02/12/2024
Birmingham City Council, recently declared effectively bankrupt, finds itself embroiled in a series of deeply troubling controversies surrounding its taxi services. Accusations range from alleged multi-million-pound overpayments to a school taxi firm and suspicious contracting practices, to revelations about a senior council official's close ties with a major contractor and the licensing of drivers with serious criminal histories. These issues collectively paint a stark picture of a council struggling with transparency, accountability, and maintaining public trust, raising significant questions about the use of taxpayer money and the safeguarding of citizens, especially vulnerable children.
The £11 Million Overpayment Allegations and Identical Contracts
At the heart of the ongoing scandal are claims that Birmingham City Council overpaid a school taxi firm, Green Destinations Ltd (GDL), by an astonishing £11 million. What makes these allegations particularly alarming is the curious pattern discovered in public procurement data: all 163 school-run taxi contracts over the last three years were listed at *exactly* £64,938.27. This figure, branded as 'not credible' by sources, appears to have been deliberately set just below the legal threshold (initially £65,630, later £70,778) at which public bodies are required to publish detailed tendering transparency data, such as the number of bids received and the award criteria. Critics suggest this move allowed the council to 'bypass due process' and avoid proper public scrutiny in the awarding of these contracts.
Despite the vastly differing work associated with each cab contract – from varying routes to different schools and passenger needs – every single deal with every single taxi supplier was recorded at this identical price. Leaked data, however, tells a very different story. While public records suggest GDL held contracts worth around £4.75 million, actual invoice data reveals the council paid the firm over £41.8 million since 2020. This includes approximately £1.1 million in 2020, £6.1 million in 2021, and nearly £18.1 million in 2022. Between January and July of the current year alone, GDL received more than £16.5 million, indicating a potential annual bill exceeding £23 million if payments continue at this rate.
Further discrepancies are highlighted by leaked data suggesting GDL operates 330 routes across 68 schools with annual costs far exceeding the published £64,938.27. For instance, 24 routes to South & City College are reportedly worth over £460,000 per year, more than seven times the declared amount. Perhaps even more concerning is that public data appears significantly out of date, still showing routes operated by GDL as being with their original, cheaper providers. For example, GDL's most lucrative contract, valued at over £1.6 million annually for Calthorpe Academy, is publicly listed as a £64,938.27 contract with Touchwood Private Hire Ltd. Similar discrepancies exist for Longwill Primary and Uffculme special school, where GDL's substantial earnings are not reflected in the public record.
This table illustrates the stark contrast between public contract declarations and the actual payments or estimated costs:
| Contract Example | Publicly Declared Value (Per Contract) | Actual Annual Cost/Payment (Leaked Data/Invoices) | Discrepancy |
|---|---|---|---|
| All 163 School Contracts | £64,938.27 | Varies significantly (actual total £58.56M Council Outgoings) | Vast underreporting |
| GDL Total Contracts (Public) | £4.75 million (for 50 contracts) | £41.8 million (since 2020) | ~£37 million difference (since 2020) |
| South & City College (GDL) | £64,938.27 | >£460,000 | >7 times higher |
| Calthorpe Academy (GDL) | £64,938.27 (listed with Touchwood) | >£1.6 million | ~25 times higher |
| Longwill Primary (GDL) | £64,938.27 (listed with Select Private Hire) | >£670,000 | ~10 times higher |
| Uffculme Special School (GDL) | £64,938.27 (listed with Plaza Cars) | >£650,000 | ~10 times higher |
| Leycroft Academy (GDL) | No entry in public data | >£640,000 | Not disclosed |
| The Hive College (GDL) | No entry in public data | >£540,000 | Not disclosed |
A Deeply Troubling Conflict of Interest: Council Official and GDL
Adding another layer to Birmingham Council's woes is the revelation of a concerning conflict of interest involving a senior council official. For two years, from 2020 until early last year, a senior official responsible for overseeing school transport safety at the Labour-run council worked from the same small church community centre in West Bromwich as Green Destinations Ltd. This rundown office, which is not even within Birmingham's boundaries but in neighbouring Sandwell, became the operational base for both the regulator and the regulated.
During this period, GDL's business with the council exploded. Their profits soared from a modest £83,250 in 2018/19 to an astounding £1.6 million by April 2022 – a staggering 1,900 per cent increase in just three years. Leaked data suggests GDL became the dominant school travel supplier in Birmingham, securing approximately 460 of the council's 1,300 routes by 2023, with most of the more than 300 new routes created in 2022/23 reportedly handed to them.
Even more damning are claims from rival cab firms, such as Great Barr Cars, that they were directed by the council to send their drivers to this very West Bromwich address to collect mandatory ID badges. Without these badges, drivers would be prohibited from operating school transport routes. Once there, drivers were allegedly approached by GDL staff who attempted to 'poach' them, suggesting more lucrative opportunities if they switched allegiance. Great Barr Cars, which previously ran around two dozen routes, has since lost all its school transport contracts with Birmingham Council, largely to GDL.
Sources close to the matter have described the situation as 'absolutely abnormal' for a compliance officer to routinely work from a supplier's office, and suggested that if senior council staff had been aware of the arrangement, the official would have been 'sacked for gross misconduct.' The council, in response, stated that its compliance team had 'rented a room on a few occasions in 2020 and 2021' at the Beeches Road Community Enterprise Centre for 'training purposes and issuing licence badges,' and that the site had not been used since early 2022. However, they did not directly address the claims of undue influence or the significant increase in GDL's contracts during this period.
Licensing Lapses: Cabbies with Criminal Pasts
Beyond the financial and ethical controversies, Birmingham City Council faces grave questions regarding its taxi driver licensing process. An investigation by the Birmingham Mail revealed that 114 cabbies with criminal records – including four who had been jailed for violence – were granted licences by the council in the last two years. These individuals collectively committed over 300 offences, ranging from GBH (Grievous Bodily Harm) and possessing drugs to dangerous driving, speeding, and benefit fraud.
Specific examples are particularly alarming: one driver served four and a half years in jail for wounding with intent to commit GBH in 2009, while another spent three years in a young offender institution for the same offence in 2007. Other licensed cabbies had convictions for assault, failing to carry out bookings for disabled persons with guide dogs, and multiple driving offences including dangerous driving and driving while disqualified. One individual was granted a licence despite having a record of sixteen offences between 1987 and 2005, including common assault and drug possession.
These revelations have sparked serious concerns from the Birmingham Black Cab Drivers Association. Mohammed Taj, a representative, expressed surprise and questioned whether individuals with violent tendencies should be trusted in a position where they frequently deal with vulnerable members of the public. He stated, “Having a conviction for violence suggests a person has violent tendencies and you have to ask yourself whether such people should be trusted to remain in a position of trust as taxi drivers, often dealing with vulnerable members of the public.”
The council, however, defends its decisions, stating that these 114 cabbies represent just 1.8 per cent of the 6,250 licences granted annually. They maintain that they 'will only grant, renew or allow a person to hold a driver’s licence if it is satisfied that the person is a ‘fit and proper’ person.' They added that a criminal record 'will not necessarily disbar a person from obtaining or holding a ‘taxi’ driver’s licence unless the council considers the nature of the convictions to render them unfit,' reiterating that 'Passenger safety is paramount and we make every reasonable step to reduce any risks to the public.'
Unanswered Questions and Ongoing Scrutiny
Despite the mounting evidence and public outcry, Birmingham City Council's official responses have been largely generic, failing to directly address many of the specific allegations. A spokesperson stated that the council's Dynamic Purchasing System (DPS) process is 'fair and compliant in-line with procurement law' and that they have been 'clear on how contracts have been awarded.' They also referenced multiple internal audits of the Children and Young People's Travel Service, which, following a whistleblowing complaint, found 'no evidence of fraudulent practices or “wilful” wrongdoing' and no recommendations 'regarding favourable conditions for any provider.'
However, these internal audit findings stand in stark contrast to the detailed discrepancies revealed by leaked data and the claims made by affected taxi firms and sources. The council has not provided comprehensive explanations for the identical contract values, the vast disparity between declared contract prices and actual payments to GDL, or the unprecedented surge in GDL's profits and market dominance coinciding with a senior official's presence at their operating base. The lack of direct answers only fuels further suspicion and calls for deeper investigations into the council's operations.
Frequently Asked Questions (FAQs)
Q: Was Birmingham City Council actually bankrupt?
A: Yes, Birmingham City Council effectively declared itself bankrupt in September 2023, issuing a Section 114 notice. This means it cannot meet its financial obligations without emergency measures, leading to severe cuts in public services. The taxi contract controversies are part of the broader financial challenges facing the council.
Q: What is Green Destinations Ltd (GDL)?
A: Green Destinations Ltd is a local taxi firm owned by Jameel Malik, based in Birmingham (though with an office previously in West Bromwich). It has become the most dominant school travel supplier for Birmingham City Council since 2020, seeing its profits and the value of its contracts with the council dramatically increase.
Q: Why were all 163 school taxi contracts listed at exactly the same price?
A: All 163 school taxi contracts were publicly listed at £64,938.27. This figure was approximately £700 below the threshold at which public bodies are legally required to publish detailed tendering transparency data. Critics and sources allege this identical pricing was a deliberate strategy to 'bypass due process' and avoid public scrutiny over how these multi-million-pound contracts were awarded.
Q: How many taxi drivers with criminal records were licensed by Birmingham City Council?
A: An investigation revealed that 114 cabbies with criminal records, including those with convictions for GBH, drug possession, and dangerous driving, were granted licences by Birmingham City Council in the last two years. The council states this represents 1.8% of the 6,250 licences granted annually and that they assess each applicant based on a 'fit and proper' person test, prioritising passenger safety.
Q: What is the council's official stance on these allegations?
A: Birmingham City Council maintains that its Dynamic Purchasing System (DPS) process for awarding contracts is 'fair and compliant' with procurement law. Regarding the council official working from GDL's premises, they stated the team rented a room for 'training purposes and issuing licence badges' on a few occasions in 2020 and 2021, and has not used the site since early 2022. They also refer to internal audits that found no evidence of fraud or 'wilful' wrongdoing in the school transport service. However, they have not provided specific answers to many of the detailed accusations.
Conclusion
The array of allegations against Birmingham City Council concerning its taxi services – from the suspicious uniformity of school transport contracts and alleged multi-million-pound overpayments to the deeply concerning proximity of a senior official to a major contractor and the licensing of drivers with serious criminal histories – paints a troubling picture. These issues collectively erode public trust and highlight systemic vulnerabilities within the council's procurement and licensing frameworks. As the council navigates its financial difficulties, the urgent need for comprehensive investigations, greater transparency, and robust accountability measures becomes paramount to restore confidence and ensure the safety and proper use of public funds for the citizens of Birmingham.
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