Millionaire plans to sue Ally Pally (From Haringey Independent)

Millionaire plans to sue Ally Pally

9:24am Friday 26th September 2008 in News By Charley Gray

Uncertain future: the charitable trust that runs Alexandra Palace could be sued by the firm which had planned to turn it into a leisure complex

Alexandra Palace could face another legal battle as the millionaire tycoon who fought to take it over plans to sue.

The boss of leisure company Firoka confirmed legal action is “in the pipeline” against Alexandra Palace Charitable Trust, following weeks of rumours triggered when his firm pulled out of the deal to develop the site last month.

Millionaire Firoz Kassam first won the bid to turn Alexandra Palace into a leisure complex, equipped with casino and hotel, in November 2006.

Since then the deal has been plagued by delays, including a High Court battle last October, which quashed Firoka’s lease with the trust.

Mr Kassam said: “The matter is in the hands of my solicitor. It is not appropriate for me to comment further at this stage.”

Jacob O’Callaghan, of Save Ally Pally, who provoked last year’s law suit, said: “I am not surprised really. It’s another part of the whole mess. What prospects Firoka has I don’t know.

“Hopefully the trust has made provisions for this already — I hope it is insured. Certainly the trust should not suffer from the alleged misdeeds of the trustees.”

The trust’s PR company said it had not received a formal claim for damages but did not deny legal talks were ongoing.

The news comes as the board of trustees called an emergency meeting, due to be held today, to discuss the damning findings of an independent rev-iew into recent decisions.

The report, published this week, criticises the decision to strike a second deal with Firoka, giving it a licence to operate from the buildings and run the ice-rink.

Findings reveal the licence, granted in May 2007, was an attempt to keep prospective owner Firoka interested in its bid to redevelop the Palace, a project which had been repeatedly postponed since November 2006.

But the report states “no justification” for this deal was produced and the financial consequences were not considered.

The review, by independent auditor Martin Walklate on behalf of Haringey Council, also found: m The report on the matter was hurriedly produced m It offered no real alternative structures m It gave no real financial information m Officers had no authority to sign the licence m Recommendations were ambiguous m The licence was signed without any form of final legal approval Now critics are calling for those involved to take responsibility for the findings.

Liberal Democrat leader, Councillor Robert Gorrie, is calling for the resignation of former trust chair and cabinet member Councillor Charles Adje, who was criticised in the report for not briefing trust staff and was named as the main advocate for signing up to a partnership with Firoka.

Mr Gorrie said: “It’s clear that Mr Adje must be removed as soon as possible as the borough’s finance chief. There are many damning revelations in the report, but suggestions Mr Adje was rushing this disastrous process forward without proper procedures in place is absolutely scandalous.

“This incompetence has cost Haringey’s taxpayers millions of pounds.”

Save Ally Pally campaigner Clive Carter said: “Charles Adje is just one of a number of people who should go. There needs to be some punishment of people who are so reckless. We will settle for nothing less than a fully independent board of trustees.”

Mr Adje insisted he was not to blame, but admitted the future for the Palace was as uncertain as ever.

He said: “I don’t think it’s a case of blaming anyone. In my view the decision was reached collectively by the board. No one is any the wiser as to where we go now.”

A spokeswoman for the Palace trust said it had produced an action plan to address the issues raised in the report, which will be considered by trustees on Friday.