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Hans J Marter
9 May, 2008
TRUSTEES on Shetland Charitable Trust acted in a proper way when
they took over wind farm developer Viking Energy from the council
last year, according to the latest legal advice.
Simon Mackintosh, of law firm Turcan Connell, told a meeting of the
trust yesterday (Thursday) that there had been no conflict of
interest as long as trustees had satisfied themselves that they had
put the interests of the trust first.
In September 2007 the trust decided by a single vote to buy the
council's shares in Viking Energy for £900, thereby potentially
relieving the local authority of a £3 million investment budget
needed to bring a proposed 554 megawatt windfarm to the planning
stage.
It had been argued that the 22 councillors sitting as trustees on
the charitable trust should have declared an interest and not have
voted on the transfer.
Questioned on the issue by independent trustee John Scott yesterday,
Mr Mackintosh said: "I don't think that relieving the SIC of an
expenditure |
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is a problem, as long
as the trustees are convinced that it is in the best interest of the
trust."
Further quizzed by Mr Scott, who argued that this was a "high risk
expenditure" that no bank would have taken on, Mr Macintosh replied
that the trust had to make sure that the risks it is taking are
properly balanced.
"The fact that it is charitable money does not mean that you cannot
indulge in some investments that are more risky than others," he
said.
The development of the Viking Energy wind farm has so far cost £1.4
million, the trust's interim manager Jeff Goddard revealed at the
meeting.
This expenditure will sit with the council until the charitable
trust agrees to set a budget for the development at one of its
future meetings. |
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