Former Oakham Mayor Cllr Paul Ainsley
A major governance crisis is unfolding at Oakham Town Council, as the council’s financial operations have been thrown into disarray following the freezing of its HSBC bank accounts. The lockdown of these funds, which are estimated to hold £350,000 in council reserves and vital Community Infrastructure Levy (CIL) money, has been directly attributed to a series of unauthorised and reportedly inaccurate communications initiated by Councillor Paul Ainsley.
The situation came to a head when it was revealed that Cllr Ainsley bypassed standard council protocols to contact the HSBC safeguarding team. According to accounts provided by fellow members, the councillor attempted to seize control of the council’s financial affairs without any prior resolution or mandate from the full council body. During these unauthorised interactions, Cllr Ainsley allegedly provided demonstrably false information to bank officials, explicitly stating that the Town Clerk, Chris Evans, had terminated his employment with Oakham Town Council. This claim, which has been proven false as Mr. Evans remains in his role appears to have been the catalyst for HSBC’s decision to intervene. The Clerk is currently on leave.
The fallout from these actions has been severe. An official letter from the HSBC Safeguard Team, confirms that the accounts are currently under a strict "safeguard review." The bank has acknowledged being informed that the primary user/signatory had allegedly left the council, and as a result, restrictions have been imposed, effectively paralysing the council’s ability to access its own funds. HSBC has made it clear that these restrictions will remain in place until the council completes a formal verification process and updates its account mandates a cumbersome and time-consuming administrative hurdle forced upon the council by the initial misinformation.
The professional and ethical implications of these actions have sparked outrage among other elected members. At a meeting this past Monday, two councillors sumbmitted formal questions asking Cllr Ainsley to produce the specific council resolution that authorised his contact with the bank and his representation of the council’s financial interests. Despite these formal inquiries, Cllr Ainsley has so far refused to explain his actions or account for the misleading information provided to the bank.
The freezing of these accounts represents a significant operational failure that has left the town council unable to conduct its financial business as usual. As the council struggles to restore access to its reserves, the broader issue remains the lack of accountability and the potential for a single councillor to unilaterally jeopardise public funds. With no clear explanation for the unauthorised attempt to seize control of the accounts, the council now faces the urgent task of rectifying the bank’s records while addressing the severe breach of governance protocols that has led to this unprecedented financial lockdown.
Oakham Town Council Chairman Says:
"As Chairman of Oakham Town Council, I feel it is necessary to provide clarity regarding the current status of our HSBC accounts and the events that led to this situation. My awareness of these issues began when one of our two official signatories approached me, expressing deep discomfort after being pressured by Cllr Paul Ainsley to sign documentation that would have granted him sole control over the council’s accounts.
Compounding my concern, I was subsequently notified by another member that they had contacted the police to report Cllr Ainsley regarding separate, serious allegations concerning other bank accounts held by the council. Given the gravity of these potential financial irregularities, I immediately sought answers from Cllr Ainsley regarding his actions concerning our HSBC mandate. Rather than providing transparency or a legitimate explanation for his conduct, Cllr Ainsley simply informed me that, due to the nature of the allegations reported to the police, he would be stepping back from the HSBC accounts.
The resulting freeze on the public funds, which include vital reserves and Community Infrastructure Levy (CIL) money, is an incredibly serious matter. I am, however, relieved that the HSBC fraud department has taken decisive action to safeguard the public money held within these accounts. It will be the council absolute priority is to ensure the integrity of the council's finances, and the Locum will be working diligently to resolve the requirements set by the bank to restore normal operations. I am committed to full cooperation with all relevant authorities to ensure that public funds remain secure and that these matters are investigated with the thoroughness they require."
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