Cheap land sale alerted trust to 'bribe'

1:20pm Thursday 4th September 2008

Concerned health bosses set up an inquiry into the way hospital land was sold after their planning chief retired.

Part of the former Hellingly Hospital site near Hailsham was sold to housebuilders Gleesons in 1998 for £2.2 millon.

The land was said to be worth up to £3.7 million on the open market at the time the deal was done.

Health trust director Noel Primrose and land consultant Peter Harrison are accused of plotting the cut-price sale.

Primrose, 70, is accused of receiving a £21,000 bribe from Harrison to ensure that the deal went through.

An investigation into the sale was set up by Eastbourne and County Healthcare NHS Trust after Primrose retired as its director of planning in 2000.

Kevin Dent, prosecuting, told a jury at Hove Crown Court yesterday: “The trust had concerns about the sale and brought their own civil action in connection with it in 2004.

“The action was settled with Gleesons agreeing to pay more money than they had for the site.

“Harrison agreed to relinquish his interest in the site for a payment of £110,000.

“Gleesons later sold the site to another building developer for a profit.”

Mr Dent has already told the jury that Primrose had a duty to obtain the best possible price for the trust for the land.

The defendant is accused of failing to keep the trust board fully informed of negotiations with Hellingly Hospital Developments Ltd, the firm set up by Harrison to handle the deal.

Primrose is said to have tried to put other developers off by saying two medium secure units for psychiatric patients would stay on part of the site.

Mr Dent said that Primrose denied receiving any payments from Harrison when questioned about the sale in December 2004.

The payment of the £21,000 “kickback” did not emerge until three months later, he said.

Mr Dent added: “Mr Primrose again denied that he had been paid by Peter Harrison.

“He said the money was an arrangement between two friends over an endowment policy he had sold to Harrison.”

Accountant Michael Bell said Harrison’s company accounts showed £21,000 had been paid to Primrose for consultancy services.

Primrose, of Brook House, Wartling, near Hailsham, and Harrison, 68, of Oakworth, West Yorkshire, deny conspiracy to defraud the trust between 1996 and 2000.

The trial continues.

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