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Project linked to Mayor aide sued by LDA
Andrew Gilligan and Ross Lydall14 Dec 2007
A project closely linked to Ken Livingstone's aide Lee Jasper is being sued by the Mayor's London Development Agency.
The LDA is taking legal action against Brixton Base - of which Mr Jasper is patron and self-styled "champion" - over £18,000 in unpaid rent.
The sum is being demanded back from the south London organisation despite it receiving a £287,000 grant towards "premises" from the LDA.
The revelation is the latest development in the growing furore over cash given to groups linked to Mr Jasper. Brixton Base is one of the groups which has benefited from LDA grants. Director Errol Walters is a friend of Mr Jasper and has shared office space with him in the past.
BBC London reported that LDA auditors - sent to carry out an emergency investigation of Brixton Base in October - had found that at least £193,000 was unaccounted for. The auditors went in because for several months they had received no answers from Brixton Base to their questions about where the money went. A promised business plan, which the LDA paid for, was not delivered.
As the Standard reported last week, Brixton Base appears to have done little despite receiving more than £535,000 in LDA funding over the last two years. A sum of £230,000 from the funding was to run three short training projects.
But the director of one of the projects, Shango B'Song, told the Evening Standard he had funded most of it out of his own pocket and saw only £8,000 of the LDA grant given to pay for it.
The revelations raise more questions over Mr Livingstone's credibility. As the Standard reported last week, 11 organisations run by friends or business associates of Mr Jasper have received at least £2.5 million in City Hall money - mostly from Mr Livingstone's LDA - with little, if anything, to show for it.
Responding to that report, the Mayor claimed last week that "every one of those projects, the LDA has a full audit trail of, and has complete chapter and verse on how money's been spent."
The facts of the legal action against Brixton Base - and the missing sums found in the audit - was not revealed by the Mayor when he was questioned about the grant last week. The revelations triggered demands today from London Assembly Tories for it to be recalled in emergency session. Lib-Dem Assembly leader Mike Tuffrey called the revelations "deeply shocking," saying that Mr Livingstone had been giving "a misleading impression".
Mr Tuffrey called today for the appointment of fully independent auditors, rather than LDA-employed auditors, to investigate the grants.
Richard Barnes, Tory group leader, said: "Things are crumbling very fast for Livingstone now. I will be asking the group today to call for an emergency meeting of the Assembly to call in the District Auditor."
The LDA and the Mayor's office have so far refused to answer the Standard's questions about Brixton Base.
Instead, the Mayor described the Standard's story as a "tissue of lies" and a "racist smear campaign". The LDA refused to comment on the new revelations last night. The BBC quoted a mayoral official as admitting: "There may be discrepancies, but it doesn't mean there's a problem."
Reader views (8)
The District Auditor must investigate this officially.
- Richard Tracey, Wandsworth, England, 15/12/2007 12:10
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There is nothing racist about exposing dubious acts! Even if the dubious acts of persons of a particular race is concentrated on, crying racism should not absolve one of culpability!
- John, London, 15/12/2007 11:51
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Red Ken maybe should go before the elections! He obviously has not done anything real for London and has created a lot of waste.
- Jacqueline, Hampstead, London, 15/12/2007 10:22
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Livingstone is trying to deflect attention away from the real issues.
There should be a proper investigation into this issue. Officers of the GLA cannot go against the Mayor to carry this out.
It requires a body to carry it out. Livingstone is trying to pre-empt this. This is neither transparency nor open government.
Livingstone cannot be the judge in this case. His victory last time was shallow - claiming he was not Mayor even though he was in City Hall, claiming he was a private citizen.
He used to write for the Evening Standard. He used to write for The Sun. Now he wants to silence investigative reporters.
Andrew Gilligan must be allowed to investigate this.
- Anthony, London UK, 15/12/2007 00:59
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What's so surprising about this is that the Mayor seems prepared to label completely justified concern about how LDA money (i.e. public money from ratepayers and taxpayers) is being used as a 'racist smear campaign'. All of his comments so far have been along the lines of 'everything in the garden is lovely and any concerns are racially motivated'.
So, do we take Mr Livingstone's assurances as gospel truth? Why should we? He's obviously not prepared to allow independent scrutiny - and why is that, then? If he's so confident that there are full audit trails, let's see them. Mr Livingstone should put up or shut up.
In any event, matters may be taken out of his hands if formal complaints are lodged with the various authorities.
- Chuck Unsworth, London, 14/12/2007 20:59
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How convenient of certain politicians to play the "race card" when it suits their purpose, just when forward thinking people are trying to ignore race. It's all rather transparent and "Ken" must not be allowed to get away with it.
- Robert Zimmerman, London, 14/12/2007 19:01
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Keep race out of the issue, this matter has to do with money only, and let those who recieved the funds account for them. Any allegation of wrong-doing must be vigourously investigated.
Livingstone is elected to run a major city in the world, and
it's about time he gets rid of his stooges.
- V Tan, London, UK, 14/12/2007 16:58
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Livingstone must not be allowed to prevent an investigation into this affair by labelling it a "racist smear campaign". This has nothing to do with race.
- Cameron, London, 14/12/2007 13:13
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