OXFORD City Council "probably" got the best price when it sold the land on which Oxford United's ground was built but it has been criticised over how it did the deal.

District auditor Andy Burns has been investigating whether the council met its legal duty in getting the proper value for the ten-acre plot at Minchery Farm when it sold it for £1.3m to former United chairman Firoz Kassam in 2001.

A lack of evidence and the passing of time meant Mr Burns could not conclusively prove it did and he has given the Town Hall the benefit of the doubt.

But he has criticised it for its business practices, ruling:

  • Councillors were "not fully appraised of all the financial implications of the deal"
  • There was a failure to get a valuation of the land in the condition in which it was sold
  • The council did not carry out some of the tasks agreed
  • There were poorly written reports
  • Absence of details in minutes over the deal.

Although his criticisms are an "embarrassment", as one councillor put it, his ruling effectively puts the Town Hall in the clear, ending a saga that has been rumbling on since 2001.

Mr Burns said: "It's fair to say the review has taken substantial time to complete because, in my view, evidence available has not been strong. I have been very mindful of the fact the council of today is very different to the council of six years ago.

"...while I can't expressly conclude best consideration has been obtained the weight of evidence is in that favour.

"Based on the information I am satisfied the outcome is, arguably, a reasonable one."

There has never been any suggestion Mr Kassam who sold the club to businessman Nick Merry this year, but maintains ownership of the land acted improperly.

The Kassam land sale issue has proved such a lengthy investigation that Mr Burns did not finish his investigation in time for it to make the city council's annual audit inspection letter, his full-term report on the Town Hall.

A full report on the Kassam deal will be published later this year.

He said he had based his investigations on three questions:

  • Did the council receive the best price for the land?
  • Were there any weaknesses in decision-making?
  • Could any such failures happen again?

And his answers were: Yes although not a categorical yes yes, and less likely to. NB not his exact words, but corr City council leader John Goddard said the investigation had produced "less than wholly precise conclusions".

City councillor Craig Simmons, vice-chairman of the audit and governance committee, added: "The fact this has gone on for so long and the results are inconclusive is an embarrassment for the council.

"The conclusion of the district auditor could have been better, and left a number of unanswered questions."

City council chief executive Caroline Bull said: "This issue is six years old and we are very pleased the district auditor has now concluded his review.

"He is satisfied the price we obtained was reasonable. The decision-making process of the council is much more robust now and his recommendations will help us improve it further."

The land at Minchery Farm was designated for open leisure use when bought by Oxford City Council from Thames Water in the late 1980s.

The question at the heart of the inquiry was: Was it valued as development land when it was sold to Firoka, Firoz Kassam's consortium?

Thames Water said the sale of the land for development contravened a covenant.

It sued the council and won with the council paying £20,000 towards their legal costs.

Negotiations between Firoka and the city council at the time leading up to the land sale were overshadowed by a realistic fear that Oxford United could fold.

Confidential briefings to councillors in the run-up to the sale read: "In view of the perilous state of club finances it now seems unlikely that Oxford United can continue unless Mr Kassam remains involved and buys the club."