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Published on: 22/03/2018 04:01 PMReported by: roving-eye
Ernst & Young, who are Sefton Council’s external auditors, have identified the controversial £32 million purchase of the Bootle Strand Shopping Centre as a “significant risk” in their Audit Planning Report released this week.
In a report to the Council’s Audit & Governance Committee held on Wednesday, the audit firm refers to “the purchase of a Luxembourg-registered company” during the last year as well as “the complex nature of this exercise”. Accordingly they identified the transaction as one of just two areas classified as being at the highest ranking of “significant risk” in their audit strategy.
Last year Labour-controlled Sefton Council came in for nationwide criticism for its decision to acquire the Bootle property via the purchase of the shares in a Luxembourg-based company, rather than of the property direct. It is understood that this avoided ÂŁ1.6 million in stamp duty.
Birkdale councillor Simon Shaw, Lib Dem spokesperson on the Audit & Governance Committee has welcomed the fact that Sefton Council’s auditors will be examining the reporting of this transaction in detail.
“Over recent months Lib Dem councillors have highlighted a number of concerns about this whole affair ranging from the massive fees paid to outside advisors as well as Labour’s persistent secrecy over the matter.”
“So I’m delighted that the Council’s external auditors have identified this as a priority area as part of their annual audit for 2017/18.”
Accounting for in year acquisition
Significant risk
New risk
The Council acquired a strategic asset in year. The transaction involved the purchase of a Luxembourg-registered company (LuxCo), which in bringing the asset on to the balance sheet, as at 31 March 2018, the Council took action to wind up the operations of the LuxCo. Due to the complex nature of this exercise we will consider the financial reporting of this transaction as part of our financial statements audit.
Labour councillors playing at being “ business men” with our money, let’s hope it doesn’t comeback and bite them in the backside. A lot of things could have been done with £32 millions, Police, health care , schools and potholes in the roads would have benefited from that sum of money yet the council harps on about cuts and having no money.
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justbecause says:22/03/2018 09:47 PM
Originally Posted by cotton man
Labour councillors playing at being “ business men” with our money, let’s hope it doesn’t comeback and bite them in the backside. A lot of things could have been done with £32 millions, Police, health care , schools and potholes in the roads would have benefited from that sum of money yet the council harps on about cuts and having no money.
It won’t be “them” it comes back to bite on the backside......it will be the Council Tax payers of Sefton. If the proverbial does hit the fan, I’m sure we’ll all hear the Politicians chorus......not me guv.
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dav says:22/03/2018 10:51 PM
Moronic idea for a council to buy a clapped out shopping centre when retail stores are closing at an unprecedented rate, up and down the country, because much of the market has moved online or to massive out of town developments. Silly Labour councillors playing at shop.
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Username2016 says:23/03/2018 08:16 AM
Originally Posted by roving-eye
“Over recent months Lib Dem councillors have highlighted a number of concerns about this whole affair ranging from the massive fees paid to outside advisors as well as Labour’s persistent secrecy over the matter.”
.
I think “super audit man” is underselling this, surely it’s more accurate to say “for the last few months the Lib Dem’s have taken it in turns to jump on the bandwagon with all ends of tenuous links given the perfect opportunity to “slam Bootle labour” and mask how little they achieve but disruption...meanwhile Cllrs Shaw and Dawson try to weave the Strand into any tenuous link on the other Southport news site.
Quite remarkably for an accountant Cllr Shaw seems to want stamp duty to be paid when it’s not due by virtue of the setup in buying the Strand.
Hopefully it works out and does sound risky but the Lib Dem’s have taken all credibility out of their arguments by virtue of using this as a political football and making all their points in a petty manner.....the Lib Dem’s probably are sore too from losing the money they’ve been siphoning into local Lib Dem funds through renting their building to a Lib Dem MP rather than playing a part in lowering the cost of politics through claiming what’s needed.
There is also a level of eye rolling in one of the the bleetings has been about paying external consultants and the audit is going to check that there was the right level of expert consultation...it hardly was going to come in house or free especially if the local friendly accountant wants them to pay stamp duty that apparently was not due.
Hopefully one day our electives can work together to benefit the electorate.
Last edited by Username2016; 23/03/2018 at 10:44 AM.
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local says:24/03/2018 09:06 AM
The dums have a point on this buying the Strand shopping centre is akin to coming out of Chapelhouse with a smile on your face because you have just given top dollar for a tired ex private hire diesel.
Leaving people who would struggle to get a job in the real world access to our money does seem somewhat careless.
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