Football club loan backed by Corby council chiefs without approval
- 29 May 2012
- From the section Northampton
The ex leader and chief executive of a Northamptonshire council agreed to guarantee a loan to a football club without local authority approval.
Corby Borough Council guaranteed a £60,000 loan to the town's football club from Greene King Brewery Company.
The decision was signed off in February 2010 by ex chief executive Chris Mallender and ex leader Pat Fawcett, a report leaked to the BBC revealed.
Acting chief executive Norman Stronach said the report was true.
He added the matter was being investigated.
The report went on to say that the decision of Mr Mallender and Ms Fawcett to act as guarantors for the loan on behalf of the council was "beyond their powers".
Has since died
The loan should have been reported to Corby council's full committee or other statutory officers on the Labour-run authority.
Mr Mallender said he was unable to comment as he was bound by a confidentiality agreement and Ms Fawcett, who stepped down from the council in November 2011, has since died.
The report also said that the council could retrospectively give consent to guaranteeing the loan but none of the statutory officers would support such an action.
Corby Town Football club already gets £38,500 in council grants for managing the facilities at Rockingham triangle.
The local authority is also giving a one-off payment to the football club worth £11,500.
This money is completely separate from the brewery firm's loan which the former council bosses guaranteed.