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Welsh government 'cannot prove' £21m land sale got best value | Welsh government 'cannot prove' £21m land sale got best value |
(about 5 hours later) | |
The Welsh government has admitted it cannot prove the biggest sale of publicly-owned land in recent years in Wales achieved best value for money. | The Welsh government has admitted it cannot prove the biggest sale of publicly-owned land in recent years in Wales achieved best value for money. |
A senior civil servant made the admission in a letter to the assembly's Public Accounts Committee as part of an inquiry into the Regeneration Investment Fund for Wales (RIFW). | |
In 2012, 15 sites were sold as one portfolio for £21m. | In 2012, 15 sites were sold as one portfolio for £21m. |
But the Wales Audit Office said they should have made at least £15m more. | But the Wales Audit Office said they should have made at least £15m more. |
Weaknesses | |
The sites varied from former industrial land to more than 100 acres (40 hectares) of valuable farmland earmarked for housing on the edge of Cardiff. | |
They were sold in March 2012 to a Guernsey-based company called South Wales Land Developments, owned by Sir Stanley Thomas. | |
The proceeds were designed to be invested in regeneration schemes. | |
Auditors said there were flaws in the sale process, potential conflicts of interest, and weaknesses in the professional advice given to the board. | |
Until this point, the Welsh government has defended its actions on the grounds of conflicting valuations and tough economic conditions. | |
In a letter to the public accounts committee, deputy permanent secretary Owen Evans said: "With the benefit of hindsight we are clear as to the significance of the decision to dispose of RIFW's land assets without a public sale. | |
"This means that we are unable to demonstrate conclusively that the sale has achieved best value." | |
However, he said the Welsh government still believed the RIFW board acted reasonably given the technical advice it received at the time amid economic uncertainty. | |
"It is important to note that neither do we believe that the valuation evidence available in this case points conclusively to there having been a sale at under value," the letter added. |