THE Audit Commission has criticised a council over the awarding of contracts for a multi-million pound sea defence scheme.

Now, leaders of Scarborough Borough Council's political groups are to carry out an investigation into the work, the cost of which has risen to £40m.

A report by the commission says that the council awarded the consultancy work to international marine engineering company High Point Rendel and that a "bogus" report was made to justify the action.

It adds that the council, which has been carrying out extensive sea defence work at East Pier and Marine Drive because of damage caused by storms and heavy seas, had seen the fees from High Point Rendel increase from £1.2m to £2.4m.

The authority, it says, failed to put consultancy contracts out to tender Europe-wide, against the law and the council's rules.

The commission says that High Point Rendel had been awarded contracts for consultancy work at Robin Hood's Bay, Staithes, Whitby Haggerlythe and in Scarborough's North Bay and Holbeck areas, which also breached the rules.

Its report says that there was a compelling case for bringing to the public's attention what were considered significant shortcomings in the way contracts had been handled.

The commission says the specification and terms were not sufficiently robust.

Councillors had not been told about the implications of not ordering a site survey and that three contracts were awarded to High Point Rendel illegally, says the report.

A statement from the council said the issues raised were being taken very seriously but, while it was not seeking to hide away from the matter, a proper process needed to be followed.

The issue will go before the council's cabinet on Tuesday and full council on January 5.