Friday, May 05, 2017

Dodgy government accounting results in disasters like this

Graniard: How the MoD’s plan to privatise military housing ended in disaster

"In 1996, the Ministry of Defence decided to sell off its housing stock. The financier Guy Hands bought it up in a deal that would make his investors billions – and have catastrophic consequences for both the military and the taxpayer"
The government secured a 'good' deal, but only for 25 years. It sold homes for £1.67bn that are now worth £6.7bn and it has to start paying whatever rent Guy Hands can get away with rather than the much smaller amount that it would cost to run the estate. Similar to the Right to Buy fiasco - fire sale, made worse by paying over the odds for the same service that the asset originally rendered under state ownership

Posted by mombers @ 07:37 AM (1356 views) Add Comment

1 Comment

1. icarus said...

She should have explained how the deal came about that if the spivs retained the original roofs the requirement for them to build 40% affordable housing was waived.

Friday, May 5, 2017 07:31PM Report Comment
 

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