Fraud inquiry at London's Millennium Dome

Investigation: The Millennium Dome

LONDON, England (Reuters) -- Police say they are investigating fraud allegations at Britain's cash-strapped Millennium Dome just a week after it was dumped by a potentially life-saving buyer.

"Police are considering an allegation of certain irregularities in connection with the procurement of contracts," said a spokeswoman for London's Scotland Yard police headquarters.

She said the allegations related to a company based in south-east London, but could give no further details.

"A decision will taken in due courn out of cash until it was thrown its latest lifeline in the form of a £47 million pound bail-out on September 5.

The handout added to previous cash injections of a £60 million grant to the Dome at the start of the year, another £29 million in May and a further advance of £43 million only last month.

Negotiations with other potential buyers reopened after Nomura ditched its plans, and banking sources said the international investment bank Lazard had been asked to take charge of the sale.

A Lazard spokeswoman declined to comment on the reports.

While Nomura's Dome Europe consortium had planned to operate the Dome as an amusement park, its new prospective bidder, Legacy, headed by property entrepreneur Robert Bourne of BourneEnd Properties, wants to turn it into a hi-tech business park.

The Dome, which British Prime Minister Tony Blair said he wanted to be "the greatest show on earth," has repeatedly failed to meet visitor numbers targets and has sucked up more than £900 million of money from national lottery funds.

Opposition Conservatives say it should close and the Labour minister in charge of it, Lord Falconer, should resign.

The firm is one of the contractors working for the Dome's operator, the New Millennium Experience Company (NMEC).

NMEC confirmed police were looking into the case.

"The Dome's rigorous internal control system identified a possible irregularity relating to one contractor earlier this year," it said. "The police have been kept informed.

"This situation relates to one contractor only and no other contractor issues are being considered by the police."

Last Tuesday, a consortium led by Japanese investment bank Nomura withdrew its offer to buy the vast tent-like building at the end of the year for £105 million ($147m), saying it had been misled over the state of the attraction's finances and over exactly what it was buying.

A report by accountancy firm PriceWaterhouseCoopers found that no clear register of the Dome's assets had been drawn up and revealed that the attraction had run out of cash until it was thrown its latest lifeline in the form of a £47 million pound bail-out on September 5.

The handout added to previous cash injections of a £60 million grant to the Dome at the start of the year, another £29 million in May and a further advance of £43 million only last month.

Negotiations with other potential buyers reopened after Nomura ditched its plans, and banking sources said the international investment bank Lazard had been asked to take charge of the sale.

A Lazard spokeswoman declined to comment on the reports.

While Nomura's Dome Europe consortium had planned to operate the Dome as an amusement park, its new prospective bidder, Legacy, headed by property entrepreneur Robert Bourne of BourneEnd Properties, wants to turn it into a hi-tech business park.

The Dome, which British Prime Minister Tony Blair said he wanted to be "the greatest show on earth," has repeatedly failed to meet visitor numbers targets and has sucked up more than £900 million of money from national lottery funds.

Opposition Conservatives say it should close and the Labour minister in charge of it, Lord Falconer, should resign.

Copyright 2000 Reuters. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Troubled London Dome bailed out again
September 13, 2000
London Dome deserted by Japanese bank
September 12, 2000
Prince praises palace, dismisses Dome
September 8, 2000
Millennium Dome tickets go on sale
September 23, 1999

The Millennium Experience
Unofficial site - the Dome

Note: Pages will open in a new browser window

External sites are not endorsed by CNN Interactive.