£9million of taxpayers’ money went to ‘offshore tax haven’ through Islington Council’s out-sourced housing deals

From PFI article in ISLINGTON GAZETTE this week

Between 2012 and 2018, JLIF which invested in 65 PFI and Public Private Partnership schemes around the world, had pre-tax profits of £526.1m but paid only paid £2.1m (or 0.4pc) in UK tax. Academic and housing campaigner Stuart Hodkinson, whose 2019 work Safe As Houses scrutinies the “corporate greed” of PFI schemes, estimates the total contract value of PFI 1 is £357m, while PFI 2 is said to be worth £421.3m.

Dr Brian Potter, chair of Islington Leaseholders Association, led a campaign to stop the PFI deals in the early 2000s. He argues offshore or tax haven registered companies profiting from PFI deals, while not illegal, is “unethical” and “insidious”. He said: “This is one of the major problems with selling off contacts. Once you have sold the contract you have no control, so there is no quality control – nobody accepts responsibility for anything wrong with the original contract. You’re just left with a money spinning machine just eating money over the years. It was the worst council financing decision.”

Read the full story here

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