On Monday CambsNews carried a lengthy report into Mayor Dr Nik Johnson’s talks with Cambridgeshire Chief Constable Nick Dean to press for a police investigation into historic irregularities in the Cambridgeshire and Peterborough Combined Authority’s allocation of multi million pounds loans for housing.
Here’s a summary of that article provided, for the first time, by ChatGPT – you can of course click the link to read the full exposition
Background & Key Figures
- Mayor Dr. Nik Johnson met Cambridgeshire Chief Constable Nick Dean three times, most recently last month, urging a police investigation into financial irregularities.
- His frustration has been growing since July 2021, when he first raised concerns, only to be met with resistance and delays from within the Cambridgeshire and Peterborough Combined Authority (CPCA).
Mayor Dr Nik Johnson asks Chief Constable to probe loans scandal
Findings of the RSM Audit
An independent audit by RSM found:
- Significant governance failures, missing records, and poor financial oversight.
- No proper audit trail: Emails, documents, and decision notices are missing.
- Inexplicable changes to loan agreements, leading to financial losses.
- Conflicts of interest: A former deputy mayor was closely involved in deals benefiting a Community Land Trust (CLT) and developers.
Mayor Johnson’s Long-Standing Concerns
- Since taking office in May 2021, Johnson had repeatedly questioned the handling of CPCA’s housing loans.
- Internal concerns surfaced as early as July 2021, but key officials dismissed them, allowing the problems to persist.
- By March/April 2022, whistleblowers came forward, but their warnings were ignored.
- Johnson was particularly frustrated by the CPCA leadership’s reluctance to engage with government warnings, failing to acknowledge the scale of mismanagement.
- Despite multiple warnings, the CPCA failed to act decisively, leading him to push for police intervention.
Key Problematic Loans & Financial Mismanagement
- Loans to Laragh Homes
- Given on favourable terms without financial transparency.
- A £9.6m loan for a Histon Road project lacked profit-sharing, despite previous CPCA board assurances.
- £23.5m loan to East Cambridgeshire District Council
- For MoD housing redevelopment in Ely, but profit-sharing was never enforced.
- Alexander House (Ely) & Great Abington Projects
- Profit-sharing agreements were abruptly withdrawn, causing estimated losses of £490,000 to £600,000.
- Wilburton Housing Scheme
- A £340,000 CPCA grant ended up benefiting Laragh Homes with no formal approval.
- After four years of opposition, the project was rejected in 2023.
Conflicts of Interest & Cover-Up
- Former Deputy Mayor Charles Roberts, a close associate of former Mayor James Palmer, was involved in a CLT partnership with Laragh Homes.
- Emily Mulvaney, a CPCA employee, personally secured a £342,630 grant that ultimately benefited Laragh.
- No CPCA oversight or formal approval for her actions.
- Internal reporting was dysfunctional, with CPCA staff working in “silos” that prevented transparency.
Mayor Johnson’s Frustration Reaches Boiling Point
- Johnson has been battling resistance for nearly three years, pushing for accountability while facing internal pushback.
- Government letters highlighting concerns were ignored by CPCA leadership, further fuelling his frustration.
- His recent meetings with Chief Constable Nick Dean reflect a final attempt to ensure accountability, after years of being obstructed.
Consequences & Next Steps
- The RSM audit findings will be reviewed by CPCA on March 12.
- Freedom of Information requests to Homes England are still pending.
- Further scrutiny is expected over loans to East Cambridgeshire District Council’s trading arm.
Summary
The RSM audit has confirmed serious financial mismanagement under former Mayor James Palmer, with money lost due to a lack of oversight.
- Favourable loans were given to Laragh Homes without proper checks.
- Profit-sharing agreements were scrapped, leading to significant financial losses.
- Mayor Johnson’s repeated warnings were ignored, forcing him to escalate the issue to the police.
