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Financial Integrity, Football

GGHB/NHS GGC Board had no oversight on Lennox Castle Hospital land sale

It’s been said that the GGHB/NHS GGC Board knew all about and were across the Lennox Castle Hospital land sales. Well it doesn’t appear so.

I’ve searched the NHS GGC document site after the 22nd October 2002 when the GGHB Board agreed to the contents of Board Paper 02/71, which only relates to the disbursement of funds, the NHS GGC/GGHB still had responsibility for the disposal of the land.

There is nothing in the Board reports, agendas or minutes after 2002 about Lennox Castle Hospital. All documents released by the NHS GGC on Lennox Castle Hospital land disposal relate to operational persons. The board had no oversight on this transaction at all. The Chief Executive, who signed off on the Celtic deal, appears not to have reported to the Board the disaster that was the Lennox Castle Hospital land sale. It surely would have had to been discussed at a Board meeting. Nothing.

I’ll pull this post if this statement is wrong.

It is claimed that a sub-trust of Greater Glasgow NHS Trust, the Greater Glasgow Primary Care Trust, was responsible for the negotiations. Why then did the sub-trust ask permission of the Greater Glasgow NHS Trust for the disposal of the Lennox Castle Hospital in the report if it had full delegated powers? And where are the minutes of the Capital Planning Group of Primary Care Trust on 17 August 2005 where formal decision was made to accept Celtic PLC’s offer and did that sub-trust have the delegated powers?

NHS GGC Annual Report 2006-07

With the sale of the upper site of Lennox Castle Hospital to Celtic on 29 June 2006 you would think it would appear in the NHS Greater Glasgow and Clyde Annual Report for the year ended 31 March 2007 but to no avail, not a footnote.

Were there any other similar land disposals? Well on page 7 it’s stated that:

‘During the year, the disposal of the former hospital sites at Hawkhead and Woodilee was concluded,
generating proceeds of £54m. The disposal of Woodilee Hospital allowed the Board to make a capital grant of £6m in 2006/07 to the Kirkintilloch Initiative (KI). This was consistent with the terms of the KI joint venture agreement entered into with East Dunbartonshire Council, and will enable KI to make progress with achieving the regeneration objectives of the Kirkintilloch Initiative programme.’

There is no mention of the £493,000 in the Annual Report which Celtic paid going to the Lennoxtown Initiative. Why? The Tripartite Agreement says that the funds the NHSGGC/GGHB got from Celtic FC for the Upper Site went to the Lennoxtown Initiative.

Were they so ashamed they got so little?

The NHS GGC is pushing back on what it was paid for the Lower Site by Mactaggart & Mickel. The builders appear to have swapped the land they had at Hole Farm, which East Dunbartonshire didn’t want built on, for the Lower Site.

So did the NHS GGC/GGHB receive any funds for the whole Lennox Castle Hospital site? Well the board wouldn’t know – they weren’t watching or being informed in Board meetings.

Surely the Lennox Castle Hospital asset was sitting on the GGHB balance sheet and the failure to meet that asset price would have realised a loss? Was a loss rolled into the profitable asset sales above?

Compare & contrast the Hawkhead and Woodilee land sales with Lennox Castle and the thriving Kirkintilloch Initiative which is still active and the mothballed Lennoxtown Initiative which started after the KI.

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Discussion

One thought on “GGHB/NHS GGC Board had no oversight on Lennox Castle Hospital land sale

  1. It would be interesting to see the land deals involving Hawkhead and Woodilee land sales and how they can make £54Million 100 times more than Lennox Castle. Could it just be that Celtic weren’t interested in those particular deals as no fabricated discounts were on offer?

    Posted by Scott Macboy | April 14, 2014, 9:16 am

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