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American company RiverOak investigated over Manston airport buyout

By: Paul Francis pfrancis@thekmgroup.co.uk

Published: 00:04, 14 July 2015

Thanet council is set to appoint lawyers to investigate the finances of an American company that wants to be its partner in a forced buyout of the Manston airport site.

A report due to be discussed by the authority’s Ukip cabinet tonight discloses that three law firms have been approached to advise how much it would cost to examine the financial credentials of RiverOak.

The work is expected to cost the taxpayer at least £10,000 and the bill could rise further as the council says it may need extra advice from accountants and specialist lawyers.

Manston airport when it was open. Picture: Simon Burchett

RiverOak has said it would meet all the costs of a CPO, but only from the point at which it becomes the council’s partner.

Even if the decision is agreed by the cabinet tonight, it is likely to be several months before the council can reach a position where it can decide to go for a compulsory purchase order.

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UKIP council leader Cllr Chris Wells said the authority was taking sensible steps to satisfy itself that Riveroak was a viable business.

Mr Wells said: “It is in my opinion what the council [under Labour] should have done in the first place.”

Cllr Chris Wells

RiverOak recently met with council officials and Mr Wells when the company presented further information about its finances.

The report to cabinet says three major law firms have been approached to bid for the work.

This would include assessing what information the council would need to satisfy itself RiverOak had “sufficient financial resources and standing” to indemnify the council in any CPO (Complusory Purchase Order).

Meanwhile, Cllr Wells has visited Wynyard Park in Teeside, which is owned by the two businessmen who bought Manston Airport.

‘I had some questions around their finances to which they provided answers.” UKIP council leader Cllr Chris Wells

And in another development, Kent county councillors will be urged to back the campaign to re-open Manston as an airport this week.

The Ukip opposition group at KCC has tabled a proposal that commits the authority to supporting the on-going efforts to save Manston.

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It will call on KCC to “fully support” the campaign saying it is imperative the council shows “absolute support to both reinstate and operate Manston as an airport.”

It comes after a declaration at the last full council meeting by Conservative leader Cllr Paul Carter that he was unwilling to give an open-ended commitment as he had not seen a viable business plan from the American consortium RiverOak.

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