THE Mersey Partnership has narrowly avoided insolvency, the Daily Post can reveal. The region’s official tourism and inward investment body has secured a six-figure rescue package from the North West Development Agency who stepped in to save it. The Daily Post has obtained documents revealing the scale of the problem that came to a head in the last few months. Last night, TMP chief executive Lorraine Rogers said that the situation had been sorted out, and the organisation was now in its best financial position for a “long, long time”. We're leaner and fitter for 2008: TMP chief
 ONE of the first things Lorraine Rogers did when she took the helm as chief executive of The Mersey Partnership was to start a root-and-branch review of its operations. Last night, she said it would have been surprising if nothing had emerged, but it is unlikely she expected to find the problems she did at Princes Dock on taking over last August. TMP, the key tourism and investment body for Merseyside, works very closely with North West Development Agency, which provides 60% of its funding. An internal NWDA financial document obtained by the Daily Post today reveals how TMP has been forced to call the Agency for help and to “implement improved financial governance and controls”. The document states: “TMP are close to trading insolvently, as they have no access to overdraft facilities or other lines of credit. “In addition, GONW (Government Office North West) have now concluded . . . that TMP are required to pay £473,000 of ERDF. “It is essential that TMP look to reducing their over-head base as this currently accounts for approximately 45% of all their income. “The priority at the mom-ent is to bring all their finan-cial records up to date, and to put in place financial management information systems which will enable them to manage their busi-ness going forward.” According to the latest published accounts for TMP, it owed at least £2.5m to creditors at the start of the 2007 financial year. Ms Rogers last night said the backlog was a six-figure sum and pointed out that a lot had changed since the NWDA document was put together. In November, Roy Morris stood down as chairman of the board after seven years in the job. At the time, the reason for his resignation was to comply with the agency's constitution which prohibits the chairman serving more than two three-year terms of office. This explanation was repeated by Ms Rogers last night. But a leaked email from board member Maureen Williams to NWDA chief executive Steve Broomhead, in October, reveals she demanded his resignation in response to the financial “mess”. The announcement of Mr Morris’s departure followed the resignation of TMP's finance director, Mrs Pol Clark, earlier that month. No explanation for her depart-ure was given at the time, though last night Ms Rogers said Mrs Clark had left following a “short period of illness”. In her email, Professor Williams suggests staff from the NWDA be sent into TMP to see if the financial director “can be brought up to speed or will need to be strengthened in some way”. The Daily Post can also today reveal that Geoffrey Piper, deputy chairman of TMP board and chairman of its audit and cor-porate affairs committee, has also resigned. This is something Prof Williams also demanded in her email to Mr Broomhead. Ms Rogers said he had been on the board since 1993, and had felt “it right to make way for some new faces”. “During the course of the review in September/October, it was apparent to me there was effectively a backlog in finance – both in invoices and claims,” she added. THE backlog related to a six-figure amount of money, she said. The nature of TMP is that it issues grants for marketing the region, and then has to claim the money back from funding partners. “As part of this operational review, I was offered some resources from NWDA to help with the review. “We worked quite closely on the resolution.” Ms Rogers, who is also chairman of Tranmere Rovers, said a specialist consultant who worked on the review was currently interim financial director while a replacement for Mrs Clark was found. “We have made massive progress and dealt with most of the backlog and a number of changes have been made to tighten up internal control and systems. “The team have worked very hard to complete the backlog of claims.” She said the £473,000 Objective 1 funding to be paid back was still under discussion, but that repaying it would be “manageable”. “From what I can see, we are probably in better shape than we have been in a long, long time. “The review has involved us seeing where our strengths and weaknesses are.” She disagreed with the language used by the NWDA. “I would not have used those words [close to insolvency]. I think it was a point in time in October/November before the backlog of claims had been processed and cash had come in.” “I am confident now. We have got massive opportunities with 2008, it’s important that we are starting the year in great shape.” Last night, Mr Broomhead said the Agency became aware of some historic financial issues at TMP in October. “Clearly there have been some issues around the financial position of TMP as an organisation,” he said. “We have been working very hard with TMP over the last couple of months regarding their overall financial position. We have offered considerable support to Lorraine Rogers and her team.” Mr Broomhead said the Agency had offered a six-figure credit line – which has so far not been taken up. “TMP continues to do the job for Merseyside, it’s not an organisation that is in crisis. “If they had not taken certain steps, the matter might not be as certain as I described. I am confident they have taken the right steps to stabilise their position.” He denied the situation had been covered up, adding: “They realised not long after Lorraine Rogers arrived there were some structural issues on finance.” The NWDA sent in its own accountants to help buoy up the organisation. “It has gone through a difficult period, it didn’t have a chief executive for nearly a year. “I am absolutely convinced it’s doing a good job for the Merseyside economy and is now in a stable position.” Frank McKenna, chairman of Downtown Liverpool In Business, said: “It’s worrying that an organisation of this type has found itself in difficulties and had to be bailed out by the development agency. “Lorraine Rogers’s appointment has reinvigorated the organisation, which is good, because it is essential the TMP performs at its maximum potential this year.” Last night, Liverpool City Council’s opposition leader, Cllr Joe Anderson, said he was concerned about the situation. “I am extremely disappointed about this, I will be raising it with the District Auditor. “It undermines confidence in organisations and quangos like this, after all it is public money that they are spending.” “It is only fair that, when they make mistakes, they are held to account. “It seems to me there has been an attempt to cover it up.” If they are prepared to co-operate, then I think we can put a very positive spin on it – but, if not, we should get out as soon as possible >>> | 
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