Council buys controversial site for €9.75m

CORK County Council has struck a deal to buy a controversial 20-acre site in North Cork, which is the subject of two probes, saving itself nearly €2 million on the contract it previously signed.

The site hit the headlines last July when it emerged a complaint had been made to the council by Pushkin Developments.

The company alleged two bankers had agreed to buy the site from it for €8m, but even before they had signed on the dotted line they were in negotiations with the local authority to sell it on to them for €11.6m.

The complaint was made two weeks after the council signed the €11.6m deal for the land at Deerpark, Charleville.

The local authority paid a deposit, but refused to pay the balance after receiving the complaint.

In the meantime it started an internal investigation and suspended a senior member of staff.

County manager Maurice Moloney confirmed yesterday that the council had purchased the land, but for €9.75m.

Mr Moloney said the council had sought two independent valuations on the site, which had come in at around €9.4m.

Allowing for a time delay and inflation, he said he considered the €9.75m as “a very, very good deal”.

“We’re very happy with it given current market values. We now own the land, and effectively we have saved the bones of €2m.”

Mr Moloney said the council’s internal inquiry should be completed by next month. It is understood the council official at the centre of the probe remains suspended.

Gardaí have launched a separate inquiry into the allegations, but it is not clear when their probe will be completed, as it only began a few weeks ago.

Claims had been made that the council was offered the land for about 4m three years ago.

However, Mr Moloney said yesterday that council officials “had established clearly that the property was not offered to them”.

He declined to comment further on the internal investigation, or whether the suspended official would shortly return to work. It is understood the man has consistently claimed he did nothing wrong and followed the council’s laid-down procedures to the full.

The council put a dedicated team onto the internal investigation and they have interviewed a number of people and trawled through numerous files of correspondence. Among those questioned are members of staff, auctioneers and developers.

Mr Moloney said the council now intended to use the land to construct houses. It was already zoned for housing development when it was sold by Pushkin Developments.