The Fast Track Sale of Glodwick Baths
This Oldham Council Cabinet Report dated 25th January 2016 reveals the Council agreeing to the sale of the old Glodwick Baths. At the time, according to Oldham Council records, JIM McMAHON was still involved in the Cabinet. At the meeting, when the item regarding the sale of the Baths were discussed, Cllr AROOJ SHAH declared a ‘prejudicial interest’ and left the room.
At the time, the Labour Party Councillor AROOJ SHAH had been fighting a bitter campaign to remain Councillor. Already, the local branch of the Labour Party had been suspended from being able to deselect her. Shah was now also aware that she would face stiff competition from an Independent candidate. The election was going to be tight.
Just days before the election, The Ghazali Trust, an organisation with strong community links in St. Mary’s Ward, took to social media to announce that they had secured the former Glodwick Baths for community use.
Was the timing of their announcement a coincidence or had something more sinister take place?
The Cabinet Meeting 25th January 2016
Information extracted from this Council meeting identifies the following:
A four week tender exercise was approved on the 17th November 2015. It is unclear why this marketing exercise was restricted to 4 weeks, especially in the lead up to Xmas. Glodwick Baths was a public asset and like any public asset, the public would perhaps have rightly expected that we received maximum return for the disposal of our assets.
The marketing exercise resulted in the Council receiving two tenders by the closing date of 12 Noon on Friday 18 December 2015. It is unclear what this actual exercise was and where the site was advertised. Additionally, the Council received a late offer via e-mail received on the 5 January 2016. An examination of the minutes show that for whatever reason the Council considered this bid. My understanding of tendering arrangements is that considering a bid received after the deadline, when details of the other 2 closed bids would have been known, is unlawful. The 3rd bid should not have even been presented or even discussed at this meeting
The Council in its wisdom agreed to accept the LOWER offer. In their own words, ‘the second highest offer be accepted on the basis that this was deemed to be of greater social value / benefit when compared to the other offer received.’
Though the Council did not disclose what ‘market value’ for the property was or whether they actually independently valued the Baths, they confirm that the sum they agreed to sell a publicly owned asset was undervalued by £52,000. The Council also fail to disclose the amount of the winning bid.
To proceed with the sale the Council determined that contacts were to be exchanged within two months of the date of the letter confirming the Council’s acceptance. Whilst we do not yet have a date for this, one can imagine that 2 months would take us in to April. The Council were already fully aware by this time that the sale would likely be completed in the lead up to the May local elections. This period is known as purdah. The Council would have been unable to make the announcement of a sale during purdah, particularly as it was ALREADY aware that Cllr Shah had declared ‘prejudicial interest’.
The Ghazali Trust
A search of the Land Registry confirms that the site was sold to the Ghazali Trust for a bargain price of £75,000. The sale was completed during purdah on the 18th April 2016. Having learned a lesson from what most of us would consider an 18 year interest free loan in the sale of land to Oldham Central Mosque, I’ve submitted an FOI which includes seeking confirmation that the Council actually was paid the £75,000 at the point of sale.
There is no evidence in the public domain that the Council undertook any checks to confirm the capacity of the Ghazali Trust to actually complete on the purchase of the property. For instance, small matters such as proof of funds. A quick inspection of their financials on Companies House and with the Charity Commission shows that the total amount of money the Ghazali Trust had to their name was £97,702
Perhaps MAJID HUSSAIN or one of the other 2 Directors (that’s correct, this organisation only has 3 Directors) will come forward to reassure the wider community that they did not pick up a public asset on the cheap in exchange for in any way supporting AROOJ SHAH in her re-election campaign. To help reassure the public, he may also want to confirm that they bid before the deadline the 18th December 2015 and not by e-mail on the 5th January 2016. Maybe he will also clarify the nature of his and other key individuals within the Ghazali Trust’s relationship with AROOJ SHAH. After all, Cllr AROOJ SHAH did declare a ‘prejudicial interest’ in the organisations bidding for the site.
Purdah
The Ghazali Trust then took to Facebook on the 28th April 2016 to announce they had acquired the former swimming baths and were looking for people to help give it a new name. The rules for purdah are very simple. The relevant bit 'could a reasonable person conclude that you were spending public money to influence the outcome of the election?’
I cannot see any circumstance why the sale of the former Glodwick Baths had to be rushed through this way, days before an election. This was a derelict building. What difference would just over 2 weeks have made? I am also suspicious of the timing of the Ghazali Trust’s Facebook announcement.
The Oldham Context
Unfortunately, for those familiar with Oldham, the question marks and motives over the sale of the former Glodwick Baths is not unique. For a long time, many of us have suspected that our assets were being given away to organisations in exchange for votes. Whilst I cannot confirm whether this is one of them, what I do believe is that it is in the public interest for the Council to quickly answer my FOI here.
My own thoughts are that this case merits an investigation. Breaking purdah is unlawful and can result in a criminal conviction. And if that 3rd late bid was from the Ghazali Trust, well if it was, I suspect the Police will be forced to intervene as it suggests something worse..