Northern Powerhouse + Cash Only/Investor Chaos

The request was refused by Department for International Trade.

Dear Department for International Trade,

According to the Department for International Trade, 'The UK continues to attract record levels of inward investment and remains extremely attractive to foreign investors.' In fact George Osborne went to China with the Mayor of Liverpool, Joe Anderson to promote the 'Northern Pitchbook', with the £200 million New Chinatown development in Liverpool being the 'centerpiece' development
In terms of Cash Only/Investor development investments, this is fast becoming a national scandel, which will have a very negative affect on UK/Chinese relations, and will seriously limit inward investment into the Northern Powerhouse.
FACT 1 - Record numbers of Chinese and Hong Kong investors have been putting their money into northern developments, especially student accommodation and city apartments .Investors have to put 75% cash up front and the developments are usually 'off-plan'. This means, in many cases, that not even the foundations have been built.
FACT 2 - This has attracted the very 'worst!' of developers, which can be seen from the following information:
[1] Angelgate Development- Manchester - which was developed by Pinnacle MC Global and went into liquidation in April 2015, leaving the development unfinished [foundations only]. By August, the developer told buyers the project had been “seriously undervalued” by around £14 million (HK$140.04 million), requiring additional funding in order to complete. The developer gave Angelgate [mainly Chinese/Hong Kong] investors two options: contribute more money to complete the project, or handle the construction themselves.According to a solicitor’s update from Pinnacle, a total of £13.2 million went to commissions and fees, with £7.9 million spent on “overheads, running costs and profits. [this begs the question: how can developers take profits when the development hasn't actually been built]”An Angelgate investor said an estimated £32 million (HK$330 million) had been paid in deposit money from the buyers in the steering committee and they had filed reports with local police and fraud action groups. The Angelgate project was a scam and investors felt helpless, she said. One of the men involved in this development, Tony Freeman, has been arrested by the police.
[2] Investors from around the world say they will never put money into Liverpool again after their experience of dealing with a city “landlord from hell”. They have been bombarding council chief executive Ged Fitzgerald [this man has also been arrested by the police for suspicion of conspiring to pervert the course of justice and intimidating witnesses.]with complaints about Nigel Russell, who runs a number of student properties around Liverpool. Investors say that if the council had carried out Due Diligence then they and fellow investors from as far away as Canada, Brunei, Saudi Arabia and the Philippines may not have had to endure what they called years of hell. They had to endure months without any payments, and some had put their life savings into buying units from Mr Russell. Nigel Russell has been arrested by the police
[3] £200 million - New Chinatown development - The companies involved in this development were given 'preferred developer 'status by Liverpool City Council without any proper Due Diligence being carried out. There was significant investment by Chinese and Hong Kong investors. With only the foundations completed, two of the construction companies involved have gone into liquidation and the development is at a halt.

[4] Baltic House - The companies involved in this development are on the point of liquidation. There was significant investment by Chinese and Hong Kong investors. With only the foundations and a small amount of the construction completed this project is at a halt.
[5] The Paramount - There was significant investment by Chinese and Hong Kong investors. The development is only half built with 140 Chinese students living in the built half. This building is probably dangerous and building is at a halt

[5]Berry House - There was significant investment by Chinese and Hong Kong investors. The company involved is close to liquidation-no building work completed at all.

[6] North Point - There was significant investment by Chinese and Hong Kong investors. The company involved is close to liquidation-very little building work completed .

[7] St James Court - sold to investors, but absolutely no building works even started

[8]Metalworks - sold to investors, but absolutely no building works even started

[9] Eldon Grove - sold to investors, but absolutely no building works even started

It is clear from the above information that Manchester and Liverpool City Councils [as just examples] are not carrying out Due Diligence and are leaving investors prey to criminals. It is quite evident that this is going to lead to a significant reduction in the number of foreign investors in the North West [Northern Powerhouse] and a deterioration in the Chinese/UK economic relationship.
FOI request:
[1] There is an urgent need for a Public Inquiry/Panel into this appalling situation - how can the process be initiated?
[2] There is an urgent need for a meeting with Liam Fox - how can this be arranged?
[3] Please supply all information that explains how the Northern Powerhouse has become an entre for so many criminal organisations to take gross financial advantage of foreign and domestic investors WITHOUT ANY INTERVENTION BY THE GOVERNMENT

[Urgent action is needed as the national press is now investigating these matters.

Yours faithfully,

Josie Mullen

on behalf of FOI Requests,

DIT ref: FOI2017/17934

Dear Josie Mullen

Thank you for your request for information which was received on 12th
August. On behalf of the Department for International Trade (DIT) your
request has been passed on to the appropriate official at DIT to process.

Your request is being considered under the terms of the Freedom of
Information Act 2000 and DIT will reply at the latest by 11th September.

If you have any queries about this email, please contact the Information
Rights Unit at BEIS. Please remember to quote the reference number above
in any future communications.

Kind regards,

Information Rights Unit

Information Rights Unit | Department for Business, Energy and Industrial
Strategy | 1 Victoria Street, London, SW1H 0ET | www.gov.uk/beis |
[email address] |

FOI Requests,

1 Attachment

Dear Josie Mullen,

 

Please see the attached reply to your FOI request (FOI2017/17934).

 

If you have any queries, please contact the Information Rights Unit.

 

Please remember to quote the reference number above in any future
communications.

 

Kind regards,

 

Information Rights Unit

Department for Business, Energy and Industrial Strategy

1 Victoria Street

London

SW1H 0ET

Email: [1][email address]

 

 

References

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1. mailto:[email address]

Dear Department for International Trade,

Please pass this on to the person who conducts Freedom of Information reviews.

I am writing to request an internal review of Department for International Trade's handling of my FOI request 'Northern Powerhouse + Cash Only/Investor Chaos'.
[1] I find the response to my FOI request totally dismissive and in no way relevant to the information I put in my FOI request
[2] I was not requesting information on the 'off-plan' allegedly fraudulent developments that have divested Chinese/Hong Kong/UK investors of millions of pounds. I was giving you information I wish you to act upon.
[3] I stated that criminal developers were using the Northern Powerhouse and the Pitchbook for the north [Chinatown development] to con investors out of millions of pounds for developments that they have no intention of actually building.
[4] George Osborne [who was a Government minister at the time] and the Mayor of Liverpool went to China to promote these developments along with the Lord Mayor of Liverpool. Chinese and Hong Kong citizens invested in these Liverpool/Manchester developments because of the backing by George Osborne, Mayor of Liverpool etc
[5] The fact that you, the Government have been informed about gross lack of Due Diligence by Liverpool/Manchester City Councils [example only] and criminal activities of developers which is bringing the Northern Powerhouse into total disrepute....and yet you have decided to ignore information relating to massive criminal activity, and instead, respond with a trite statement about your support for the Northern Powerhouse is totally unacceptable and possibly illegal. Since I wrote my initial FOI to you the following individuals who were involved either in these developments or employed by Liverpool City Council have been arrested:
[1] Ged Fitzgerald - CEO of Liverpool City Council - on bail for intimidating witnesses and perverting the course of justice
[2] David McIlhinney - former Director of Liverpool Direct - - on bail for intimidating witnesses and perverting the course of justice
[3] Nigel Freeman - developer in Liverpool - on bail for 4 counts of fraud [previous criminal history in America and the UK
[4] Tony Freeman - developer/promoter in Liverpool and Manchester - on police bail for developer fraud [long criminal history]
[5] Lee James Spencer - developer in Liverpool and other places - up before the courts recently for perverting the course of justice [also banned by Companies House for 10 years ]
[6] Samuel Beilin -Represents Liverpool developers - previous criminal history, involved in company liquidations owing millions of pounds, up before the courts recently for perverting the course of justice
As I said, my FOI request was actually completely ignored. I asked, based on the information that I had supplied, [tip of the iceberg] what the Government intended to do to stop the so-called Northern Powerhouse being used by criminals to divest people of millions of pounds

[ GIVE DETAILS ABOUT YOUR COMPLAINT HERE ]

A full history of my FOI request and all correspondence is available on the Internet at this address: https://www.whatdotheyknow.com/request/n...

Yours faithfully,

Josie Mullen

on behalf of FOI Requests,

BEIS ref: FOI2017/17934

Dear Josie Mullen

Thank you for your request for an internal review which was received on
26th September. Your request has been passed on to the appropriate
official at the Department for International Trade (DIT) to deal with.

In line with the Information Commissioners guidance, internal reviews
should be responded to within 20 working days unless they are complex, in
which case a response should be sent within 40 working days. Please be
aware that this does not include weekends and bank holidays. The
Department aims to respond to requests for internal reviews as quickly as
possible. We hope to be in contact with you again shortly with a decision
on your request.

If you have any queries about this email, please contact the Information
Rights Unit at BEIS. Please remember to quote the reference number above
in any future communications.

Kind regards,
Information Rights Unit

Information Rights Unit | Department for Business, Energy and Industrial
Strategy | 1 Victoria Street, London, SW1H 0ET | www.gov.uk/beis |
[email address] |

FOI Requests,

1 Attachment

Dear Ms Mullen,

 

Please see the attached reply to your request for an internal review
(FOI2017/17934).

 

If you have any queries, please contact the Information Rights Unit.

 

Please remember to quote the reference number above in any future
communications.

 

Kind regards,

 

Information Rights Unit

Department for Business, Energy and Industrial Strategy

1 Victoria Street

London

SW1H 0ET

Email: [1][email address]

 

References

Visible links
1. mailto:[email address]

Dear FOI Requests,
Your Internal Review is a joke........just wait until journalists get hold of your response. If widespread criminality and the loss of millions of pounds to mainly Chinese investors does not interest you......then perhaps its time Mr Liam Fox and those people who were involved in this response stood down/resigned....looked elsewhere for a job where ethics, morality and the rule of law doesn't matter.......watch this space.....I intend to make a documentary out of this.....no holds barred

Yours sincerely,

Josie Mullen