Education authorities in Northern Ireland sold land to the private sector at a shortfall of £4m, the Northern Ireland Audit Office has revealed. A report published by auditor general, John Dowdall, highlighted concerns over the transfer of surplus land to the private sector in four of the five education PFI pathfinder contracts. Despite £23m being generated from the transfers, and a further £3.8m secured through clawback clauses built into the contracts, Mr Dowdall concluded the public sector ‘could have done more to secure value for money'. The report identified some key areas for change. According to NIAO, a contributory factor to the shortfall was the absence of up-to-date land valuations, prior to contract signature. It also stated that disposal through public auction might have provided a ‘better measure of market value', and for major projects, at least two independent valuations should be obtained. Mr Dowdall also emphasised the need for public bodies to have in place controls to protect their future interests. Clawback arrangements were in place in the case of the pathfinder projects, but NIAO considered they were ‘not fully effective'.
