The contract in question is a three-year deal worth £400,000 awarded by the council to ECR in April 2007. Under the deal the not-for-profit company has been running bring sites across the Eden council area for cans, foil, paper, plastic, card and glass.
Cllr Nineham was arrested in dawn raids last week (August 21) carried out by the police and trading standards. He was arrested along with a 40-year-old woman and two men, aged 39 and 42, respectively, on suspicion of conspiracy to defraud, commit fraud and also fraudulent trading.
All parties detained have since been released without charge on police bail. Cllr Nineham has been bailed until November, while the other three have been bailed until December.
A spokesman for Eden district council claimed that there had been no conflict of interest in ECR being awarded the three-year contract by the local authority while its leader was acting as managing director for the company.
He told letsrecycle.com: “We had a competitive tendering process and his list of interests were there on the council website clear for all to see. They are all there for the councillors and members of the public to view as a matter of record.”
The council's arrangement with ECR has been suspended while the investigation is on-going and the council's kerbside recycling contractor Cumbria Waste Recycling will temporarily take over the service.
Nobody at ECR was available for comment at the time of publication.
Leader
Cllr Keith Phillips, deputy leader of Eden district council, said: “Cllr Nineham offered his resignation to the Executive as he wishes to concentrate on addressing the allegations against him and clearing his name.”
“He did not wish the issues he is facing to reflect on the council's reputation and his resignation will now go before a full council meeting at the earliest opportunity,” he added.
Cllr Nineham was elected to the council in 1999 and appointed as leader of Eden district council in June 2008 under the change to its political management.
A new council leader will now need to be appointed by the full council. The leader will then nominate his/her executive, which requires approval by full council. There will need to be a by-election in Penrith West in due course.
During the interim period before the election of the new leader, the chief executive will, if necessary, take any urgent decisions required in consultation with group leaders and senior members.
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