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Community groups linked to Ken Livingstone's disgraced race adviser Lee Jasper have been handed a building rent-free by Boris Johnson's development agency.
Starlight Music Academy and Code 7, run by friends of Mr Jasper, have been told they can use Offley Works in Kennington without paying rent to its owner, the London Development Agency.
Today the move was criticised by other community groups doing similar work, who said they were struggling for funding and had never heard of Starlight.
The 6,000 square-metre building was at the centre of the City Hall grants-for-cronies scandal when Mr Jasper was accused of channelling millions of pounds of public money to friends' projects.
Mr Jasper was forced to resign after leaked emails revealed he offered to "honey glaze" Karen Chouhan, the married director of two of the projects.
Offley Works was also home to Brixton Base, now under investigation over allegations of fraud.
Starlight, a sub-tenant of Brixton Base, was brought into the building by Mr Jasper. Its website describes Mr Jasper as a "friend of Starlight".
At a meeting in Lambeth town hall this month, Mr Jasper lobbied for Starlight and Code 7, which uses music to work with teenagers, to keep the building.
The LDA confirmed it had dropped plans to redevelop Offley Works and offered the groups a new rent-free lease for a year, with the possibility of extension. Starlight said yesterday its aim was to obtain a 99-year lease on the building.
Starlight claims it has provided arts outreach training for young people at risk since 1997, and in Lambeth since 2006. However, there are no current courses shown on its website. Its listed telephone number is a mobile which was switched off, and it failed to respond to emails from the Evening Standard posing as a would-be student asking about outreach courses.
Other local community groups today expressed surprise over the deal. Oval House Theatre, just three streets away, helps about 3,000 young people every year and is struggling for funding.
Director Deborah Bestwick said: "I've never heard of Starlight and I would expect to since we do the same sort of work. I wish people would fund projects that are already proven to be effective."
Starlight says it has "transformed the lives of many young people, helped to build community cohesion and helped to reduce gun, gang and knife crime in the area and deliver vital after school and holiday services and access to facilities for young people".
Director Shanice Duffus said: "If nobody has heard of us it is because we are so busy doing the business we haven't got time to blow our own trumpets." She said Starlight did not offer accredited courses but gave students informal qualifications, "such as confidence".
She said courses were held most nights of the week and several students had gone into professional performance, modelling or teaching, but the group kept no formal records.
Starlight also claims that the academy's instructors include a former EastEnders actress and a Mobo-award winning singer.
Mr Jasper confirmed yesterday that he had lobbied in favour of the projects.
In a statement, the LDA said: "The redevelopment of Offley Work has been postponed due to the current property market. The LDA has decided to offer the current leaseholders a further year's lease."
Reader views (13)
Do they even have planning permission for a "community club" in this building?
- Or, London, 07/04/2009 16:26
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Another embarrassing episode for Boris.
Surely any connection to Lee Jasper should have sent alarm bells ringing.
Boris, please explain why one of your organisations can allow an organisation such as this rent free use of prime property. There are many registered charities that should have been considered before this group.
- Andrew, London W1, 30/03/2009 22:21
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It's not a registered charity - something easily checked on the Charity Commission website. Nobody has ever heard of it. It has never published any accounts. It doesn't respond to phone calls or emails. History repeating itself?
- Harry Lewis, London, 30/03/2009 14:04
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Starlight also claims that the academy's instructors include a former EastEnders actress and a Mobo-award winning singer.
Okey Dokey, Starlight must have a signing in register for health and safety purposes (fire, evacuation etc)and due to working with young people I assume said actress and singer have been CRB checked, lets see these names. If they exist. And while you're at it lets see which days you were open for 'business' and lets see how many 'students' attended on those days. I'm not being evil, I just want to see value for my hard earned tax pounds.
- Jimbob, Kensington, 30/03/2009 13:57
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Boris is being an excellent Mayor and Andrew Gilligan an excellent journalist who should be more interested in making sure Red Ken is never let anywhere near City Hall every again.
- Kimberley, London, 30/03/2009 13:43
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Re the Comment from Mark Lee- Starlight is not a registered charity according to the Charities Commission website. More crony-ism, corruption and rot left from the Jasper/livingstone days
- Ces, london, 30/03/2009 13:38
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In the current economic climate with 1000s of businesses failing and hundreds of 1000s being made redundant, a lot of the LDA's interventions simply cannot be justified, assuming they ever could be.
No one recently unemployed is getting the type of support that has been heaped on some beneficiaries by the LDA in millions of pounds, with little return to the taxpayer.
- Mike, london, 30/03/2009 13:34
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So let me get this right... a registered charity is being offered space in which to offer classes, free of charge?
How dare those communists at City Hall do such a thing... 
Not all organisations in the voluntary sector are web-enabled - setting up a website requires a computer and expertise - both of which some charities do not have.
- Mark Lee, Vauxhall, 30/03/2009 13:18
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You must have a slow internet connection,newspapers on strike and no TV & radio down in Swanley Joe. The latest news is that the "new" London Mayor, Boris Johnson, is a Conservative.
- Trevor, Southend UK, 30/03/2009 13:13
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"What would you expect from the political correct Labour party ? Honesty and common sense perhaps"
Umm, Joe - re-read the first paragraph again..
"Community groups linked to Ken Livingstone's disgraced race adviser Lee Jasper have been handed a building rent-free by Boris Johnson's development agency"
- Glyn, Hackney, 30/03/2009 12:06
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Of course they are getting free space, they are aiming at the continuing so deprived and incapable black community. I expect they are getting a lot more support from the general taxpayer too.
- Helen, norwich, 30/03/2009 11:45
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Is this an 'apology' for wrongly accusing Mr Jasper of fraud?
- Val Daniels, Mijas Costa, Spain, 30/03/2009 11:32
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What would you expect from the political correct Labour party ? Honesty and common sense perhaps ?
- Joe, Swanley Kent, 30/03/2009 11:04
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