Not to mention the cost of the PwC inquiry into the sale of the Underhill freehold - almost £1 million.
From the Barnet Times:No wilful misconduct in Underhill sell-off8:12am Thursday 9th October 2008
By Tomasz Johnson
After seven years, four inquiries and £1 million, Barnet councillors and officers have been cleared of any wrongdoing in the controversial sale of Underhill stadium.
The findings of the fourth inquiry were released yesterday after a four-year investigation into alleged misconduct which cost taxpayers £996,555.
The 96-page report by Price Waterhouse Cooper (PwC) clears six Barnet councillors and officers of “wilful misconduct” during the sale of the land housing the football stadium in 2001.
The inquiry followed objections from three residents, accusing those involved in the deal of a catalogue of breaches of the Audit Commission Act.
Under fire were the then Mayor of Barnet, Councillor Anita Campbell, deputy mayor Councillor Danish Chopra and council leader Alan Williams, as well as the chief executive, borough solicitor and chief valuer.
The most serious allegation was that the land had been sold to Barnet Football Club Holdings Ltd for a fraction of its true value.
If accountants had found evidence of deliberate wilful misconduct, the accused could have faced criminal charges and been forced to pay the council millions of pounds in lost revenues.
Five of the accused were absolved of any wrongdoing, while David Stephens, the council’s chief valuer at the time, was criticised for “misconduct” because of his failure to liaise effectively with officers and councillors over the sale.
A council spokeswoman said: “A number of recommendations have been made by the auditor that will be debated in public at the council meeting on November 4.”
She said the council had, as a result of previous investigations, already adopted recommendations in the report, such as improved transparency and better monitoring of members’ and officers’ performance.
The latest inquiry began after three residents sent letters of complaint to PwC between 2003 and 2005, and, as the council’s accountants for that tax year, the firm was obliged to investigate.
Two of the residents, Mr David Miller and Mr Andrew Markey, claimed the £10,000 price tag on the land was only a fraction of the £5 million they believed it would be worth with development rights.
They raised concerns the council had not advertised the sale and the deal was made by council officers, not councillors in public.
Several valuations since valued the land at between £10,000 and £100,000.
Although it would be worth more if developed, Barnet FC held an 86-year lease at the time and it is Green Belt land.
The council also put a clause in the deal to retain 60 per cent of the windfall if Barnet FC moved out of the borough.
However, a typing error effectively nullified the clause, handing the football club all the profits if it moved after ten years, potentially costing the council millions in lost revenues.
Three investigations between 2002 and 2004 identified “procedural issues” but found no evidence of malpractice before the three residents’ letters triggered the latest investigation.
Mr Miller, 46, of Darlands Drive, Chipping Barnet, said the cost to taxpayers was worth it “if heads roll” as a result of the investigation.
He added: “If steps are taken to improve democracy, improve scrutiny and improve accountability, then the cost will be justified.
“If the council sweeps this under the carpet and carries on as normal, then it will have been a complete waste of time and effort.”
Commenting on whether he would now drop the issue, Mr Miller said: “I have a legal right to go through appeal, but I’m not sure yet.
“I’ll have to carefully read what the auditor said and why he said it.”
Full copies of the report are available at
http://tinyurl.com/4zpyot.
