• £3 mlln. loss to Council at Alexandra Palace Trust

IT IS REPORTED there is a £3,000,000 hole in the Council’s accounts caused by losses at the Alexandra Palace Trust. Mismanagement has been a chronic problem at the Council-controlled Trust, but the past year saw a ballooning of waste, mistakes and irresponsibility. The Council recklessly tried to give our Palace as a ‘developer shell’ to their favoured property developer (Firoka). And now the Charity Commission has opened a case about the matter, with two officers appointed.

The Trustees’ decision last year, to grant a temporary trading licence to Firoka, was like agreeing to sell one’s house for say, £1.5m. Then, on the day of Exchange-of-Contract, handing the keys over and giving vacant possession—without waiting for completion. All this, without taking any deposit, let alone receiving the purchase price.

Then, after you move out, you continue to pay the rates, gas, electricity, phone and insurance bills on your old house. You also still pay the wages of your old cook, cleaner and the gardener at your former home. And you pay for an odd-job man, plumber and electrician just as the new ‘owner’ requires. To do this, you’d have to be either a half-wit or Haringey Council.

The councillor-trustees agreed—probably unlawfully—to a similar sketch for our charity. With this background, is it any wonder that Firoka enjoyed such a long, profitable time in our house at our expense, before the Council reluctantly evicted them?

Despite spending three quarters of a million pounds on their own lawyers, the council appears meekly to have just signed every document placed in front of them by Firoka’s lawyers.

In May 2007, the current Trust Chairman inherited problems from the previous AP chairman, in the recurring cycle of this depressing saga. As the chairman has now been reappointed for another 12 months, sooner or later he and his fellow Trustees ought to begin to take responsibility. The likelihood is that in another 12 months the chalice will be passed on, without progress, to another set of inattentive amateurs.

As for this year’s £3.1 million loss that Haringey taxpayers are expected to make good, the chairman had this to say, probably drafted by Lexington Communications, the PR company employed by our charity:

“The Palace’s accounts are always discussed in open forum and this years’ discussions were no different, these figure have been a matter of public record for months. As unanimously agreed by councillors, a provisional deficit of £3.1 million is in line with the revised budget allocation confirmed by Haringey Council in the last financial year. Alexandra Palace Charitable Trust’s accounts are currently in draft and will be audited and agreed later this year as normal.”

Lexington’s language  in effect means, ‘move along, there’s nothing to see here’. In attempting to pass off this huge loss as business-as-usual, the Board Chairman is correct in this respect: the poor decisions by the Councillor-Trustees are typical and they will continue – as long as Trustees are Councillors. A disaster is presented as not merely normal, its almost a matter for celebration. A unanimous vote that there is a deficit, is almost a triumph.

It seems presumptuous to state ahead of time and publicly, that the accounts … will be audited and agreed. An auditor of a private sector company would rightly take umbrage at such a statement, which no real CEO would be likely to make. Auditors are supposed to be independent. The chairman’s statement seems intended either to intimidate the auditor (as the trust bullies the Charity Commission), or it demonstrates little regard for the importance of the auditor’s function as an objective check on the Trust accounts.

The chairman also stated categorically that “We are not subject to any investigation by the Charity Commission”. And yet, when a member of the public asked the Council for an unredacted copy of the licence that permitted Firoka to occupy our palace, it was refused in writing by the Council itself, on the grounds that there was an on-going investigation. The apparent contradiction of this with the chairman’s statement, could be accounted for, if the running of our charitable trust by the Council is the subject of investigations by multiple regulatory agencies.

Most of the Trustees take little interest in this multi-million pound business. Trustees that do try to take an interest, are obstructed in obtaining the most basic information from the coterie of council-cronies who control our charity. One Trustee was informed that he would need to complete a formal Freedom of Information application to obtain a basic document.

Obsessive secrecy has long been a feature of this unfit-for-purpose body and the lack of scrutiny has led to huge losses. One bad decision begets and another bad decision. As a whole, the Trust Board has no shame and take no responsibility for their ineptitude. Meanwhile the opportunities of a community-based solution are brushed aside and council tax payer pick up the bloated bill for bungling.

Edited version
"Bill for Bungling has passed £3m"
Ham&High Broadway

'Pally finances still in disarray'
published in Hornsey Journal,

16 July 2008

Beware bogus charity operating in this area

HARINGEY residents should beware of a bogus charity operating in this area. Using fraudulent claims, it has fleeced donors for huge sums over a long time, with the scam reaching a new intensity last year. Innocent donors do not suspect the true nature of this so-called “charitable” trust.

Do not hand over cash! Collectors for this charity are licensed by the Council but have been known to knock on doors and tell flat out untruths. Superficially respectable, they are easily identified by their pompous platitudes. Residents should close the door and refuse to believe claims made by it’s representatives.

Why should residents disbelieve it’s statements? Like all charities, this one has charitable aims and objectives, but unlike real charities, long ago these aims were forgotten. There is practically no charitable activity.

One example of the perversion of charitable aims occurred on Fireworks night last year. Donors had already paid for the fireworks for a display in a nearby park. Normally its costs are offset by profits from trading activities, but collectors held out plastic buckets into which the public were invited to make additional donations. Where did this cash go?

Unlike most charities, this one owns a valuable asset, rich in history and paid for (£100m?) over the years by donors. But it has been badly neglected. The trustees have been quietly trying to sell this huge asset, for a nominal sum, for property development. This would forever preclude any chance of fulfilling the original charitable aims.

The Charity’s solicitor has written to the Charity Commission, asserting that “casino use does fall within the objects of the Charity as a recreational activity”. The Salvation Army, this charity is not!

In most respects, this charity is run as a private limited company. Unlike most boards of directors, this one rips off its shareholders. It is self-perpetuating and in practice is run for the benefit of its top-heavy senior management and professional advisor-hangers-on.

It is this Borough’s largest expense account. One of the ways it can be distinguished from most charities is by the fact that the Trustees pay themselves cash out of charity funds. It’s fine by the rules under which they operate, but dubious under Charity rules. It conducts much of its business in secret.

Trustees are transitory and are not appointed for their professional expertise. One was overheard to say “I don’t know what’s going on” – they do not take responsibility for mistakes that have cost its donors dearly.

The ‘donors’ are every resident and taxpayer in Haringey. The charity is part of a municipal empire and its name is Alexandra Park & Palace (registered charity no: 281991). It’s trustees are Haringey Council.

Recall at Amnesia Palace

Or, does Alexandra Palace cause memory loss?

SOME TIME AGO, the Alexandra Palace Trust Solicitor claimed that our charity had never made a profit in “living memory”. This was a curious phrase, but it does contain a clue to a peculiar condition affecting council officials who control our Palace.

The Trust’s solicitor clean forgot that the AP trading company made operating profits in several years and in the 10 years to 2006, was modestly profitable overall.

In the first Board meeting after the High Court stalled the sale of AP, the Trust Solicitor told Trustees said that the Lease had been made available to the public – but forgot that the Lease was deliberately concealed at the time of the Charity Commission’s Public Consultation and a redacted version was made available, only later.

Memory loss is normally associated with old age, but the Council officials responsible for our Palace seem to be affected prematurely.

What is the evidence for Memory-Loss Alexandra Palace Syndrome (M-LAPS)?

The AP sale documents were so secret that the Trust’s beneficiaries (us public) were not allowed to see a single page during the Charity Commission’s Public Consultation in December 2006. The Council stated they were subject to “commercial confidentiality”.

But in a Council debate about AP’s future in July last year, the Chairman of the Trust said that it was “all in the public domain”. He had no recollection of any Council secrecy over the sale.

Our young chairman appears the worst afflicted by M-LAPS. The plans for a casino at AP remain a total blank. He said to me and others that a casino was a “myth”, but forgot it’s on Firoka’s architects’ drawings.

During the recent mayoral election, the chairman of our charitable trust was out canvassing for Ken. At least one Wood Green resident was told on the doorstep that, it is written into the Lease that it would be illegal to have a casino on the premises (!?). This is a big confusion.

If the chairman had read the Lease, then he completely forgot that, in the four brief paragraphs of clause 3.12 Restrictions affecting use of the Premises, there is not a word about casinos. But the lease is not silent on the subject of casinos: seven short paragraphs earlier (3.11.2.6), the Borough of Haringey expressly gives permission to Firoka for use as a small casino.

The AP chair has insisted that a casino cannot happen, but the poor chap forgot that his own council already gave permission in the legally binding Lease. And this was drafted and agreed after the council executive voted against applying for a casino licence in 2006 at Golden Alexandra Palace. Such a muddle could cost taxpayers money if Haringey does renege on that contractual promise.

(The Council reminds us of the executive’s ad hoc decision not to apply for a casino licence at one time. But they forget that there has been no Full Council Resolution to institute a no-casino policy, leaving the door open to the casino wanted by at least one Member of the Executive, Councillor Lister.)

The forgotten Victorian Theatre, magically preserved in a time warp seems to have been overlooked by the Trust Board and may face an uncertain future with the Council’s favoured property developer, along with the Willis organ. Both were largely ignored in the ‘holistic’ sale of the entire building to the property developer.

Everyone associated with the property disposal overlooks that the so-called “old” and “disused” studios, are in fact the first television studios in the world. But the area of BBC Studios A & B are remembered in the plans: they’re earmarked for office space.

After prompting, the chairman managed to remember that the Lease gives permission for an office in the building, but due to chronic M-LAPS, he could not recall that it is to be 30,000 square feet’s worth of commercial office space in our charity’s premises.

THE CHAIRMAN's Xmas blog promised more openness and information. Months later, that is forgotten. The Trust Board always remembers how to exclude the press and public from the parts of meetings that are exempt (i.e. secret and embarrassing), but forgets that our Charitable Trust was set up for the benefit of the public.

Was M-LAPS responsible for the failure to renew the temporary licence to Firoka, whose Period expired on 1st August 2007, but whose occupation – and hyper-profits – lasted another five months before their eviction?

Is there something debilitating in the building that induces M-LAPS? Is it asbestos dust? Perhaps the world’s first television mast emits magnetic pulses which erase parts of Councillors’ memories. Or is it stress and exhaustion that causes M-LAPS at Amnesia Palace?

Published
Ham & High
29 May 2008

• CHAIRMAN’s blog Xmas day, 2007

The Christmas day message of the Chairman of the Alexandra Palace Trust.

IT was good of the Ham and High to offer a forum to facilitate a meaningful debate about the future of Alexandra Palace (editorial, 29 November). Unfortunately, the proponents of the current policy – getting rid of the whole building for a paltry £1.5 million – seem not to want to join a debate.

This is a pity, because the public - mere beneficiaries of the Charitable Trust - are often excluded from listening to the Trust Board’s deliberations; still less do they have an opportunity directly to influence the decisions that the Board makes on their behalf’s.

In his Christmas day message from Brighton the Chairman of our Trust had this to say in his Blog about the future of the Palace:

It's funny picking up a copy of the Ham & High and reading things which people attribute to you personally which are either hugely wide of the mark, totally untrue or so widely speculative that you could drive an articulated lorry through most of the arguments that are put forward by spokespeople for status quo and/or unrealistic ideas about ally pally's future.

If there is anything in the Ham & High that is ‘wide of the mark’ the chairman owes it to himself to spell it out clearly and if there is anything ‘totally untrue’ about him in the paper, he needs to identify it and insist on a correction, so we are all better informed. If Cllr Cooke honestly feels that he is being misrepresented, he should represent himself by joining the debate which the Ham & High offered to host.

If Councillor Cooke thinks ‘you’ could drive an articulated lorry through most of the arguments [of his opponents] … why doesn’t he climb into the cab and drive it forward himself? He does have an HGV licence doesn’t he?

Even defeat in the High Court, costs being awarded against his Trust and scathing condemnation by the judge, have failed to persuade Cllr. Cooke that his Trust’s ideas about Ally Pally’s future are unrealistic.

There seems to be a readiness to engage in bluster, but an unwillingness to address specific points. The Board avoids talking about detail – indeed they avoid saying anything at all - and prefer to speak through a PR company.

When Cllr. Cooke attempts to make a detailed point, like the (false) claims of asbestos in the TV studios, he is quickly shown not to be in possession of the facts. Cllr. Cooke - in person - claimed to me and two members of local residents associations, that it was a myth that a Casino was a part of Firoka’s proposals (the casino is shown in Firoka’s architects’ plans which are a matter of public record). It is a myth that young Matt is fully familiar with his brief.

Cllr Cooke and his fellow trustees are reluctant to talk about the world’s first television studios and refuse even to utter that phrase, lest it draws attention to the fact that his Trust is acquiescing in their eventual destruction.

I have previously referred to several of Cllr Cooke’s claims, including his denying there was any Casino proposal, his (scurrilous) claim alleging asbestos in the TV studios and his claims that everything about AP’s future was in the public domain (dissembling, to put it mildly).

In the Ham and High others have drawn attention to the false claims about wheelchair inaccessibility and misleading claims about BBC disinterest in the Studios. The huge, chronic misleading about finances is too great a subject to cover here; for them moment, I say that the Council has not been accurate over its claims of debt owed to it by AP.

The unwillingness to join open public debate is no surprise. Obsessive secrecy has been the hallmark of the scandal of the sale of Alexandra Palace, something which Cllr. Cooke has done nothing to rectify since becoming chair in May. He regularly insists on excluding the press and public from Trust Board meetings. Cllr Cooke has personally mislead about the extent of the secrecy, notably in a council debate in July when he said that the future of Ally Pally was all in the public domain: utterly, outrageously, untrue.


In his Christmas message, Cllr Cooke goes on to say:

What I really hope to achieve through the coming period as chair is for a period of calm reflection about how things could have progressed differently over the last year or so at the palace and how we move forward in a way which is informed by that past whilst also being visionary and having the confidence of local people …

(Funny there was no mention of his Trust’s defeat in the High Court in October and the fact that costs were awarded against his Trust because of his Trust’s conduct. He does not quote the Judge’s remarks: “The Trustees are the authors of their own misfortune”. We will look for content in the blog in the weeks ahead.)

At the end of the waffle about moving forward and being visionary, Cllr Cooke seeks the confidence of local people. Fat chance. His Trust had done everything in its power to limit the public consultation and restrict information available to the public. He may not have noticed that of the 328 people wrote in to the Charity Commission, 324 wrote in expressing at least some concern about his Trust’s proposal (i.e. 99%). This may be unprecedented for a Charity Trust asset disposal.

If we assume the 4 (four) people who wrote in support are probably connected to the Trust, it is safe to say that the Trust’s proposals do not enjoy the confidence of local people.

It is surprising that the Chairman does not go into any detail on his own personal Blog, where he need have no fear of being contradicted, misquoted or misrepresented. He could have taken the opportunity to refute any wrongful things said about him. He seems to be ambivalent about which are the matters best left to the public relations company.

Is Councillor Cooke prepared to stand by the press releases of the PR firm that he is paying with our money? Our Charitable Trust is using Charity funds to employ one of London’s leading public relations firms (Lexington Communications) to mount a PR campaign on behalf of the Trust. They have their work cut out. Is our Charitable Trust paying enough money to the PR company in order to get their message over? Cllr. Cooke’s complaints about press coverage seem to suggest the PR company have not yet succeeded in the PR campaign and more of our money may yet have to be spent in order to persuade us.

The Councillor is sure of the righteousness of the Trust’s flog-our-heritage policy, but because he is convinced he knows best, he won’t get into any detail, beyond misleading claims that AP is costing the Council money.

While the chair engages on quiet meditation over the weeks ahead as to where it all went wrong, the practical consequences of the failed policies pile up. We can only hope that the chairman takes a genuinely fresh look at the Palace and questions the fundamental assumptions of the get-rid-of-it policy.

The one thing we can all agree on is that the present situation cannot continue. It is (typically) misleading of the chairman to speak of saveallypally.com as proponents of the status quo.

The “status quo” comprises Council-appointed trustees pursuing a bankrupt policy of trashing our history and heritage and flogging Alexandra Palace for £1.5 million, a sum almost certainly exceeded now by the sale costs.

The positive alternative proposed by saveallypally.com, is for the Council to agree to a hand-over of the Trust to new, non-political Trustees. New independent Trustees would be unlikely to do a worse job of stewardship than the Council has over the past 27 years, and would quite possibly do a very much better job. Such a change would probably enjoy more public support than the proposals supported by Cllr Cooke. New Trustees would be the first step to a brighter future which would not involve a total betrayal of the Trust’s original charitable objects.

Let’s get the politics and the politicians out of our Charitable Trust of which we are all beneficiaries.

letter sent to and published
by the Ham and High
10 January 2008

• Carry-on-bungling

IT'S CARRY ON bungling at Alexandra Place, with Council-appointed Trustees last week agreeing to evict the Council’s favoured business partner (Firoka) and in the same breath, begging him to stay (!). The public could be forgiven for being confused and it would all be hilarious but for the fact that the incompetence and mismanagement is being paid for by us and by cuts to services. The bungling tab is picked up by the Trustees = The Council = Taxpayers.

HARINGEY would have the public believe that the Firoka-eviction is the smooth execution of a coherent strategy to relieve ratepayers of a large burden. A spokesman for AP stated “it was a good time to end the agreement giving both parties an opportunity to reflect on the outcome of the judicial review” (they’ve had about nine weeks to consider on the judge’s damning remarks). The Chairman said of the U-turn “… it is right and proper that we now look to bring our own trading company back on-line …”

The truth is different. Firoka’s occupation - approved by the Trustees - was brought to the attention of both the Attorney General and of the District Auditor. The Trustees knew that the slipshod situation they had engineered would not pass muster. We shall watch with interest to make sure they really do leave and that this is not just another Haringey-sham.

Firoka leaves the Palace having trousered money from all the events held there since May. This could be a seven figure sum. We do not yet know how much of this money is owed to our Trust and how much, if any, has been passed to our Trust. We do know that Firoka has not paid for the Lease since they assumed the management of the building in May; the Lease was quashed by order of the High Court of Justice on 5 October 2007. Haringey let the occupation slide on for a further nine weeks.

Did the oft-quoted short-term licence agreement “dated” May 2007 really exist? Does the public get to see a copy of the 28 day notice to leave? When did the notice start? It is besides the point that Firoka may have paid some running costs during the time of their occupation. Did they pay rent? Goodwill? A Premium? Who pays for Insurance? Repairs? Maintenance? Is the taxpayer to wear all this? When will the Trustees take responsibility for this bungling?

Firoka’s boss at the Palace, Shaun Ormrod leaves behind a bruised and demoralized workforce, what is left of it. Ormrod expected to stay in charge and the staff were unhappy with the management style. They were encouraged to resign, which avoids eligibility for redundancy payments. It is surprisingly that a Labour Council allowed its workers to be treated so shabbily.

Firoka should not have been allowed in the palace in the first place. The incompetent Trustees, some of whom do not know what is going on, agreed to a late change in the Lease by Firoka, that would allow Firoka to occupy the Palace just one month after the Charity Commission sealed the sale Order. Normally the period would be three months, allowing sufficient time for any Judicial Review to manifest itself.

How many folk selling their property would allow possession before completion? In effect, this is what the Trustees agreed to.

The Trustees and their legal advisor, if they thought about it at all, were presumably gambling that no legal challenge would come. It came, they lost, costs were awarded against them. It seems that negligence was involved at some point and it is a pity that the Trustees never take personal responsibility for their decisions, otherwise they might take them more seriously.

The Trust chairman said

“The time has come for Firoka to decide whether to move ahead in partnership with us as preferred development partner at the Palace. If there is a will to progress, we are prepared, ready and willing to move forward.”

The time has come for the Trustees to decide whether or not to persist with the biggest rip-off of public assets in Borough history, or to hand over the reigns to those who have the interests of the people at heart.

The Chairman has spoken of his love for the Palace: so much love that he can’t wait to get rid of it! His love for the Palace might be compared with the love of a mother giving up her baby for adoption to a known pedophile! (see: Firoka and Oxford City Council)

The Council believes their problems over AP will end as soon as they get rid of the Palace. But when new problems arise, the public would still look to the Council as Trustee to solve them. Except the Council would be in a hugely weaker position to do anything about it, having sold the building.

Eviction of Firoka does not end the troubled stewardship at Alexandra Palace. The only thing that will end the agonies over AP will be a change in Trustees, away from the dead hand of an incompetent Council.

[letter sent 17 December 2007]