The National Audit Office (NAO) refused to sign off the EHRC's annual accounts because the organisation re-engaged the seven former senior employees of the Commission for Racial Equality who had left that body under a voluntary early severance scheme, without seeking the permission of the Treasury.
The EHRC took over the responsibilities of the former Commission for Racial Equality, Equal Opportunities Commission and Disability Right Commission in 2007 and the NAO report released yesterday also criticises the EHRC, which was set up more than a year earlier to ensure a smooth transition. It reads: "The EHRC faced difficulties from the beginning as it did not have enough staff to plan and manage the start-up effectively."
Amyas Morse, the head of the National Audit Office, said: "The Equality and Human Rights Commission was established 18 months before it became operational, to enable a smooth transition from the three predecessor organisations. But delays in bringing in resources sufficiently quickly meant that, when it started doing its job, it lacked more than half of its complement of directors, and made the mistake of re-employing some senior staff from predecessor bodies without authority.
"The shortage of senior staff weakened EHRC's ability to develop a clear business strategy, agree an organisational design and ensure effective operational management was in place. These problems could have been avoided if the transition from the previous equality commissions had been better planned."
But he added: "The EHRC has since made welcome progress in improving its controls and governance."
Equalities and Human Rights Commission criticised for rehiring redundant senior staff as consultants
The Equalities and Human Rights Commission (EHRC) has faced criticism for rehiring seven senior staff on consultancy contracts just months after they took voluntary redundancy packages.
