Greater Manchester Combined Authority has won a Competition Appeal Tribunal in a case brought by property developer Aubrey Weis, which alleged that loans to residential developer Renaker were “administered corruptly” and that there was a “cosy relationship” between GMCA officers and developers.
The tribunal panel of three said in conclusion that their decision was unanimous and that they were satisfied there was no subsidy paid to Renaker companies, owned by developer Darren Whitaker, by GMCA.
“Underlying the application is an allegation that because of a possible cosy relationship with Mr Whitaker, the Renaker Group was being provided with loans at unduly favourable rates,” the conclusion to the tribunal’s ruling said.
“The Tribunal is satisfied that this is clearly not the case. The 2024 Renaker Loans went through a proper process and the terms and rates considered by persons with significant experience in development loans. The Tribunal has carefully scrutinised all the material and submissions and is satisfied that there was no subsidy in this case,” the ruling found.
In a bullish statement, which curiously doesn’t name the recipient of the Housing Investment Loan Funds, Renaker, the GMCA said: “Today we won on every count, with the Tribunal Chair praising our approach, which has helped deliver 11,000 new homes across Greater Manchester, regenerating brownfield sites at no cost to the taxpayer and generating income which we’ve used for our wider work to tackle the housing crisis.
“Throughout this case there have been flagrant attempts to undermine our reputation through false allegations and insinuations. Today’s judgment should be the final word on the matter. It definitively debunks the false idea that loans were administered corruptly or that there was a cosy relationship between GMCA officers and developers.”
The statement continued to justify the GMCA’s track record on Housing Investment Loan Fund deals which it insists have been offered at market rates and were therefore not a form of subsidy.
“Today’s ruling confirms this. The Tribunal Chair also roundly dismissed the claimant’s suggestion that loans were agreed behind closed doors as ‘rather unreal’. And he recognised our ‘perfectly rational’ process and the robust measures we’ve put in place in administering loans – a process which incorporates independent expert advice.
“Since the Housing Investment Loans Fund was set up in 2015, we have not turned down a single viable scheme and have supported a wide variety of developers and projects – including 38 small loans offered to SME developers. There have been no defaults, with all loans repaid with interest, providing outstanding value for money for taxpayers.
“We’ve reinvested our share of the interest in supporting our housing priorities – including work to bring forward the country’s first Good Landlord Charter and training new housing enforcement officers to drive up standards for renters.
“This judgement completely vindicates the approach we’ve taken. We’re proud of the Housing Investment Loans Fund and the expert team of highly experienced professionals that administers it. We will continue to use the Housing Investment Loans Fund to unlock and accelerate regeneration work in Greater Manchester.”