We call on Eric Pickles, to investigate allegations of governance failure, poor financial management and potential fraud at the London Borough of Southwark, relating to the sale of the Heygate Estate.
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The redevelopment of the former Heygate Estate in South London has displaced residents and led to financial losses for the taxpayer.
Here are the figures involved in the sale, which illustrate the scale of mismanagement by Southwark council:
Price paid by Lend Lease for 22-acre Heygate Estate site: £55m
Price paid for nearby Oakmayne/Tribeca Square 1.5-acre site: £40m
Expected total cost to Southwark Council for evicting residents: £65.5m
Previous estimate of cost to refurbish Heygate Estate to modern standard: £35m
Expected profit from sales for Lend Lease: £194m
Expected profit from sales for Southwark Council: £0
Average compensation given to leaseholders of one bedroom flat: £95,480
Average compensation given to leaseholders of four bedroom flats: £177,421
Lowest price unit in new development (one bedroom flat): £310,000
Number of social-rented units in Heygate Estate: 1,200
Number of social-rented units in new development: 79
[Source: New Statesman]
Several former council workers involved in the negotiations with the private developer (Lend Lease) are now working for that developer. Details of this 'revolving door' are outlined here
We call on The Secretary of State for Communities and Local Government, Eric Pickles, to appoint inspectors to look into allegations of governance failure, poor financial management and potential fraud at the London Borough of Southwark, in relation to the redevelopment of the Heygate Estate.
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