A spokesman for Coventry City Council has denied that that Council have done anything with regard to the funds they received from the European Development Fund in 2003.
MEP Nikki Sinclaire had contacted the European Union's Anti Fraud Department over the answers she received and the Council have said in a press statement that there had been a mix up as to what the MEP was on about and apologised for giving out incorrect information.
The press statekment reads:
"There are two separate figures – a grant of £4.75million given to the Council in 2003 by Advantage West Midlands. This was used to fund the purchase of the Arena site. From 2006 onwards the Council received a series of European Regional Development Fund payments that finally amounted to £4.6million. These related to site acquisition and building costs on the overall site, but not for the Arena itself.
"Both of these sums relate to the overall Arena project, which of course also included the delivery of the highly successful Arena Shopping Park.
"The project has created hundreds of jobs for local people and provided a much needed boost to the local economy.
"All of the transactions referred to by Ms Sinclaire have, of course, been subject to audit, both by the council’s auditors and by auditors for the European Commission, and received a clean bill of health.
"We’re sorry we gave the wrong information initially - we mistakenly provided Ms Sinclaire with the AWM grant funding amount rather than the ERDF funding - in our original response to the FOI.
"However, when Ms Sinclaire queried this information we did fully clarify the information and figures with her.
"We’re therefore surprised that Ms Sinclaire has chosen to make such an issue of this as we’ve always been transparent and open about the funding used to redevelop the site."
More on this: http://www.itv.com/news/central/update/2014-03-11/coventry-council-blames-foi-mix-up-for-fraud-claims/