In a press statement issued by Coventry City Council Leader Ann Lucas and Leader of the Conservatives on the Council John Blundell, it was said that it was felt in the best interest of the taxpayers in Coventry to off-load the Council's interest in Arena Coventry Limited.
The statement reads: “We can confirm that we have asked officers questions relating to the position of ACL and other linked issues. We are satisfied that the advice given by officers demonstrated that it was in the interests of Coventry council taxpayers to make a decision to dispose of the council’s interest in ACL.
“The transactions in relation to the council’s sale of its interest in ACL will be scrutinised by the independent external auditor as part of the audit of our 2014/15 accounts. The council does not anticipate any issue to arise.
“The loan to ACL in January 2013, has already been subject to audit as part of our 2013/14 accounts, with no concerns.
“Ultimately it was a unanimous decision of the council to approve the sale of the council’s shares in ACL to Wasps. We have always been of the view that the long term future of ACL is best secured with a strong sporting club at the arena to drive business forward.
“Legal proceedings are ongoing so we are unable to comment further about any aspects or details of this issue."
A second statement reads: “In all our decision making we pay close regard to our statutory duties to ensure we deliver value for money and secure the best outcome for the city and council tax payers.
“In the case of a significant decision like making a loan to ACL or selling our share holding in ACL, this will involve detailed and specific external advice, alongside the requirement common in all council reports to include detailed consideration of the financial implications, the legal implications and the risks involved so councillors can make decisions based on full and sound information.
“In negotiating the sale with Wasps, all aspects of the deal were subject to detailed internal consideration and then professional, specialist external advice and scrutiny.
“The ACL Shareholders Panel, made up of key senior councillors, including the leader and deputy Leader of the opposition, were kept updated on negotiations.
“A briefing for all councillors was held ahead of the report being discussed at full Council.level. Owner of Wasps and chief executive, Derek Richardson and Nick Eastwood attended part of the meeting so councillors could talk to them and challenge them directly.
“Legal proceedings are still ongoing and so we are unable to comment further about any aspects or details of this issue.”
Full story - http://www.coventrytelegraph.net/news/coventry-news/ricoh-arena-independent-auditor-review-8579981