LDA Statement On Evening Standard Allegations

The London Development Agency (LDA) provided funds to the South London Green Badge Taxi School between 2001 and 2002. No further funding has been provided by the LDA since January 2002.

The LDA investigated concerns raised about the School in 2006, assisted by its auditors KPMG. This file was passed to a leading barrister to determine the LDA’s further action. These findings were disclosed to the complainant and Kate Hoey MP.

The Evening Standard's account of these findings is completely misleading and does not reflect the full legal advice provided, which was:

"Whilst I have concerns about Green Badge’s probity, I think that there is insufficient evidence to justify a referral the case to the police and asking that they investigate. The LDA may wish to consider raising with the Inland Revenue the tax treatment of the income generated from the taxi rental."

Nonetheless, to ensure that this matter was completely dealt with, the LDA referred it to the Metropolitan Police and - as suggested by the legal advice - HM Revenue and Customs and the Charity Commission.

The Metropolitan Police agreed in November there was not sufficient evidence to justifying further criminal investigation.

These facts show conclusively that - far from ignoring allegations about the Green Badge Taxi School - the LDA investigated them and both our lawyers and the police reached the same conclusion on further action.

The LDA will naturally investigate any new evidence brought forward.

For further media information: please contact Robert Beasley, Acting Head of Media on Tel: 020 7593 8437, Mob: 07790 907568 or email: RobertBeasley@lda.gov.uk