Two politicians have questioned Liverpool Council’s involvement with a property company that investors say owes them over £40m.
Last month the ECHO revealed claims that North Point Global ( NPG) owed investors around £40,700,000.
The money owed to buyers is spread across four property schemes that all existed under the NPG umbrella. NPG formed a network of development companies to launch the four key schemes across the north west.
READ MORE:Property boss at stalled sites banned for eight years
The connected companies were behind stalled sites such as Baltic House, North Point Pall Mall, New Chinatown and the Element in Manchester.
The Insolvency Service recently announced that former NPG director Antonio Garcia Walker,44, has been disqualified as a company director for eight years. Mr Walker is the third former director of NPG to be banned by the Insolvency Service.
Now two Liverpool politicians have raised fresh questions over the relationship between Liverpool Council and NPG.
Councillors Richard Kemp and Steve Radford have expressed concern about a banner which said the Mayor was working in ‘partnership’ with a property company.
The banner, which appeared outside the old Coconut Grove building in 2016, read: “Mayor of Liverpool working in partnership with North Point Global. Demolition works underway. Exciting new residential development coming soon.”
The site was later demolished after years of delay and sold to a development company.
Liverpool council has said that neither the mayor or the council knew anything about the banner and that the developer was asked to remove it.
Liberal group leader Cllr Radford, who represents Tuebrook and Stoneycroft, spent years highlighting the plight of the old Coconut Grove building on Green Lane.
He said: “At the time some of NPG’s directors were already linked with a series of bankruptcies. The council has evaded many of my questions on this matter. The banner seemed to endorse this company and spoke of a “partnership” with the council which has to be alarming.”
Cllr Kemp, leader of Liverpool’s Liberal Democrats, said: “The issue of the North Point Global banner is a prime example of an unfortunate relationship between the council and this company which extended from Tuebrook to activities as far away as Hong Kong.
“I can only hope that the relationship between the Council and North Point Global continues to be looked at.”
Former Mayor Joe Anderson, who stood down after he was arrested last December as part of a probe into corruption, said to the ECHO: “Liverpool Council has already answered questions about the banner.
“I had no direct involvement in this particular site ( Coconut Grove). I drove past it everyday and at one point it seemed the site would be developed. Of course it was hugely disappointing it never materialised and was another false dawn for local residents. My job which I tried always to do was improve areas for local people.”
Mr Anderson also addressed the issues around NPG.
He said: “Hindsight is a wonderful thing. What we know now doesn’t help those who have been let down. No one at the council or elected members wished for any individual or the city to lose. That’s why I tried and the council continue to try and find a solution that helps those individuals who lost out. Those who attack the council now, had no comments to make at the time.
“The site is an important gateway to the city and the residents who live there deserve a solution that’s why LCC need to work to develop a solution that helps everyone.”
Mr Anderson, who denies any wrongdoing, was not arrested in relation to matters concerning NPG.
(Image: Liverpool Echo)
In response to a Freedom of Information Act request and questions raised by the Liverpool Echo in relation to the banner the council issued a statement in 2018 which read:
“Liverpool City Council did not pay for or contribute towards this banner in any form. The banner was erected without permission for the use of the City Council logo. As the City Council had no involvement in the design, planning or installation of this banner we do not hold this information.
“However we can advised that following an incidental pass by the site and the banner being observed the matter was immediately raised with the developer with an instruction to them to remove it. The Mayor and the City Council did not agree to or authorise the use of any logos or branding.”
Liverpool City Council said they had nothing new to add to the statement when approached again by the ECHO.
However emails leaked to the ECHO then presented a different picture. Some of the e-mails suggest that the then Deputy Mayor Ann O’Byrne was working particularly closely with the developers in relation to the Coconut Grove project.
One read: “Ann O’Byrne has just been on again wanting to know when demo at Coconut Grove starts. She’s saying next week will be a big help to Joe Anderson!
“Please come back to me ASAP as I need to respond…..”
Some of the e-mails suggest the wording for the banner came directly from the Mayor’s office.
One read: “We are awaiting the text from the Mayor’s office, it will be with us by end of play tomorrow latest.
“In the meantime please T up your printer with the information John will be sending shortly and advise wording to follow, this way we can gear them up and reserve printing time to hit the deadline.” Cllr O’Byrne has declined to discuss the matter with the ECHO.
The council then released a statement which said that they had answered the freedom of information request “in good faith.” They said that following an investigation it was found that the response was “incomplete.” The council then referred the matter to the Information Commissioner’s Office ( ICO). The ICO took no action in relation to the matter.
(Image: handout)
Mr Walker is the third former director of North Point Global to be banned by the Insolvency Service.
The Insolvency Service has now said that during his tenure at Baltic House Developments he “permitted” the company to release £2,594,232 of investors’ deposits to third parties in the forms of loans and payments.
And that Mr Walker, during his tenure at Warwick Road Developments ( Manchester Ltd), “permitted” the company to release £2,301,273 of investors’ deposits to third parties in the forms of loans and payments.
David Choules, a former director of North Point Global, North Point Pall Mall Limited, Baltic House Developments, the Chinatown Development Company and Warwick Road Developments (Manchester )Ltd, was banned from being a company director for seven years in 2020.
Former BHD and CDC director Lee James Spencer was banned from being a company director for nine years in 2016.
The ECHO has previously revealed that Mr Spencer had been a director of four business which had all gone into liquidation before the council backed the New Chinatown scheme and before the council granted a lease to CTDC for the New Chinatown site.
Companies House documents state that the four companies owed large sums of money at the time of liquidation.
The ECHO recently carried out an investigation into the network of companies behind NPG.
It emerged that the NPG was controlled by a 64-year-old man whose registered address was a terraced house on Stapleton Avenue in Speke.
Investors say they are owed £12m at Baltic House on Norfolk Stree t, and £4.5m in the high profile New Chinatown scheme.
Buyers who invested in the Element scheme near Old Trafford in Manchester appear to have lost £6,279,378.94.
The largest single amount owed to buyers is at North Point Pall Mall, where buyers are said to be owed £18m. A spokesperson for the buyers company that represents investors in the scheme described the situation as a “nightmare. “
The Serious Fraud Office (SFO) launched an investigation into “suspected fraud” at North Point Pall Mall and the Chinatown Development Company in 2018 .The SFO have said that their investigation was “ongoing.”
NPG is now in a company voluntary arrangement. A CVA is where a company seeks to come to an agreement with creditors.
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