Tees Valley Mayor Ben Houchen has joined calls for an investigation into Teesworks finances saying he wants to "nip allegations of wrongdoing in the bud" after Labour called for an inquiry.
Last night (May 15) Shadow Levelling Up Secretary Lisa Nandy published a letter sent to Gareth Davies, the Comptroller and Auditor General of the NAO, requesting he “launch an inquiry into the use of public money by South Tees Development Corporation the redevelopment of Teesside steelworks”.
Ms Nandy was reacting to recent criticism of the Teesworks redevelopment, which has garnered criticism for the controversial sale of public freeholds to the private sector.
Allegations of cronyism and corruption, which have been strenuously denied by Mayor Houchen and developers Chris Musgrave and Martin Corney, have gained national attention.
Read more: Ben Houchen responds to questions over Teesworks site
Ms Nandy wrote: “The Financial Times reports that the government has spent hundreds of millions of pounds of public money to support a project in which two private developers have ended up with a 90 per cent stake – without ever going through a public tender process.
“It also reports that those developers have already secured £45m in dividends despite failing to invest any of their own money in the project.
“I believe an investigation is now warranted to independently verify the allegations made in these reports and answer important questions about the transfer of a vital public asset into private ownership.”
But the Tees Valley Mayor has now joined the calls for an independent investigation of Teesworks, writing a letter to Levelling Up Secretary Michael Gove urging the National Audit Office to carry out a review to have allegations “nipped in the bud once and for all”.
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Mayor Houchen said: “Unfounded allegations have been made, which are having a significant and worrying impact on investor confidence, which directly impacts jobs and investment in an area relying on this flagship project to bring long-term sustainable development.
“A review of the evidence would go some way to restore confidence in the professionalism, integrity, and objectives of the Government, STDC, the TVCA and Teesworks."
Last month, Labour MP for Middlesbrough, Andy McDonald used parliamentary privilege to allege the site was subject to “industrial scale corruption”.
Today, Mr McDonald said he “wholeheartedly supported” his colleague’s calls for an independent investigation, telling The Northern Echo: “It is in the public interest that the Audit Office investigates the very real concerns that have been raised.”
Teesworks partner Chris Musgrave said: “We welcome the Mayor’s support for a full investigation into Teesworks. I have repeatedly said we have absolutely nothing to hide and look forward to their investigation clearing this up once and for all so that we can deliver what we promised.”
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Redcar’s MP and STDC board member Jacob Young also backed calls, hoping it will “bring clarity to this situation” for everyone in Teesside.
The cross-party calls could see the NAO launch a review that they have previously labelled outside of their remit.
The NAO did not respond to The Northern Echo's request for a comment.
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