European Union opens investigation over Westminster City Council parking contract

The European Commission has launched an investigation into the award of a multi-million pound contract by a joint parking services venture led by Westminster City Council after receiving a complaint that the tendering process contract broke European procurement rules.

The joint venture, Partnerships in Parking (PiP), was established in 2007 by Westminster in conjunction with Transport for London and five other London boroughs (Lambeth, Kensington & Chelsea, City of London, Camden and Islington) to jointly procure and manage parking services from the private sector. The contract to provide pay-by-phone parking services was won by Verrus UK, which has since been acquired by UK parking services provider, Paypoint.

However, when further London boroughs joined PiP and began to use Verrus' services, a complaint was made that the contract should have been re-tendered. The initial complaint was made to the Office for Government Commerce (OGC), which decided not to investigate, before the European Commission launched its own enquiry and issued a formal notice asking the UK Government to explain why it had not investigated the complaint on 20th November, 2009. The complainant decided to remain anonymous.

In response, the OGC asked the legal team at Westminster City Council to provide information that would enable it to draft a reply to the Commission, which was received on 22nd January. The Commission is presently considering whether to take the case further.

In a statement to Local Government Lawyer, Westminster's cabinet member for city management, Cllr Danny Chalkley, said: "We are aware of this enquiry and are responding to the commission's request for information.

"The contract was properly awarded after a tender process carried out in accordance with the law and the council's procurement processes. We will continue to work with Verrus to provide effective parking services across central London."