King's Lynn Innovation Centre: Investigation into unpaid loan dropped

King's Lynn and West Norfolk Council loaned NWES £2.75m towards the King's Lynn Innovation Centre (Klic)

An independent investigation into a failed council loan beset by conflicts of interest has been dropped.

Documents show King's Lynn and West Norfolk Council will not proceed with the inquiry into the building of a local business centre.

The council loaned £2.75m to Norfolk and Waveney Enterprise Services (NWES) for the building, which was not repaid.

The investigator said if there was wrongdoing it would be a police matter. The council declined to comment.

The external investigator, solicitor Alison Lowton, said: "In the absence of any evidence or suggestion of fraud or any other criminal acts, this is not a sensible use of the council's resources.

"If there is any evidence of criminal activity - and none has been revealed or even suggested - then the right agency to deal with this is the police."

NWES was the construction partner for the Klic building in King's Lynn

A joint investigation by the BBC and Eastern Daily Press highlighted how NWES employed a company owned by one of its directors to oversee the King's Lynn Innovation centre project.

Internal council inquiries highlighted procedural irregularities and a lack of due diligence prior to the loan, which was defaulted on in 2018.

The building cost more than £6m to build but was subsequently valued at £2.3m.

The Conservative council leader at the time the loan was agreed, Nick Daubney, was also a former NWES employee who was subsequently appointed to its board.

Mr Daubney said he had removed himself from all meetings where the project was discussed.

Documentation from the steering group set up oversee the project was also found to be missing and legal agreements were found to have favoured NWES.

Ms Lowton stated she would only have access to information held by the council.

She said because of previous council inquiries, a new one would merely "mark the homework the council has already done".