Gareth Davies, the current Local Government Head within Audit Commission would take over his new position as Managing Director of Audit to lead the transformation of the watchdog into an employee owned organisation.
The Communities Secretary Eric Pickles, last month announced that the quango would be abolished in 2012/13, and urged the Commission to reinvent itself as an independent body that would be able to compete in the new open audit market of local government organisations.
Mr. Davies is entrusted with developing a business case to ensure the Commission is able to survive and function effectively as an employee owned organisation. The objective was to "‘to get as big a share of the market as we can and diversify into other parts of the market’, argued Davies as he suggested moving to areas such as housing associations and the voluntary sector among others.
The new MD for Audit was confident that customers in the public sector would choose the Commission as their auditor when given the choice and that the Commission would fare well in the new competitive audit market. The restructuring plan would require approval from the Audit Commission Board as well as the Government.
Earlier today, the local government minister Bob Neill announced that the government's plans to appoint private sector representatives on board of the Audit Commission during this interim stage.
The terms of three Audit Commission Board members have expired in August this year, and the minister said that an advert would be published soon on the public appointments website. Ministers hope that private sector experts apply to be part of the board as their expertise could be vital in helping the public sector quango transform into a competitive business entity.
The Local Government Minister also announced the reappointments of deputy chair Bharat Shah and Lord Adebowale, chief executive of the social care charity Turning Point who would serve until the end of 2012.
‘This department will be working closely with the Audit Commission, the accountancy profession and the local government and health sectors to develop the detailed design of the new systems," Bob Neil said.
‘I would like to thank all departing commissioners for their contributions to the Audit Commission’s work.’