Manchester City Loan Investigation Intensifies
An investigation is underway into loans made by Andy Burnham’s administration while he was mayor of Manchester, focusing on a £55m loan to Manchester City’s owners. The scrutiny centers on the fund’s use and the circumstances surrounding the loan to property companies.
What happened
- Greater Manchester Combined Authority (GMCA) loans totaling £55m were provided to three companies ultimately controlled by Sheikh Mansour bin Zayed al-Nahyan, the vice-president and deputy prime minister of the United Arab Emirates, in 2017.
- These loans supported the Manchester Life housing development, aiming to create 6,000 homes.
- The GMCA stated the loans were repaid in full.
- However, scrutiny has arisen due to the opaque nature of the loan approval process, as highlighted by Liberal Democrat councillor John Leech, who chairs the overview and scrutiny committee.
- Leech expressed concerns about the lack of transparency and questioned why a wealthy entity like Sheikh Mansour needed to access public funds through the scheme.
- The GMCA defended the fund, noting it has built 11,000 new homes and contributed billions to development.
- The investigation is being supported by the GMCA’s scrutiny committee, and Downing Street has requested a ‘manual trawl’ of Burnham’s meetings to ensure transparency.