TWO former Edinburgh City Council employees have pleaded guilty to receiving tens of thousands of pounds worth of bribes from building company workers.
Charles Owenson, 62, and James Costello, 44, received kickbacks from an Edinburgh-based firm's staff members Kevin Balmer, 52, and Brendan Cantwell, 44.
In return for receiving the cash, the two local authority workers helped influence the awarding of construction contracts to the company.
The story emerged after the council workers pleaded guilty on Tuesday at Edinburgh Sheriff Court to breaching the 1889 Public Bodies Corrupt Practices Act.
The proceedings relate to work contacts for public buildings such as schools and libraries.
The four men also admitted committing fraud and breaching proceeds of crime charges at a hearing on Tuesday afternoon before Sheriff Michael O'Grady QC.
During the hearing, depute procurator fiscal Keith O'Mahoney told the court that the scam was so complicated,he would need another day in court to explain how it worked.
However, the contents of a legal document given to the press detailed the nature of the charges against Owenson and Costello, both of Edinburgh, and Balmer and Cantwell, both of Livingston, West Lothian,.
The first charge details how between January 6 2006 and November 10 2010, Balmer and Cantwell corruptly gave £42,521 cash to Owenson and Costello at various locations in the Scottish capital.
The two Edinburgh-based firm ABC Ltd employees also gave Owenson and Costello £30,249.21 in hospitality as an inducement to secure contracts for the repair and maintenance of Edinburgh City Council buildings.
The second charge states that Owenson acted corruptly whilst working as an officer at the local authority's Property Care Services Ltd.
It states that he received £28,387 at various locations in Edinburgh between 2006 and 2010 as a reward for the council awarding contracts to ABC Ltd.
The third charge states that Costello acted corruptly whilst acting as an officer in the same department and received £14,134 as a reward for the council awarding contracts to ABC Ltd.
Between April 18 2007 and May 2010, at various locations in Edinburgh, Balmer fraudulently caused Edinburgh City Council to pay ABC Ltd £67,923 for work the company carried out on behalf of the local authority.
Balmer pocketed £22,641 from the fraudulent scheme.
Between May 19 2007 and December 29 2011, at various locations in Scotland, Owenson breached Proceeds of Crime legislation by laundering £28,387 by purchasing motor cars.
Costello carried out the same scam between June 2007 and April 2012 at various locations in Scotland.
Sheriff O'Grady adjourned the case until Friday when Mr O'Mahoney will tell the court the circumstances surrounding the four men's behaviour.
The guilty plea follows an investigation by Police Scotland into the allocation of building work contracts at the City of Edinburgh Council.
Detective Inspector Arron Clinkscales said: "This enquiry has attracted significant media coverage due to the misuse of public funds.
"Where reports of fraud or corruption in public office are made, Police Scotland will investigate such allegations thoroughly and robustly.
"The outcome at court today endorses the hard work of Police Scotland and the partner agencies involved in a long and complex enquiry."
Sue Bruce, council chief executive, said: "We expect the highest standards from our staff and where allegations are made concerning mismanagement or fraud we will investigate and take the strongest possible action.
"We have reviewed and made substantial changes to our management arrangements for this service. It is important that the public have the utmost faith in the services we provide.
"The overwhelming majority of our staff are committed to making a positive difference to the lives of people in Edinburgh."
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