Thursday, April 20, 2006

Labour's loans and contracts scandal

Hold your nose and read this report from today's The Times. For those with little time here are two quotes: The loans by Mr Rosenfeld and Sir David were made to the Labour Party months before Minerva secured planning permission for a £500 million shopping centre scheme in Croydon, South London.

Minerva and the Government angrily rejected any links between the financial support and the planning approval.

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Last month Rod Aldridge announced that he was standing down as executive chairman of the technology company Capita after a commercial backlash to the revelation that he had made a £1 million loan.

Capita has won billions of pounds of contracts in the public sector.

Weeks after making the loan, Mr Aldridge — who has not been nominated for an honour — was made the head of Gordon Brown’s youth community service scheme, which he and the Chancellor will launch with Charles Clarke, the Home Secretary.

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