An attempt by Borders MSP Christine Grahame to penetrate the thick veil of secrecy which has blocked the disclosure of the 'true' value of Lowood Estate - purchased by Scottish Borders Council for £9.6 million - has failed.
Meanwhile Audit Scotland, the public sector's financial watchdog, and external auditor of SBC has accepted some of the issues raised with it in written objections concerning the council's book-keeping "may be considered valid".
Ms Grahame, the Scottish National Party MSP for Midlothian South, Tweeddale and Lauderdale, asked the Valuation Office Agency (VoA) for the District Valuer's report on Lowood which was handed to the Borders local authority before it finalised a deal for 110 acres and nine properties on the estate last December. The price paid was above the DV's figure.
In her Freedom of Information request to the English-based VoA Ms Grahame wrote: "Many constituents have raised concerns about the purchase price [of Lowood Estate].
"I have read the JLL (consultants) report and the heavily redacted Ryden (council's own consultants) report which raise many questions about the financial robustness of the purchase price.
"It is my understanding that councillors have had sight of the DV's report but under strict conditions that they do not make public its contents. I find this quite frankly unacceptable as there cannot be scrutiny without full disclosure and that in my view it is in the public interest that the contents of that report be published.
"If you are unable to release a copy of that report to me, please consider this as a FOI request and I also request release of all communications - written, electronic, telephone, notes, minutes of meetings and diary entries between you and Scottish Borders Council, its elected representatives, officials and third parties concerning the proposed and subsequent purchase of Lowood Estate".
But the VoA, which is supposed to be a FOI compliant public body under English FOI law, refused to even confirm it held the information requested by Ms Grahame. The agency issued a similar refusal to a private individual who asked for the DV's report earlier this year.
VoA's FOI team told Ms Grahame: "Section 44 (2) of FOIA says we cannot confirm whether or not we hold the information you have requested as doing so is not allowed by another Act. Requested information, if it were held, cannot be provided where the following statements are true:
"The information where held is for a function of HM REvenues & Customs (HMRC). The VoA is an executive agency of HMRC, the information you have requested is held for our function of providing property valuations.
"The information, where held, relates to a person who is identified, Identification can be direct or by deduction, and the term 'person' includes legal entities such as companies, trusts and charities, as well as individuals".
In an email to the MSP the FOI team state: "You mentioned that this topic is of interest to the public. However, I cannot take this into account when considering whether or not we can provide the information under the FOIA, as the exemption in section 44 applies. This exemption is absolute, which means there is no requirement for the public interest to be considered.
"Section 44 of the FOIA says when we are considering a
request, we must take into account any other prohibitions on disclosure. In this case, the Commissioners for Revenue
and Customs Act (CRCA) applies. CRCA says that we must not disclose information
when a person can either be identified, or their identity could be deduced,
from the disclosure. Unlawful disclosure by a VOA member of staff would
constitute a punishable offence under section 19 of CRCA. In this case, even
confirming whether or not information is held is considered disclosive."
At least two of the four written objections to the council's accounts which have been lodged with Audit Scotland refer directly to the Lowood purchase which totals £11 million when fees, taxes and other charges are included.
In its response to one objector Audit Scotland says: "The
external auditors of the council have now considered the points you raise. It
is their view that that the accounting treatment of the purchase of Lowood
Estate (i.e. valuation and disclosure) may be considered as a valid subject of
objection under the terms of the Local Government (Scotland) Act 1973 (the
Act)."
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