Brighton and Hove council’s cash collector sacked for failing to hand over our money

The company that collects millions of pounds of cash each year from the city’s parking machines, offices and schools has been sacked for failing to hand over the money.

Brighton and Hove City Council has appointed a replacement contractor to start work in just over a week’s time.

And it is contemplating taking legal action against the Burgess Hill business Coin Co International (CCI) if it doesn’t repay the cash that it has collected.

The council declined to say how much was owing because the figure is changing day by day.

But it said: “In January 2014 it became evident that there were delays in funds being transferred to the council, which continued for some months thereafter.

“The balance of funds due to be paid over continued to rise and, given the volume of cash collected daily from parking meters and other locations, immediate action was necessary to limit the potential financial risks to the council.”

The council gave CCI a deadline to hand over all outstanding money last month and when it failed to do so the council ended the contract.

A repayment plan is expected to lead to CCI paying up but the council added: “Failure to comply could result in action via the courts which may have implications for the commercial viability of the company.”

CCI operated with a good track record from 2007 to 2013.

It was being paid almost £300,000 a year to bank more than £11 million cash from parking meters and £8 million cash and £21 million in cheques from council offices and schools.

It was allowed to hang on to the funds for up to ten days, earning interest on top of the fees paid by the council.

A London company called BDI Securities has been handed the contract for two years but will charge £466,000 a year. The council also faces a bill of £15,000 for bank charges as a result of the problems.

The council said: “Although notice has been given on the contract, CCI will continue to provide services to the council until (Sunday) 3 August.

“Cash and cheque collections are therefore continuing with around £350,000 in cash and £300,000 in cheques being collected weekly.

“CCI also continue to pay over funds daily from both current and earlier collections and therefore the amount outstanding will only be known when the contract finally ceases.

“We will be working with CCI to ensure that any payments outstanding at the cessation of the contract are paid over to the council as soon as possible.”