East Devon District Council has said no public funds were used to pay staff at its ‘dormant’ housing company, which has not built or purchased any properties since it was set up in 2017.
Councillors are now setting up a forum to make East Devon Homes Ltd 'fit for purpose' and ensure that more social housing is provided.
The Herald asked EDDC whether taxpayers' money was used to pay salaries at the company, and how it was able to operate for two years without providing any progress reports to councillors.
A spokesperson for EDDC said: "To date no suitable opportunities have come along for investment through the company, and all new property acquisitions have gone through the council's social landlord arm.
"The company directors are listed with Companies House in the normal way and no funds have been expended on staff.
"We are exploring different ways of ensuring that the company delivers a modest programme of development, which will be reported to members for consideration."
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