Council under fire over £30m village deal

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Damning watchdog report expected

Friday, February 16, 2007

By David Gordon

A Co Antrim council is bracing itself for a damning watchdog report on its handling of a multi-million pound business deal.

Larne Borough Council is under investigation by the Northern Ireland Ombudsman over a development agreement for the village of Glenarm.

The probe is now believed to be nearing completion. It is examining the decision-making process that led to a company's proposals for council-owned land being accepted.

The firm, Grier Mulvenna, has tabled a £30m blueprint that includes the construction of a hotel and new housing. An inquiry was launched by the Ombudsman's office after a complaint from a rival bidder for the coastal land.

Preliminary findings are understood to have been drawn up by the watchdog, prior to a final report being issued.

Sources within the council accept that a highly critical verdict is expected.

The investigation is concerned with the council's handling of the Glenarm project, rather than Grier Mulvenna.

The development firm has nevertheless hit out at the probe, in advance of its conclusion.

In a statement to this newspaper, Grier Mulvenna said: "The real losers out of the involvement of the Ombudsman in this regeneration project are the people of Glenarm who, due to the delay caused by the investigation, are being denied their rightful entitlement to the much-needed jobs and community facilities which this development will deliver."

Grier Mulvenna said its development masterplan would have a "hugely beneficial impact" on the village "in terms of social and economic regeneration". It stated that, as well as hotel and housing development, the plans would include a touring caravan site, retail and office units and extensive community facilities.

These would include a new community centre plus facilities for local pigeon, canoe and rowing clubs, it said.

"Our proposal won the tender competition because it was the best proposal for the village," the statement added.

"The councillors who took the decision to award the contract have the best interests of Glenarm at heart and they selected the best development team for the job."

A spokesperson for Larne Council said it could not comment, as the Ombudsman's investigation was ongoing.

The council has faced opposition for its Glenarm plans from an early stage. Glenarm Village Committee argued two years ago that a developer-led masterplan approach was not the correct way forward.

It also boycotted a March 2005 council meeting on the project, claiming that its views were not being properly considered.

The Northern Ireland Ombudsman investigates allegations of maladministration against a number of public bodies including councils, health and education boards and government departments.