Telegraph Media Group issue apology and damages for falsely accusing businessman of being “willing beneficiary” of Tower Hamlets ‘corruption’

A story that you may have missed this weekend but which is certainly noteworthy.

The Telegraph Media Group have published an apology to Mr Mujibul Islam for articles published by Sunday Telegraph journalist, Andrew Gilligan last year, accusing Mr Islam of being “a willing beneficiary of [Mayor Lutfur] Rahman’s corruption.”

The offending articles, which are no longer available on the Telegraph website, alleged that Mr Islam had benefitted from preferential treatment when he bid for the sale of Old Poplar Town Hall and when later submitting a planning applicaation to convert the building into a hotel.

In an article published on 19 January 2014 titled ‘Borough of Tower Hamlets, a byword for sleaze,’ Gilligan claimed to have revealed details of the sale of the council property. He appeared later to claim credit for an “independent audit, separately ordered by councillors after The Telegraph revealed the sale” on grounds of a “breach of its own rules to favour Mr Rahman’s associate.”

In an article published on 16 July 2014, Gilligan alleged that Mr Islam, who admitted an affiliation to the former Tower Hamlets Mayor, had benefitted from Rahman’s “decision to sell a lucrative council asset to one of his key associates for little more than half its true value.”

Gilligan alleged that the council property was “handed over to Dreamstar, an unregistered company controlled by the owner of Mr Rahman’s election campaign website, for just £875,000.”

Gilligan went on to detail Mr Islam’s connection to the former Mayor writing “[He] is chief executive of Medialink, the registered owner of Mr Rahman’s 2010 election campaign website, lutfurformayor.com. Mr Islam admitted that he had “had an affiliation” with Mr Rahman and had “helped” him during the 2010 election, but insisted that they were no longer close.”

Gilligan further argued “The deal is a key part of a government investigation into Tower Hamlets ordered by the Communities Secretary, Eric Pickles.”

Gilligan alleged that council staff had “lied to councillors that Dreamstar was the “highest bidder” for the property.” He also claimed “Dreamstar missed the deadline at the “best and final offer” stage altogether but was allowed to submit a further “late” bid after all the others, raising its offer to £875,000, though it did “not comply with the council’s procedures.””

Gilligan added, “The lucrative [planning] permission was given in secret by Mr Rahman’s officers, though applications of this scale would normally be decided in public by elected councillors.”

At the bottom of the article is an admission most telling: a council report into the sale of Old Poplar Town Hall found “no evidence of illegality or maladministration causing injustice” and that “no elected individuals have been involved in the processes investigated.”

It would seem Gilligan would have been well advised to have paid close attention to the official council report into the sale than spin a tale of fantasy corruption in his axe-grinding vendetta against the former mayor.

In the weekend paper, The Telegraph admitted libelling Mr Islam and falsely accusing him of financially benefitting from “corruption”. The paper has since removed the articles and published this apology:

“In our coverage of Luftur Rahman the former mayor of Tower Hamlets, we reported on the sale of Poplar Town Hall to a company controlled by Mujibul Islam, a local businessman,and the subsequent grant of planning permission for a hotel. Our articles suggested that Mr Islam was a willing beneficiary of Mr Rahman’s corruption. This is untrue.  We accept that Mr Islam bid for the property on the open market and did not manipulate the planning process . We apologise to Mr Islam and have agreed to pay him damages and costs.”

Question is, what remedial action will now follow from the Department for Communities and Local Government given that the false allegations were taken at face value and formed “a key part of a government investigation into Tower Hamlets ordered by the Communities Secretary, Eric Pickles”?