'No evidence of corruption' at Teesworks - inquiry

A report into claims of cronyism and corruption surrounding finances at the Teesworks site has found no evidence of wrongdoing, but has criticised a lack of transparency.

The independent review found no evidence of corruption, wrongdoing or illegality, but made 28 recommendations.

It found a culture of excessive confidentiality and a lack of transparency.

The report was ordered in May 2023 and its findings were expected by the end of last summer.

The independent review, commissioned by Levelling Up Secretary Michael Gove, clears the agency behind the redevelopment of the area, the South Tees Development Corporation, its head, the Tees Valley Mayor Ben Houchen, and private sector property developers, of corruption claims.

The report was triggered by press reporting and Middlesbrough Labour MP Andy McDonald claiming in Parliament that the regeneration scheme harboured "corruption on an industrial scale".

Three local authority officers from outside of the north-east of England were appointed by government to investigate the claims.

After scrutinising 1,400 documents and interviewing 45 people, the panel says it has found no evidence of corruption, wrongdoing or illegality.

However, there is criticism of the South Tees Development Corporation in the report.

In one case the panel looked at how private property developers have ended up owning 90% of the site.

The report says they put no money into the scheme, but they have made money on the back of public sector investment of more than £560m.

The deal, it is said, should have been scrutinised more by the Tees Valley Combined Authority - all five of the Tees Valley local councils.

More broadly, the review found a culture of excessive confidentiality and a lack of transparency at the development corporation.

The final conclusion states that “inappropriate decisions and a lack of transparency which fail to guard against allegations of wrongdoing are occurring, and the principles of spending public money are not being observed”.

The review panel makes 28 recommendations, many of which propose more openness and more oversight by the Tees Valley Combined Authority.

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