Probe call on charity sports plan
Jan 7 2009 by Neil Mckay, The Journal
APROBE into the relationship between council bosses and a charity set up to regenerate a former steel town has been recommended “as a matter of urgency”.
Unless the investigation takes place, work on a long-awaited £15m sports complex for Consett, County Durham, could be halted.
Durham County Council commissioned a firm of specialist financial consultants to run the rule over a proposed “wet and dry” sports complex for the town five months ago.
County treasurer Stuart Crowe told county council cabinet members that Derwentside District Council’s plan for the complex in Consett ultimately depends on approval by the new unitary council when it comes into being in April.
In his report last August, Mr Crowe said that although the district council – which will become defunct in April – is putting up the cash to build the new sports complex on part of the old steelworks site, the new unitary council would be responsible for putting the plan into operation and meeting all the financial risks during construction as well as its annual running costs. And at a cabinet meeting scheduled to take place on Thursday Mr Crowe will update members on the recommendations from the independent consultants.
The recommendations include an investigation into the relationship between Derwentside District Council and a charity called The Genesis Trust.
The Genesis Trust was formed to provide facilities for Consett when it was reeling from the closure of the steelworks in the town 28 years ago.
Trustees of the Genesis Trust include Derwentside council leader Alex Watson, deputy leader Michael Malone and chief executive Mike Clark. Mr Crowe will report: “The consultants have identified a number of issues which they suggest need to be addressed, particularly around the relationship between Derwentside and the Genesis Trust.
“The trust would appear to have considerable powers over the future of Genesis property. In addition, it appears that the ultimate developer is already specified. It is suggested that it is important to review the level of gains made by the trust, and the use to which those gains have been put.”
The consultants add that a closer look should also be taken at a company called Project Genesis Limited (PGL) adding: “PGL is a company partially owned by the trust and the developer. It is suggested that a detailed review of the activities and trading record and dividend distribution of both companies is undertaken.”
Mr Crowe will tell members: “The consultants have produced a helpful report. It is clear that there are a number of positives which should give assurances to the new county council about the project. However, other questions have been raised, particularly around the relationship between Project Genesis Ltd, a trust and the current district. These relationships are soon to be with the county council. It is recommended that I be authorised to commission a final piece of work from the consultants as a matter of urgency.”
But Derwentside District Council leader Alex Watson said: “Project Genesis is a public/private partnership agreement second to none in the country. It is a registered charity and any surplus is ploughed back into Consett. I very much hope the cabinet will avoid any further delays in starting work on this sports village because delays will only cost money.”
