Teesworks inquiry finds no evidence of ‘corruption’, despite ‘transparency’ issues

A report has been published regarding corruption and financial mismanagement surrounding the Teesworks site in Teesside, with it ultimately finding no evidence of wrongdoing despite the inquiry mentioning issues of ‘transparency and oversight’. 

Following public criticism by Middlesbrough Labour MP Andy McDonald of the development’s handling of taxpayer funding, who suggested that the project was being undermined by “truly shocking, industrial-scale corruption”, Levelling Up Secretary Michael Gove ordered an independent review into the issue.

The issue arose after 90 per cent of the shares in Teesworks were reportedly handed out to private companies which had profited significantly from the scheme, despite the project being fuelled by £560m of public sector investment.

The inquiry has found "no evidence to support allegations of corruption or illegality". However, the following was also included: "There are issues of governance and transparency that need to be addressed and a number of decisions taken by the bodies involved do not meet the standards expected when managing public funds."

Middlesbrough Labour MP Andy McDonald had this to say on X (formerly Twitter) regarding the outcome of the inquiry:

“Today the minister trotted out his mists and mirrors about Teesworks. Yet when we get into the meat of it we discover major flaws the report settled on in terms of governance, finance and accountability. They prove how right we were to be concerned. This is going to run and run.”

In contrast, the following statement has been issues by Teesworks Limited:

“We are pleased but not surprised that the Panel Members have found no evidence of corruption or illegality on the part of ourselves or anyone else involved with the Teesworks project - we knew the result from the outset because we knew we had done nothing wrong.

“In essence, Mr McDonald lied to Parliament, trashed our reputations and displayed a complete disregard to the implications of his actions. Due to his smear tactics, his only real success was to lose Teesworks a number of multi-million pound investment deals and 1000s of jobs, including one deal which amounted to £600m and 2,000 jobs alone.”

Tees Valley Mayor Ben Houchen has also made a statement regarding the matter:

“The people of Teesside, Darlington and Hartlepool can welcome this investigation, which sets out in black and white that there is no corruption or illegality at Teesworks.

“The investigation was thorough, wide-ranging, and detailed. It assessed more than 1,400 documents, tens of thousands of pages of material and conducted 45 interviews and I’d like to thank the panel for their hard work and diligence.

“I welcome the recommendations of the panel and my team and I are already working to review the recommendations to improve our processes and procedures in line with the report’s findings.

Finally, we have received a statement issued on behalf of Tees Valley Combined Authority Group CEO Julie Gilhespie:

“We welcome the report into the allegations surrounding STDC, TVCA and Teesworks and the panel’s recommendations, which provide a basis to continue to strengthen our transparency and governance procedures.

“I would like to thank the review panel for their work, carrying out their duties and confirming there has been no corruption or illegality. The panel has shared valuable feedback from which we can learn lessons. The conclusion of this review means we can now move forward in delivering vital investment and jobs for the people of Tees Valley.”

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