Gove orders inquiry into freeport corruption claims

MICHAEL GOVE has ordered an independent review into claims of corruption at Britain’s biggest freeport.

The Levelling Up Secretary said that he had taken the “exceptional decision” to commission an independent panel review into the redevelopment of what was the Teesside Steelworks.

The Teesworks project, a joint venture between two local developers and Tees Valley Combined Authority led by Conservative mayor Ben Houchen, has been rocked by allegations of cronyism in recent weeks.

Local MP Andy Mcdonald used parliamentary privilege to allege “industrial-scale corruption” between Mr Houchen and businessmen Chris Musgrave and Martin Corney.

Reports allege that land worth millions of pounds had been sold off for as little as £1 an acre and that Mr Musgrave and Mr Corney were given a larger stake in the joint venture effectively for free.

Mr Houchen has denied the claims and said that they are part of a Labour smear campaign.

In a statement from Teesworks given to the BBC last month, Mr Musgrave and Mr Corney said they had “nothing to hide” and accused Mr Mcdonald of “an abuse of power”.

Mr Houchen wrote to Mr Gove to say he would “wholeheartedly support” a parliamentary investigation into allegations of wrongdoing connected to the 4,500-acre site. His letter came in tandem with Lisa Nandy, the shadow levelling up secretary, asking the National Audit Office (NAO) to open a full investigation into the Teesworks project.

Mr Gove said the NAO would not be the correct office to conduct the investigation as it did not have the power to examine local government bodies.

However, he said: “Given the importance to you and to Teesside of addressing this matter, I have taken the exceptional decision to support the commissioning of an independent review to consider the specific allegations made.”

Mr Houchen said he welcomed Mr Gove’s decision.

He added: “As someone whose primary responsibility, as mayor of the Tees Valley, is to attract investment and create jobs for local people, I felt that the recent misinformation and the abuse of parliamentary privilege by Andy Mcdonald was starting to have a negative impact on the prospects of Teesside and the local community.

“I feel that an independent review is necessary to show investors, businesses and local people that there is no corruption, wrongdoing or illegality in what has become and continues to be an incredible project for jobs and investment in our region.”

A government spokesman said: “The Government will be announcing the appointment of a panel to undertake the review shortly.”