Former Battersea Power Station CEO Alleges Unfair Dismissal Over Financial Concerns
Donagh O'Sullivan, the former chief executive of Battersea Power Station, has claimed he was unfairly dismissed after voicing serious concerns about financial misreporting that allegedly presented a misleading picture to investors and the public. The allegations emerged during an Employment Tribunal hearing where Mr O'Sullivan filed claims for both unfair dismissal and whistleblowing detriment.
Conflicting Accounts of Dismissal Reasons
In its defence submission, Battersea Power Station Development Company stated that Mr O'Sullivan had been terminated in May 2025 due to poor performance, lack of strategic leadership, and various misconduct allegations. The company asserted he had been "unable to demonstrate any real insight into what was required of him as CEO" and had lost the support of his senior team by November 2024.
However, Mr O'Sullivan countered that his dismissal stemmed from raising concerns about accounting practices that he believed significantly overvalued undeveloped land plots. According to his claims, internal accounts valued these plots hundreds of millions of pounds higher than independent estimates, potentially misleading stakeholders about the development's true financial position.
The Peppa Pig Incident and Other Conduct Allegations
Among the specific examples of "unbecoming" conduct cited by the company was an incident where Mr O'Sullivan hugged a person dressed in a Peppa Pig costume during a shop opening event at the development. The former CEO acknowledged this occurred but argued it was presented as one of only two concrete examples of inappropriate behaviour.
The second example involved Mr O'Sullivan addressing cleaners and security guards by their first names and permitting them to use his first name in return. The company maintained it had not shared full details of all complaints to protect those who had raised concerns.
Financial Reporting Dispute
Mr O'Sullivan alleged that the company's accounting methods involved placing expenses on the balance sheet rather than treating them as immediate profit reductions, resulting in what he claimed was significant overvaluation of unbuilt sections of the site. He stated that external assessments valued the land substantially lower than internal figures suggested.
According to the former CEO, he raised these concerns directly with BPS directors but was told the accounting practices were appropriate. He further claimed that a forensic accountant he hired had confirmed the validity of his financial concerns.
Company's Robust Defence
Battersea Power Station Development Company strongly denied any accounting irregularities, stating that forensic accountants had investigated "historic claims" and concluded Mr O'Sullivan's concerns were "not borne out." The company emphasized that its practices "adhere to international accounting standards" and are audited by PwC, which has not been accused of any wrongdoing.
A company spokesman told the Daily Mail: "We strongly deny and are robustly defending the unfounded allegations made by Mr O'Sullivan in the Employment Tribunal. There are no claims made by Mr O'Sullivan relating to BPSDC's accounts."
Additional Performance Concerns
The company's defence filing included criticism from an independent lawyer hired to investigate misconduct allegations. According to the filing, this investigation found Mr O'Sullivan displayed a "brusque and at times intemperate manner, veering into aggression if angry" toward senior female colleagues and demonstrated a "continued lack of leadership" regarding strategic direction.
BPS suggested Mr O'Sullivan realized his dismissal was imminent and made allegations to "improve his personal position when facing dismissal for poor performance."
Background and Context
Mr O'Sullivan joined Battersea Power Station in 2024 after spending more than two decades at London property developer Galliard Homes. He was hired specifically to plan a "good financial return" for the development's investors.
In its defence, BPS acknowledged the development had been costly, with investors facing a "commercial challenge" due to "significant historic costs incurred on the project." The company manages the power station estate on behalf of Battersea Project Holding Company, the holding entity for the 42-acre regeneration project.
Battersea Power Station, which once supplied approximately one-fifth of London's electricity before being decommissioned in 1983, was purchased out of bankruptcy by three Malaysian investors in 2012. The redevelopment has been one of London's most significant regeneration projects in recent years.
The company spokesman added: "Adhering to the confidential nature of Employment Tribunal procedures, we cannot comment on this matter further at this time." The tribunal continues to examine the conflicting accounts of Mr O'Sullivan's dismissal and the serious allegations surrounding financial reporting practices at one of London's most iconic developments.
