Inspectors from accountant PwC are due to prepare their report on alleged impropriety at Tower Hamlets LBC in a fortnight’s time.
They were sent in by communities secretary Eric Pickles just before last May’s mayoral and council elections after he received a dossier of allegations about abuses including governance failure, poor financial management and fraud.
A Department for Communities & Local Government statement said PwC had “now substantially completed their inspection fieldwork and are in the process of producing their report”.
Information would be sent for fact checking both to Tower Hamlets and individuals interviewed, who must make any response by 25 September, after which PwC will complete the report and send it to Mr Pickles.
“Once the secretary of state has received the report, he will give it careful consideration,” the statement said.
“Subsequently, in due course, he intends to exercise his statutory power to publish the report, and to make any statement he considers appropriate to Parliament”, a course that could lead to intervention.”
PwC’s appointment was the subject of a failed bid for judicial review by Tower Hamlets, dismissed as “hopeless” last week by a judge.
The council is now seeking an oral hearing in court on the issue.