John Biggs (pictured), the Labour Party constituency member for City and East on the London Assembly, has picked up on my story earlier this month on the KPMG audit of the Olympic Legacy Directorate and used it to get an interesting response from Boris on the whole process.
In Mayoral Questions on the 17th of this month, Biggs wondered if it is right for KPMG to be looking in to a matter that the courts are already considering. He also questions the political motivation.
Biggs says: "You are doubtless being lobbied, as was your predecessor, and as have been many others (including myself), by business owners and former owners relocated to make way for the Olympics. It is reported in Estates Gazette that you have commissioned KPMG to audit the Olympic Legacy Directorate of the LDA to explore this further. While this may be perfectly in order do you not accept that, in such matters, processes of independent valuation, arbitration, compensation claims, and so on, often overseen by the courts, and often proceeding quite frustratingly slowly, are the proper means by which sums are agreed and that politicians should tread most carefully before involving themselves in such matters? What is the motivation behind and purpose of the audit and will you share its conclusions publicly?"
Boris answers by saying that the review is ongoing but confirms that the LDA has reforecast its budget to accommodate "additional spending commitments".
He goes on to add that following a tender process that began in March, KPMG was appointed by the LDA to "support this process and provide due diligence work in preparation for the handover to the legacy company".
KPMG's advice to the LDA will be "subject to the usual terms and conditions of confidentially". So, no public sharing of the conclusions then.
Johnson adds: "As you have said, the process of independent valuation of land and compensation arrangements is a complicated one which is why KPMG are also helping the LDA to review its current position, and provide vendor due diligence in preparation for the handover to the legacy company."
Given the stories now appearing about a £100m shortfall in the budget being discovered by KPMG I think we may see Boris make rather more of this audit and what it suggests about accounting and spending under the previous administration.
Leave a comment
What a user pic? Get a Gravatar!