The complex, built for $2 million-plus by the Dumaresq Shire Council in the late 1990s and taken over by the combined Armidale-Dumaresq Council which merged in February 2000, was the subject of continued allegations of non-transparency involving the discussions and meetings concerning its proposed and eventual sale last year.

The allegations throughout much of 2001 were made by councillors Herman Beyersdorf, Peter Monley and the late Pat Dixon.

It was finally sold late last year to Jack Gordon and Lorraine Smith of Moffatt Falls Pty Ltd.

At Monday night's meeting, Cr Beyersdorf asked a question without notice following the normal course of business and before the council went into closed session.

He questioned if the council had had been aware that the first mortgage of Moffatt Falls (to the National Australia Bank) was for $570,000 and not $500,000 as had previously been intimated.

He was told by general manager Shane Burns that the question would have to be taken on notice, meaning that while no immediate answer could be forthcoming, it would be answered as soon as possible or at the next monthly meeting at the latest.

When Moffatt Falls took over the complex, the reported sale price was for $725,000, made up of $500,000 in cash with the balance of $225,000 to be repaid to the council over seven years at an interest rate of three per cent. No mortgage or interest payments were required to be made for the first three years.

Cr Beyersdorf said the first mortgage which had been agreed to was apparently for $500,000, but he now understood it was for $570,000.

Before the sale went through, councillors Beyersdorf, Monley and Dixon had also expressed concern that another Armidale company, Narcam Pty Ltd, which had put in a final cash bid for Yaraandoo of $650,000, had never been seriously considered as a prospective buyer, although no official reasons were ever given.

On August 9 last year, The Leader quoted Cr Beyersdorf as saying that "a clause allowing for the adjustment of the purchase price commensurate with any loss or damage suffered by the purchaser was not even brought to the attention of the council".

He added: "I'm really beginning to wonder whether these councillors are as concerned about the need for proper process and their responsibility ... as they are about primitive politicking, using their numbers in a totally undemocratic manner in an attempt to shut down legitimate questioning on these serious

concerns."