NORTHWOOD House trustees are threatening to sue the Isle of Wight Council and have accused it of holding functions at the house which were not paid for, giving itself discounts on other functions and withholding proper financial accounts from the trustees.
Their comments came after the Isle of Wight Council decided to press ahead with their plan to hand over all management and running costs for the house to the trustees and move all its offices by September 30.
Trustees had asked for a report to the cabinet to be deferred for 14 days but this was refused and the paper was put before the meeting on Tuesday.
This led the trustees to submit their own response to the council, highlighting their concerns, particularly over the authority’s financial administration of the house. This did not form part of the cabinet discussion.
In a statement after Tuesday’s cabinet meeting, Ann Thwaites, chairman of Northwood House Management Trustees, said: "The trustees must now continue to seek full clarification, explanation and disclosure of income and expenditure since the Isle of Wight Council became custodian trustee in 2002, information which the trustees have been seeking for several years."
She said they would continue to work hard to preserve the house and grounds.
The trustees’ report accuses the authority of acting in breach of its duty as custodian trustee, saying it has dealt with the trust’s money in a manner inconsistent with the purpose of the trust and failed to provide proper and transparent accounts.
It said they had evidence that during Cowes Week, the council used trust monies for the purposes of the Isle of Wight Council’s own entertainment by holding functions at the house which it did not pay for.
The trustees also claim the council awarded itself discounts on other functions held at the house at other times, without the agreement or knowledge of the management trustees.
The letter, which the County Press has seen, warns: "It is not the wish of the trustees to have to engage in litigation with IWC but unless a transparent approach is taken by IWC, without the current level of obfuscation, there would seem to be a high probability that legal action is a route the trustees will be forced to have to take."
Speaking at the meeting, council leader Cllr David Pugh said the authority did not accept it had breached its duty.
In a statement after the meeting, he said: "We will be writing to the trustees in response to the points raised in their letter.
"The cabinet decision this week was taken in the interests of council taxpayers. We cannot justify, particularly in the current climate and when set against our other priorities, continuing to spend large sums of public money on a building that we do not own and for which we have no responsibility.
"We will, however, continue to support the trustees in their efforts to secure a viable future for Northwood House."
Reporter:
martinn@iwcpmail.co.uk