Exeter City Council is to sink an additional £1.25 million into Exeter Science Park after it emerged that the joint venture is unable to repay a total of £7 million in debts owed to or guaranteed by its shareholders, which also include Devon County Council, East Devon District Council and the University of Exeter.
Exeter Science Park is the third city council company to run into trouble after the dissolution of Exeter City Futures, which received more than £1.5 million of public funding, and losses of £4.5 million incurred by Exeter City Living that the council has yet to recoup.
The council’s external auditor recently criticised the council’s approach to governance and financial management of all three companies, identifying a range of issues including lack of performance monitoring, lack of objectives against which performance could be monitored and lack of oversight by councillors.