Northampton Borough Council has admitted controversial football club loan went ‘badly wrong’ and apologised unreservedly.
A report by its internal auditor Price Waterhouse Cooper (PwC), published today, described the council’s management of the loan to Northampton Town Football Club as ‘inadequate’.
PwC also recommended Northampton BC ‘improve’ its processes for dealing with loans.
The council has put the issuing of any new loans on hold until a new corporate governance framework has been put in place.
It will also implement due diligence guidelines that have been reviewed by the borough council’s banker, Barclays.
Cllr Jonathan Nunn, leader of Northampton BC, said: ‘First and foremost, I apologise for the past failings highlighted in our auditor’s report.
‘The council’s management of this project fell seriously short of the standards people have a right to expect from their council, and that is wholly unacceptable.’
’When the loan to the football club went so badly wrong, we asked our auditors to look at what happened and they have given us clear advice on the improvements that must be made,’ the councillor continued.
‘I accept that the Council failed to manage this loan in a proper way and clear action must be taken to show that lessons have been learned.’
Photo: ©Ian Rob
