Treasury and Exchequer and SOJDC respond to C&AG report

Treasury and Exchequer and the States of Jersey Development Company (SOJDC) have responded to the ‘report on States of Jersey Development Company’ issued by the Comptroller and Auditor General (C&AG) on Friday 5 June 2020. 

The C&AG report focusses on the internal operations of the SOJDC, the governance framework, the arrangements in place for the transfer of land between the Government and SOJDC and the operation of the shareholder relationship by the Government.

In her report, the C&AG welcomes the Government’s “progress on an integrated framework for asset management and regeneration and the noticeable improvements in the exercise of the shareholder function within the last two years.” 

Speaking about the findings of the report, States Treasurer, Richard Bell, said: “I would like to thank the C&AG for carrying out the review into SOJDC which is the first to be undertaken since the new company was formed in 2011. The C&AG acknowledges the progress already made by Treasury and Exchequer including the use of expert advice to provide assurance on complex property development schemes and the enhancements that are being implemented to our Memoranda of Understanding with companies wholly-owned by the States.” 

“I recognise the C&AG’s comments that further improvements need to be made and some of these are already in train. These include the creation of a Corporate Asset Management Board, an Estates Management Strategy, and a refreshed Regeneration Steering Group.

‘I also welcome the recommendations made by the C&AG to further improve our oversight of the company and the role Government plays alongside SoJDC in the redevelopment and regeneration of property assets.”

Managing Director at SOJDC, Lee Henry, said: “The board of SoJDC welcomes the report from the C&AG, including her comprehensive findings and insights.  The board was pleased to note that whilst there is room for improvement in certain areas, the C&AG highlighted that SoJDC’s Risk management arrangements are well developed and the Company’s projects are well managed, with successful outcomes, resulting in the Company’s profit and retained earnings growing significantly since 2016.”