'Who knew about Costain legal bill advice?'

Newbury Town Council quizzed over failure to claim back £50,000 of legal fees in 2010

THE row over Newbury Town Council’s ongoing legal dispute with Parkway developer Costain resurfaced this week – after questions were asked about its failure to claim back up to £50,000 of public money in 2010.

In July 2014, the council’s former deputy leader, Ruwan Uduwerage-Perera, revealed that the local authority had missed out on the chance to trigger a legal expenses claim with an insurance company to recoup a portion of its fees four years ago.

In December 2014, following an internal investigation, the council admitted the mistake and put the fault down to ‘human error’, adding that it now “considered the matter closed”.

However, at a Newbury Town Council policy and resources meeting on Monday, Apolitical Democrat candidate Charlie Farrow asked which councillors knew about the claim.

Mrs Farrow, who will be contesting the Northcroft seat at the town council elections on May 7, said: “Was the chief executive officer the only person to know that no claim had been made on the Victoria Park legal insurance, prior to the whistle being blown?”

To which Mr Swift-Hook replied: “The issue to which you refer is subject to legal proceedings, so I cannot comment further.”

Mrs Farrow then claimed: “I know from email correspondence that has been read to me, that you, Mr Swift-Hook and Ifor Sheldon, your predecessor as leader of the council, together with another officer, were aware that advice given verbally by Gardner Leader to claim on the legal insurance should have been actioned and was not.

“And although the chief executive officer offered to take responsibility for the omission, it is in fact the members of the council who are jointly liable.

“As such I would like to know whether the members of both parties were informed and when; and if they were not, why you sanctioned the cover-up that led to an officer being allowed to shoulder personal responsibility for what is ultimately the members’ decision?”

To which Mr Swift-Hook again replied: “It is currently subject to legal proceedings and therefore I cannot comment, I am sorry.”

Cracks and subsidence in Victoria Park and surrounding area appeared shortly after Costain conducted water extraction works when building the Parkway shopping centre’s underground car park in 2010.

The cracks damaged sporting facilities in the park, including Newbury’s historic bowls club lawns. Residents complained of damage in their homes, and Victoria Park Nursery School was also affected.

The town council launched legal proceedings shortly after the damage appeared and the subsequent four year legal battle has cost more than £100,000 and keeps rising, with the council paying out £50,000 of legal fees in the last six months of 2014 alone.

In his letter of resignation to the council, Mr Uduwerage-Perera accused the council of “failing to disclose the loss of public money, and of failing to uphold the basic principles of public office”.