This tale of apparent corruption was highlighted by Private Eye earlier in the year but is being picked up more widely now by the FT and Sky.
It seems the South Tees Development Corporation transferred a 90% stake to two developers without a public tender. Those developers have taken out £45m in dividends but not invested in the redevelopment project themselves. The Development Corporation is chaired by the Conservative Mayor, Ben Houchen.
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Reports that private developers came to own 90% of the shares in the project without a public tender are a key concern raised by Labour.
Ms Nandy also highlights claims that "developers have already secured £45m in dividends despite failing to invest any of their own money in the project".
Labour states the taxpayer has invested "more than £260m, in addition to providing a public loan worth more than £100m".
After the steel plant in the Tees estuary closed in 2015, a company was set up to manage the regeneration of the sizeable industrial site.
Mr Houchen is the chair of the board of the South Tees Development Corporation.
It is the ownership of shares in this company which Ms Nandy raised in her letter to the NAO.
Ms Nandy said: "[The FT] report raises very serious questions. The government has handed over hundreds of millions of pounds of taxpayers' money to a project that is now 90% in private ownership, while the private owners appear not to have put in a penny and pocketed millions.
"There seems to have been no scrutiny or basic oversight from ministers. Instead they've simply signed off on this deal and walked away.
"There must be a comprehensive, independent investigation to ensure the public interest is protected."
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https://www.msn.com/en-gb/news/uknew...bd9d388ed&ei=9
https://www.ft.com/content/c5c6a3f7-...0-d7088470cbb2