A £3 million payment was handed to Thanet District Council by Cardy Ramsgate less than a week before parent company Cardy Construction Limited filed for administration.

The payment, made by the Pleasurama developers, was made to the council for the freehold of the site and the development of the Royal Sands project.

It included work to the cliff face on Ramsgate seafront.

Thanet council says the payment was received on July 20.

It was revealed on Tuesday, July 26, that Cardy Construction Ltd, based in Canterbury, were set to fall into administration, putting about 220 jobs at risk.

The firm, founded in 1946, filed a notice of intent to appoint administrators as uncertainty around the economy affects forward orders in the industry.

It has built projects such as QEQM’s cancer care unit in Margate.

The move throws the future of the redevelopment of the former Pleasurama site on Ramsgate seafront into doubt, where Cardy had been appointed as the contractor.

Former councillor Ian Driver said: “It is down to Cardy to man up and tell the people of Ramsgate, who bought the site, where the money came from, why they bought it and guarantee they can complete the work on Pleasurama themselves.

“That land has blighted the seafront and stripped away further development to the surrounding area.

“If they want to keep what little reputation they have left as a reputable building firm a statement needs to be made as soon as possible.

“It brings into question the whole situation about Pleasurama and I am extremely worried. The freehold was sold to a Cardy company days before the administration notice which seems suspicious.

“How can a company with such serious financial difficulties buy a piece of land worth £3m?”

Cardy have failed to respond to any contact attempted by journalists from Thanet Extra, Kentish Gazette, KentOnline and Kent Business.