, saying: "Our new newspaper will be delivered to every home and business and cost £70,000 less to produce and distribute than continuing with our three publications and placing advertisements in local newspapers."
"As well as giving better value for money to the council it will be free for residents and businesses which helps during these difficult times."
The Post's figures reveal a different story however. Through a Freedom of Information Act enquiry, the paper has learned that the council will in fact spend the entire former £250,000 advertising budget just on printing and distributing their free-sheet.
They will also spend almost £320,000 on wages and expenses for eight staff for the paper which will not carry crime or court stories but merely update families on events and council decisions.
Post editor Barry Kirk said: "I have to say I am very disappointed that Barking and Dagenham Council have jumped on the 'let's make newspapers' bandwagon. Combined with the recession this type of action is having a devastating effect on the newspaper industry."
"The basic role of democracy is that everyone is open to question with information that is freely accessible, impartial and accountable."
"We see these publications, with all the implications of public money and resources, as unfair competition. It's certainly not a level playing field and is does not take that much imagination to see how useful this newspaper is going to be for those with a political message."
To access the Channel 4 News report click here.
