Welsh Government sues land sale advice firms
- Published
The 15 sites sold in one deal included farmland and former industrial locations
Ministers have begun legal action against two firms that gave advice on a land sale criticised for not generating enough cash for the taxpayer.
A total of 15 publicly-owned sites were sold in one deal for £21m in 2012 by the Regeneration Investment Fund for Wales to South Wales Land Developments.
Lambert Smith Hampton and Amber Fund Management are being sued for breach of contract and professional negligence.
Amber said it will defend against any proceedings brought against it.
Carwyn Jones apologised to AMs in 2016 for the sale, which auditors said should have generated at least £15m more for the taxpayer than it did if the sites were sold in a different way.
The Regeneration Investment Fund for Wales (RIFW) is wholly-owned by the Welsh Government.
The locations included land at Imperial Park, Newport; Llantrisant Business Park and Upper House farm, Rhoose.
One of the sites was located near Lisvane in Cardiff
Leader of the Welsh Conservatives, Andrew RT Davies, said: "Selling off large pieces of valuable land in private deals was never going to deliver value for money for the public purse, and it is vital that this Labour Government learns the lessons.
"Carwyn Jones promised to be held to account for this debacle, and it is some relief that ministers are now seeking to recoup some of the millions of pounds thrown away during the RIFW debacle."
The minister for housing and regeneration, Rebecca Evans said RIFW had issued legal proceedings in the Business and Property Courts in Wales against the two companies "in connection with the sale of parcels of publicly owned land to South Wales Land Developments Limited in 2012".
In a statement, Amber Fund Management said it would "defend any legal proceedings brought against it" through all legal means necessary and will "not hesitate to progress its counterclaims vigorously".
Analysis by Nick Servini, BBC Wales political editor
When the assembly's public accounts committee described the sale of the RIFW land as scandalous and cavalier, the minister in charge at the time said it was the final chapter.
But in truth it is far from the end of the road for a story that has been a constant source of embarrassment for the Welsh Government.
That report also said ministers had been poorly advised, this claim for negligence shows that ministers clearly believe that was the case.
The sale of this land initially prompted an inquiry by the Serious Fraud Office - which came to nothing. It will be fascinating to see how the next stage develops in the civil courts.
- Published15 July 2015
- Published26 January 2016
