City of Culture to be loaned £1m in public cash by council in move that's 'not without risk'

[rebbonk]

Heads should roll, including Ruanes'!

[dutchman]

City of Culture loan row sees partners end support



Coventry City of Culture Trust's decision to accept a £1m bail-out loan has led to two organisations ending their partnership with it, the BBC has learned

The University of Warwick and Coventry University have both confirmed staff have quit the trust's board.

The universities said they disagreed with the trust's decision to accept the loan from the city council last year.

The trust said it continued to work with both institutions.

Coventry was named UK City of Culture for 2021, attracting millions of pounds in investment.

The city is supposed to fulfil a three-year legacy programme, delivering cultural projects long after holding the title, but since the loan's issue in September, the trust has this year turned to administrators, saying it faces financial difficulty.

Councillors were briefed earlier this month the loan was unlikely to be repaid.

Coventry University's two members of the trust board, Professor Judith Mossman and Olubunmi Adenegan, both resigned over the loan in October, along with Warwick University's board member Professor Simon Swain.

A Warwick University spokesman said: "We did not support additional public money being used to keep the charitable trust going and ended our membership of the board and the audit committee as a result. Two senior colleagues resigned from roles on the City of Culture board and audit committee."

A statement from Coventry University said: "The partnership was ended earlier than expected. We withdrew because having regard to all the relevant factors we could not support the proposal to accept a loan from the council."

Coventry University says it is also owed money by the trust and is taking steps to recover the funds.

Both universities were principal and funding partners and had been expected to remain so as the trust worked to deliver the promised three-year legacy programme.

The trust has cancelled some meetings about commissioning future projects, and there are no events listed beyond this month on the Coventry 2021 website.

It has also emerged that the trust chief executive, Martin Sutherland, will leave his role in the coming weeks, and no replacement has been announced.

[rebbonk]

Rats jumping a sinking ship.

These people are equally culpable for the losses!

[dutchman]

City of Culture Trust's finances probed by watchdog

The Charity Commission has said it is looking into finances at the Coventry City of Culture Trust.

The announcement comes after it was revealed that the group responsible for delivering legacy projects after Coventry's year as City of Culture in 2021 was facing financial difficulty.

The trust is supposed to oversee a three-year programme of events but has held talks with administrators.

The commission said it was currently "assessing information".

"We have opened a compliance case into the Coventry City of Culture regarding financial concerns and are currently assessing information to inform any next steps," a spokesman said.

The Charity Commission is the government body responsible for registering and regulating charities in England and Wales.

It emphasised it had made no finding of wrongdoing and that a gap between a charity's expenditure and income was not indicative of its financial situation.

Coventry City Council has previously said the city "needs" the legacy programme and that it was "obviously concerned" that the trust was in talks with administrators.

The trust has cancelled some meetings about commissioning future projects, and there are no events listed beyond this month on the Coventry 2021 website.

[dutchman]

Coventry City of Culture Trust calls in administrators

The trust set up to run legacy projects following Coventry's year as UK City of Culture in 2021 has gone into administration.

The board of trustees said on Tuesday the trust had failed to find solutions to its financial challenges.

The Coventry City of Culture Trust is supposed to oversee a three-year programme of projects, but had to ask the council for a £1m loan in 2022.

It said it regretted administration's impact on staff and partners.

The administrators, from Armstrong Watson, confirmed all trust staff roles had been made redundant.

Dozens of jobs are thought to have been lost as a result.

The trust said it had worked to try to protect legacy funding "for the city and its cultural organisations".

Up to 10 people have left their positions as directors of the trust in the past 12 months, according to Companies House records. There are currently eight board members in place, with none from the council.

The trust said last week that despite the situation, it continued to work with partners on a variety of initiatives and the city's tenure as City of Culture had attracted millions of pounds in investment.

On Friday, the BBC reported watchdog the Charity Commission was probing the trust's finances.

[dutchman]

The trustees said they believed "Coventry's year as UK City of Culture has had a huge impact on the city and its positive influence will be felt for many, many years to come".

[rebbonk]

Every last councillor who voted to support this organisation (with OUR money) ought to face charges of misfeasance or nonfeasance in public office.

The outcome was obvious to a blind man; our inept, self-serving, councillors need bringing to book.

[rebbonk]

Coventry City Council £1m loan at risk after culture trust goes bust

Coventry City Council £1m loan at risk after culture trust goes bust

A trust set up to promote the cultural life of Coventry following the city's year as UK City of Culture in 2021 has gone into administration putting a £1m council loan at risk.

The Coventry City Council loan to the Coventry City of Culture Trust was aimed at securing the agreed arts and cultural legacy programme through until March 2024.

A council spokesperson said the local authority was ‘disappointed’ at the news that the trust was going into administration and was working with the administrator ‘to secure the best outcome we can.’

The spokesperson added: ‘It is important to remember that so many Coventry people and communities have benefited from the title. The city has also received tens of millions of pounds of additional funding we would not have received without being named UK City of Culture 2021.

‘We will work with partners, including creatives, arts and cultural organisations in the city, to understand what elements of the Trust’s planned legacy programme can be delivered and how we can collectively secure legacy for the city going forward.’

Source: https://www.localgov.co.uk/Coventry-City-Council-1m-loan-at-risk-after-culture-trust-goes-bust-/55722

Absolute fiasco.

[dutchman]

Jobs lost at Coventry City of Culture Trust as it enters administration



Fifty people working for Coventry City of Culture Trust have lost their jobs after it entered administration.

The trust was due to oversee a three-year legacy programme after Coventry's reign as UK City of Culture came to an end in May 2022.

On Tuesday called in administrators after facing weeks of financial insecurity.

The trust said it regretted the effect on staff, with 29 permanent staff and 21 casual workers made redundant.

The Local Democracy Reporting Service said The Reel Store, a permanent digital art gallery, could also close for good.

It was opened in May last year as part of the legacy project and has attracted thousands of visitors.

The gallery will close unless administrators can find a buyer who wants to take on the lease and continue running it.

Since the trust went into administration all of its assets were put up for sale and most of its physical assets are held in The Reel Store.

Administrators from Armstrong Watson were appointed on Tuesday after the board of trustees said they had failed to find solutions to its financial challenges.

[rebbonk]

I hope the trustees are held properly accountable and face the consequences of their inadequacies. I'll not go holding my breath though, the local taxpayer is going to end up picking up the tab!

Hopefully, (again, I'll not hold my breath) the incompetents will be barred from ever being involved in business again.

Mad? Annoyed? You bet I am!