Politics · United Kingdom · 18 hrs ago
Burnham approved £100m in loans to China-linked firm, report says
Andy Burnham approved £100m in loans to Far East Consortium, or FEC, while he was mayor of Greater Manchester.
The loans were issued between 2021 and 2026, and the interest rate has not been disclosed.
Before the loans, Burnham visited China in 2018 to promote trade and accepted flights, hotel costs and a lunch paid for by the Manchester China Forum.
The Forum is a corporate partner of FEC, and the hospitality cost £4,796.
FEC has links to Chinese business and state bodies, while its main contractor for a major Manchester project is owned by a state-run Chinese firm.
Critics say the loans raise questions about Burnham's judgment, but there is no suggestion FEC did anything wrong.
Greater Manchester Combined Authority says international visits support the region's business interests and are based on a clear business case.
Andy Burnham approved a series of loans worth £100 million to the Far East Consortium between 2021 and 2026, according to the Daily Mail.
The loans were made while Burnham was mayor of Manchester, and the report says the interest rate has not been disclosed.
The report says Burnham accepted hospitality from a commercial partner of the company after visiting China in 2018.
Conservative politicians questioned the loans and Burnham’s judgment, while the Greater Manchester Combined Authority said international visits promote the region and are undertaken with a clear business case.
The article says there is no suggestion of wrongdoing by the Far East Consortium.
- Who
- Andy Burnham approved the loans to the Far East Consortium, a China-controlled company.
- What
- A series of loans worth £100 million was approved. The interest rate has not been disclosed.
- When
- Between 2021 and 2026.
- Where
- Greater Manchester.
- Why
- The authority said mayoral international visits promote the city region and are undertaken where there is a clear business case. The specific reason for the loans is not stated.
Critics of the loans
Greater Manchester Combined Authority
Purpose of public money
Critics of the loans
Critics questioned why taxpayers’ money should be lent to an international company that makes more than £500 million a year.
Greater Manchester Combined Authority
The authority said international visits promote Greater Manchester and are made where there is a clear business case.
Burnham’s judgment
Critics of the loans
Conservative politicians said the loans raised further questions about Burnham’s judgment and use of taxpayers’ money.
Greater Manchester Combined Authority
The authority said visits are an established part of its approach and that costs are kept proportionate.
Burnham visited China on a trip aimed at boosting trade.
Burnham approved a series of loans to the Far East Consortium, according to the report.
- Loan total
- £100 million
- Recipient
- Far East Consortium
- Loan period
- 2021–2026
- Reported travel costs
- £4,796 for flights, hotels and lunch
- China visit
- 2018
What people are saying
First, it was the Manchester City fiasco, now this. Is it another case of 'lunches for loans'? The questions about Andy Burnham's judgment are just not going away.
This raises even more questions about Andy Burnham's chumocracy in Manchester and how he was using taxpayers' money.
Visits are undertaken where there is a clear business case, with costs kept proportionate.