A Swedish municipality faces severe financial challenges after replacing public employees with expensive consultants. The Sigtuna municipality's community development office reported a deficit of 40 million kronor in recent financial reports. Projections show continued financial shortfalls, forcing cuts to ground maintenance, winter road care, and consultant services.
The municipality plans to lower temperatures in public buildings where possible. Officials acknowledge this measure could directly impact children using these facilities.
Financial records reveal concerning consultant billing practices. Two consultants billed for 24-hour workdays over multiple consecutive days. Another consultant charged 2.6 million kronor in one year, including 55 kronor per kilometer for personal car use during business trips. This consultant drove 356 kilometers on municipal expenses, including 53 kilometers during the Easter weekend. Municipal officials approved all these invoices.
Another consultant significantly exceeded agreed-upon fees while serving dual roles. She acted as both client and contractor in the Valsta Culture and Activity Center project. This arrangement allowed her to hire consultants from her own company, where she serves as CEO and part-owner.
Consultant brokerage firm ITC accounts for 39 percent of Sigtuna's total consultant costs. ITC employs no consultants directly but sources them for the municipality instead.
Professor Olle Lundin, an administrative law expert, calls this arrangement problematic. He suggests municipalities use such setups to circumvent Sweden's Public Procurement Act. This law requires transparency and competitive bidding for major public contracts to prevent corruption and ensure taxpayer money gets used efficiently.
Municipal director Daniel Lindqvist responds that Sweden's Competition Authority reviewed intermediary use in procurement. He claims the authority found no legal violations. Lindqvist acknowledges mistakes occurred but says the municipality will correct them. He describes the system as imperfect but promises improved controls.
Sweden's Public Procurement Act (LOU) governs how public sector entities purchase goods, services, and construction projects. The law aims to ensure efficient use of tax revenue through competitive bidding and transparency requirements. Consultant broker arrangements risk bypassing these legal protections.
This situation reflects broader trends in Swedish municipal spending. Consultant broker costs across Swedish municipalities increased from one billion kronor in 2013 to approximately seven billion kronor in recent years. The Sigtuna case demonstrates how consultant arrangements can strain municipal budgets while raising legal and ethical questions about public spending oversight.