Ray Mallon ‘advised developer and lobbied MP’ over Teesworks

A former Middlesbrough mayor, Ray Mallon, has advised one of the developers behind Teesworks about the project. Mr Mallon stressed "I am not on the payroll of Teesworks or STDC, and I never have been."

'Robocop' Ray Mallon, who owns firm Reverso Consultancy, also lobbied Middlesbrough^[1] MP Andy McDonald^[2] to visit the site and attend briefings. The Stockton-born politician stepped down as mayor in 2015 after 13 years in the job.

Teesworks^[3] has been in the headlines recently and an investigation was launched following corruption claims, though a government spokesperson has said they had not seen any evidence of corruption, wrongdoing, or illegality. A panel has been appointed^[4] by Levelling Up Secretary Michael Gove to look into the concerns raised, however, Labour^[5] was quick to question its impartiality, branding it “handpicked”^[6].

Mr Mallon was first elected mayor when he took office in 2002 and was subsequently twice re-elected. He was previously suspended from Cleveland Police^[8] in 1997 as part of the long-running Operation Lancet inquiry.

He later left the force, having admitted misconduct, in order to run as mayor. After stepping down from the council, Mr Mallon was soon hired as a non-executive director^[9] by Teesworks developer Chris Musgrave to defend the controversial Manston Airport scheme in Kent.

The former mayor, who is a long-standing advisor to Mr Musgrave, was tasked with winning public support for proposals to build houses, business buildings and leisure facilities on the airport site.

Speaking of his involvement with Teesworks, Mr Mallon said: “I have worked with Chris Musgrave for the past eight years on a range of projects all over the country. I am not on the payroll of Teesworks or STDC, and I never have been. I have a close relationship with Chris Musgrave, and of course, we have spoken about Teesworks since he got involved in late 2019.”

The former mayor went on to criticise Mr McDonald for claiming there was “industrial-scale corruption” at the site, claiming his words were “misguided in the extreme” and intended to derail Teesworks. He added: “I know Andy well, and it is common knowledge that I hold him in high regard, but on this occasion, he is completely wrong, and I am surprised at the language he has chosen to use.

"If he had accepted my two invitations to visit the site and take briefings, then he would have had some idea of the complex nature of the commercial deal between STDC and Chris Musgrave and Martin Corney, as well as the direction of travel of the site, but he chose to ignore my requests.

"The ‘corruption’ allegations have had a serious effect upon the integrity of Teesworks and it’s obvious that business confidence has been dented, with some international companies, destined for Teesside, now considering other locations within the UK and abroad. Chris Musgrave is building the Teesworks site, but Andy McDonald wants to knock it down - that’s the sad reality."

Mr McDonald suggested that those questioning where the evidence was following his corruption claims should read his speech from the House of Commons on June 7. He went on to add: “My purpose is not as intimated by Mr Mallon, but it is to hold people to account for the use of hundreds of millions of pounds taxpayers' money and to protect the interests of the public of Teesside.

“It is wrong to say I have ignored invitations to visit the site. I have been given a comprehensive tour by Paul Booth, who was at that time, leading the South Tees Development Corporation. Mayor Houchen also invited me on a subsequent occasion, but he had to cancel at short notice. I make absolutely no complaint about that as we both have busy diaries, and these things happen. In any event, I'll be on the site on Monday with the Business and Trade Select Committee.

“As for the slur about me wanting to "knock it down": I hold Ray Mallon in high regard and whilst there may be fundamental disagreements about how all this business has been conducted, to imply that I don't want to see the South Tees Industrial renaissance site fully and successfully realised is simply untrue and extremely disappointing.”

Concerns were raised about Teesworks at the start of 2022 after a share transfer saw companies owned by Martin Corney and Mr Musgrave – JC Musgrave Capital, Northern Land Management Ltd, and DCS Industrial Limited – increase their Teesworks Ltd shares from 50% to 90%^[10], leaving the STDC with 10%, rather than the 50% it had held before.

At the time, Stockton^[11] North MP Alex Cunningham said the area was seeing “dodgy deals” but Mr Houchen said the deal removed the liabilities^[12] for the site from the taxpayer and allowed the freeport to secure hundreds of millions of pounds of private cash.

References

1. ^{^} Middlesbrough (www.gazettelive.co.uk)
2. ^{^} Andy McDonald (www.gazettelive.co.uk)
3. ^{^} Teesworks (www.gazettelive.co.uk)
4. ^{^} A panel has been appointed (www.gazettelive.co.uk)
5. ^{^} Labour (www.gazettelive.co.uk)
6. ^{^} branding it “handpicked” (www.gazettelive.co.uk)
7. ^{^} Teesside 'sticks out like a sore thumb' with health inequality, with 'unavoidable cost' of strikes (www.gazettelive.co.uk)
8. ^{^} Cleveland Police (www.gazettelive.co.uk)
9. ^{^} Mr Mallon was soon hired as a non-executive director (www.gazettelive.co.uk)
10. ^{^} increase their Teesworks Ltd shares from 50% to 90% (www.gazettelive.co.uk)
11. ^{^} Stockton (www.gazettelive.co.uk)
12. ^{^} Mr Houchen said the deal removed the liabilities (www.gazettelive.co.uk)