Tower Hamlets council

‘Tower Hamlets council and The Rich Mix Cultural Foundation are pleased to announce that they have resolved the disputes between them and have brought an end to the legal proceedings currently in the High Court.

‘The resolution of these disputes secures Rich Mix’s future and will benefit all of its stakeholders, users and the residents of Tower Hamlets. As part of the resolution, Rich Mix has received s106 monies agreed by the council’s strategic development committee in August 2010 and has in turn, agreed to repay the £850,000 loan given by the council to Rich Mix in 2003 and make a payment in respect of certain external costs.

‘This decision was also considered as part of the more general Clear Up work when the allegation of improper decision making was rejected.’

Rich Mix

On the £850,000: ‘The £850,000 was given with the intention of making it into a loan but it was never made into a loan. Rich Mix maintains it was a grant. As with any settlement, both parties maintain their position but you agree to compromise.’

On the £1.5m: ‘The planning committee had made over the s106 monies to Rich Mix and guaranteed that to be the case. 

‘The judge said he was fairly appalled by the fact that the council had been so incompetent in drawing up the contact that it could not be forced to do what the council had promised to do. It is daft to assume that a small charitable organisation can spend tens of thousands of pounds on checking a contract.’

— Chair of the board, Michael Keith

The Ministry of Housing, Communities and Local Government 

‘This payment is a matter for the council and you should speak to them about it. We appointed an independent commissioner to look into the council. However, this payment did not fall within their remit and it is the responsibility of the council.’

Sir Ken Knight

‘This was not a grant falling to the commissioners to make a decision about as it was the settlement of a legal case. As a result, I have nothing to add to the council’s position.’

 

 

Picture: UK Parliament