18.07.18
Major London council lambasted by independent QC report over failed £40m investment into London Stadium
A scathing new inquiry into Newham Borough Council’s investment of £40m to London Stadium has said the move was flawed because it did not ensure financial conditions for the investment would be met.
The authority made the multimillion-pound bid to turn the Olympic stadium built for the 2012 games into West Ham United’s new home ground, on the premise that Newham would receive a £3m-a-year profit return for the council.
The deal was made by former mayor Sir Robin Wales in 2013, yet the returns on the deal never materialised, and the borough’s new mayor Rokhsana Fiaz said the was throwing public money “down the drain.”
Peter Oldham QC, who led the inquiry, questioned the use of urgency procedures which meant that councillors and officers often did not have enough time to thoroughly read and understand the highly complex reports.
The report also determined there was a “potential lack of accountability” created as decisions were made behind closed doors and delegated to senior officers, with input limited to a small group of elected members and the mayor.
The funds for the project were borrowed from the Treasury and written off by the local authority in December.
Mayor Fiaz said: “As a council, we should not be opposed to exploring opportunities that regeneration can present, but robust scrutiny and increased clarity are essential to prevent such detrimental mistakes being made again.
“Led by myself and the Cabinet, the council will continue to work closely with all partners involved in the stadium including the mayor of London and London Legacy Development Corporation so that all potential benefits from the stadium in future are maximised for our residents, including free access to world class events and proper community involvement.”
A broader review will be carried out into the culture and practices of Newham Council. Proposals will be brought to the next Full Council meeting in September including details of the process and individuals who will undertake this work.
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