RECLAIM RAMSGATE SEAFRONT Part 1
The tranquil seaside town of Ramsgate is begining to
stir. Mysterious graffiti is appearing. People are turning out in large numbers
to public meetings on cold, dark evenings. Facebook groups, blogs and twitters
are alive with speculation. People are queuing on
the High Street to sign petitions. I’ve heard whispers of marches,
demonstrations and even occupations!
So what’s it all about? What’s turning normally peace
loving Ramsgateonians into modern day Che Guevara’s fighting for People Power?
Well it’s a long story, but in 2002 Thanet Council’s
ruling Labour Group appointed a company called SFP Venture Partners Ltd to transform
a derelict beachside wasteland into a
prestigious £22million seafront regeneration project.
SFP promised the Council that, by 2014, they would build a
luxury hotel, business units and exclusive seafront apartments. They claimed that the development would kick
start Ramsgate’s ramshackle economy and create jobs by the bucketful. At the
time, the Thanet Gazette was full of stories of first division footballers rushing
to Ramsgate to handover large down payments for off plan penthouses, to a lucky
local estate agent.
Well a decade later all the euphoria has evaporated.
Instead of a bright beachside future all we have is a squalid eyesore of a
building site with padlocked gates that haven’t been open for years, forlorn
rusting foundations, surrounded by a Berlin Wall covered in angry anti-development
graffiti. There are no signs that work on this dreamland will ever begin again.
Not surprising really. Companies House records show the
developer (now renamed SFP Ventures UK Ltd) to be struggling on the verge of
insolvency. It’s net value is minus £3,500. Anyone you care to ask doesn’t
think SFP will ever secure enough investment to plough ahead. But this isn’t a sad, hard luck story of over-stretched speculators during a recession. Far from it!
This is a story of alleged dodgy dealings, secretive
Swiss Banks, impenetrable offshore companies, collapsing cliffs and biblical
floods. Even if you had taken lots of mind
altering substances, you couldn’t possibly have made this stuff up!
So let me try to shed a little light on this incredibly
complex, twisting and turning plot. First
who are the developers? Well they were originally called SFP Venture Partners Ltd,
an offshore company registered in the British Virgin Islands (BVI).
It was owned by a parent Company SFP Services Inc. which was also registered in
the BVI. Both Companies banked with Swiss Bank SPB. Around 2006 SFP Venture Partners transformed
itself into SPF Ventures UK Ltd which unlike the other SFPs is registered at
Companies House.
So who owns these companies? Well SFP
Ventures UK Ltd is owned by Mr Shaun Patrick Keegan who also owns a host of what
appear to be dormant property related companies, and who is also a Director of
Peterborough United Football Club – well I guess someone has to be!
But what about the other offshore SFP brothers and
sisters? As a recent BBC Panorama investigation revealed it’s virtually impossible
to find out who actually owns offshore companies. But that does not stop
people speculating. Some people "in the know" have suggested to me
in whispered conversations in quite
Thanet bars that these companies might well have links to prominent local
business people, ex-council officers and Lord forbid maybe even the odd ex or
serving local politician. The same people alleged to me that inside information
and political influence may have been used to drive through the Pleasurama deal
with a view to making a killing and splitting the profit.
The only fault with this plan was of course the banking
collapse and world recession which put paid to the alleged conspirators
ambitions of turning a quick buck at public expense. Now not wanting to be
thrown into the debtors prison for losing a slander case, I must say that I am simply
repeating the speculation of others. I don’t have one shred evidence to support
this rather outlandish and improbable explanation.
But hold on! There is some circumstantial evidence which suggests that this conspiracy theory might not be too far fetched. First, the Government spending watchdog, the Audit
Commission, was far from with Thanet Council’s management of the Pleasurama Project in its early days. This
is what they had to say
“The Audit
Commission carried out an investigation in 2001/02 into issues relating to the
Council’s handling of the disposal of the Pleasurama site in Ramsgate. During
the course of the investigation, we identified a number of weaknesses in the
Council’s arrangements which could have had serious repercussions”.
I’m trying to find out from the Audit Commission exactly what these issues were and
what the “serious repercussions”
might have been. Clearly something major was amiss, but what?
Second, it is claimed in Pleasurama advertising
literature that SFP had lots of previous experience in managing similar multi
£million developments in the UK and abroad. This claim has been repeated by SFP
spokesman and Thanet Estate Agent,
Terence Painter on several occasions.
I have spent hours researching this claim and can tell
you that as far I can see SFP Ventures UK Ltd
do not appear to have developed any significant building projects in the
UK or anywhere else. I have publicly challenged Mr Painter on more than one
occasion to produce the evidence on SFP Ventures UK Ltd track record as a
developer. He has not done so yet!
Third, a serving Thanet councillor and recent Leader of
the Council is facing charges in the Crown Court related to alleged
fraudulent property dealings. This councillor led Thanet Council's Cabinet when it made some key
decisions about the Pleasurama Project, including a decision in 2009 to keep
SFP as the developer, despite senior Council officials strongly recommending that the
SFP be sacked for non-compliance with the development agreement.
So there you have it folks! A company linked to secretive
offshores outfits, which appears to have no previous experience, is appointed
to manage a £22million prestige project
in circumstances which led to an Audit Commission investigation. When Council
officials later expressed their concerns about the performance of this company
and proposed that they be sacked, this was overruled by a Cabinet led by a
councillor now facing very serious charges of misconduct relating to property
deals.
All this smells rather fishy to me. I can perfectly understand
why people are highly suspicious and developing conspiracy theories which might
or might not be true.
But wait there’s more!
Over a year ago SFP approached the Council to ask for its
development agreement to be re-negotiated. They said they were having
difficulty raising investment to move the project forward and it would be
enormously helpful if the Council would sell them the freehold of the site for
the knockdown price of £3.3.million BEFORE the building work is completed.
All very strange. Why would they need the freehold up
front when they already have a 199 year leasehold and the promise of the freehold on completion
of the project. Being a simple minded Councillor I can only see one reason for
wanting a cheap freehold before you begin work.
In my opinion, the Council rather foolishly agreed to
this proposal on the proviso that SFP provides verifiable evidence that it has
sufficient investment to complete the flats and the hotel. Well 12 months down
the road and SFP has still not provided any evidence to show it has the finance
to complete the work it promised to do a decade ago.
I am a simple and straightforward man (something to do with
coming from Yorkshire I fear) and as far as I am concerned conspiracy or no
conspiracy, recession or no recession, 10 years is plenty long enough to have completed
Pleasurama. Especially if SFP is the successful
development company it claims to be.
With this mind it’s time for Thanet Council to seek
expert legal advice on how it can terminate its agreement with SFP and take
back this valuable plot of public land. And pleased and excited that hundreds
of Ramsgate residents are now getting together to force the ruling Labour Group
to sack SFP for a wasted decade of inaction.
(this is only part 1. I will write another post on the
flood risk and the cliff face issues)
Ian