Auditors have completed a review of accounts covering Tees Valley Mayor Ben Houchen's landmark project - just a few weeks after a huge row broke out.
Mazars has today (22 September) signed off South Tees Development Group accounts which incorporates the huge Teesworks site at the former steelworks, and said it identified 'no weaknesses or risk of weaknesses' in Teesworks’ value for money arrangements – how it plans and manages its resources, makes informed decisions and manages risks and how it improves service management and delivery.
Read more: Row over Teesworks 'clean bill of health' claims after NAO review funding
When the NAO report came in last month, Tees Valley Combined Authority described it as 'clean bill of health' but Stockton North MP Alex Cunningham disputed this description, accusing the mayor of 'selling the people of Teesside down the river' over the deal and asked to meet the watchdog to discuss 'very serious concerns'.
Now the Mazars report highlights South Tees Development Group's 'open dialogue with Government to ensure funding is maximised' and said it has a “good track record of identifying funding streams and obtaining additional funding”. It also noted its actual financial performance is “evidence of the effectiveness of financial management arrangements despite pressures created by the pandemic”.
Tees Valley Mayor Ben Houchen said: “This is a clear statement that we are doing all the right things to ensure that Teesworks is operating effectively.
“Our aim is to redevelop the site as quickly as possible so that local people can access good-quality, well-paid jobs. This audit will provide even more confidence to businesses, and I am confident we will be announcing more large-scale international investment very soon.
“The NAO has looked into the Government’s involvement in Teesworks and now our local auditors have concluded that everything is in order. While I realise not everyone is going to agree with every decision we make, they can rest assured that these decisions have been made properly and transparently.
The mayor told The Northern Echo: “Work to transform the Teesworks site and create thousands of good-quality, well-paid jobs for generations to come is continuing at breakneck speed.
“We’re building a new future, but we can’t lose sight of how far we’ve come.
“Since day one, everything that has happened in respect of the management, finances and governance of the Teesworks site has all been done above board, in line with best practice and public sector procurement processes. Auditors have recently crawled all over our financial statements and have found ‘no weaknesses or risk of weaknesses in our value for money arrangements’.
"In addition, all of the resources the Government has ploughed into the site, and how these have been used, were recently scrutinised by the National Audit Office which, again, was comfortable with how public money had been spent.
“In fact, I struggle to think of another large-scale project that has had this many eyes on it and been subject to as much scrutiny as Teesworks. From national government oversight to our Local Authorities, Combined Authority Cabinet members, local business leaders, internal and external auditors, the National Audit Office and, of course, journalists – we’ve rightly been under the microscope from day one.
“Not everyone is going to agree with every decision we make, I understand that, but that doesn’t evidence wrongdoing.”
Read next:
National Audit Office reviews government funding of Teesworks
Ben Houchen 'confident' with Middlesbrough development programme
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