Paul Dennett says Salford inquiry into Dérive is underway
salford council is investigating its own housing company Dérive after concerns were raised during financial checks. Paul Dennett told councillors on April 29 that “nothing is being hidden” and said formal investigations were underway.
The inquiry is looking at whether any financial mismanagement or misconduct took place at the wholly council-owned firm, which was set up in 2017 and has handled more than £10m of public money. Council officers reportedly spotted irregularities in Dérive’s accounts after asking the company for information, including problems with the accuracy and completeness of record keeping.
Dérive accounts and resignations
Five directors and one secretary have stepped down from leadership roles since February, according to public records at Companies House. Dérive was also a month overdue in submitting its annual accounts, adding another layer to the concerns now under review.
A senior councillor called it “disgraceful” that elected members in the city “haven’t been updated” on the matter. The criticism points to a second pressure point for Salford council: the investigation is not only about what happened inside Dérive, but also about how much of it was shared with councillors while the checks were under way.
Dennett email to councillors
In the email, Dennett wrote: “Currently formal investigations are underway involving third party professional support, pertaining to matters of governance, regulatory compliance, finance & accountancy, audit.” He also wrote: “Once these initial formal investigations are concluded further next-steps will be considered, which could potentially have implications for industrial relations and people's employment within Derive RP and Derive Group.”
He added that “nothing is being hidden.” The email gives the clearest sign so far of what Salford council is doing next: continuing formal checks before deciding whether the issue moves into wider staffing and relations questions inside the company.
Tracy Kelly and Dérive
The three councillors who were former directors are not under investigation and are not suspected of wrongdoing. One of them, Coun Tracy Kelly, remains a named figure in the company’s recent leadership history, but the current inquiry is focused on the financial checks and the records they brought into question.
For Salford residents, the immediate question is not whether Dérive exists — it does — but whether the council-owned housing firm’s finances, accounts and governance can withstand a formal review after a run of resignations, delayed filing and irregularities flagged by officers.
