Arts Council England said it was seeking to recover £400,000 of funds awarded to Primary Event Solutions during the pandemic following analysis of how the money was spent.
Lord, who was appointed to advise Great Manchester mayor Andy Burnham, and who became a prominent hospitality campaigner during the pandemic, said the grant had been investigated twice and cleared of any fraud or wrongdoing.
However, he acknowledged there were a “small number of unintended oversights” which impacted the application’s clarity, and that the grant status has been updated
The Warehouse Project and Parklife founder owned a minority 30% share in Primary Event Solutions, which is now in liquidation.
In a statement, Lord says: “While we acknowledge the change in grant status, we appreciate that Arts Council England have found that there is no finding against the company that it deliberately misled the Arts Council in this application.
“The company and its former directors have continued to work closely with Arts Council England to evidence that grant funds were used appropriately to support staff wages and company stability during the pandemic. United We Stream, for example, was a hugely successful event which raised £583,000 to support cultural organisations, businesses and individuals affected by lockdown. Supporting such businesses has always been my only mission in my various, unpaid roles.
“However, given the company’s current status in liquidation, and recognising that there are a small number of unintended oversights which have impacted the application’s clarity under the criteria, we accept that the grant status has been updated.”
Lord adds that he remains concerned over what he says are inconsistencies and a lack of proportionality in the handling of the matter.
“Not only has this application been reviewed twice previously by the organisation’s Counter Fraud team, which, after examining the financial evidence and invoicing, concluded on both occasions that it was compliant with grant guidance, but the length of time taken to bring the matter to a close raises cause for concern and these delays have taken a significant, personal toll on myself and my family,” he says.
In a statement accepting Lord’s resignation, Burnham described him as a “brilliant and vocal champion” for Manchester’s night-time economy and cultural sectors during what he described as “one of the industry’s most difficult periods in living memory”.
“[Lord] has put a huge amount of time and energy into his work as Mayoral Advisor, supporting our councils and many local businesses. He has done all of this completely free and out of his own pocket, never taking or receiving any payment for this work.
“Sacha has accepted there were inaccuracies in a grant application, and I believe him when he says there was no intention to mislead and that he made no personal gain from the grant. Given that the Arts Council’s Counter Fraud team previously found no misuse of public money, it is not clear to me why the Arts Council has now reached this decision.
“Sacha has gradually stepped back from his role in recent months. Last night, he stepped down as Mayoral Advisor. With regret, I accepted his resignation and respect his decision.
“We value his commitment to Greater Manchester and the massive contribution he has made.”