Salford Conservatives have demanded an inquiry into what they have called a “hidden” Salford council loan given to one of the city’s rugby clubs.
The council gave Swinton Lions £100,000 in March to help with cash flow problems, but local Tory leader Robin Garrido says he was not made aware of the payment at the time.
A decision note was not published on the council website, causing concerns that the payment was “hidden.”
Last week, Salford council agreed to provide a second £100,000 loan to the rugby league club, but this was made public. Swinton Lions said the loans are part of a planned restructure at the club.
Coun Garrido and Salford Conservatives did not challenge the second loan, but they have demanded an investigation into the first payment, and accused Salford Mayor Paul Dennett of not sharing information about it with other councillors, including from the Labour Party.
Mr Garrido said:
“We will be demanding an independent inquiry to look at the situation. Our main concern is the way it’s been handled, what advice was given to the City Mayor by officers, and whether this was taken.
“It’s a real mess. It seems to me that we have a City Mayor that will make any decision he wants to make regardless of anything else, and that’s not good for democracy.
“He has a duty to run the city in a way that is seen to be fair and reasonable, and that includes consulting with the opposition and members of the council.
“I know one very senior Labour member, who I’m not going to name, who knew nothing about it.”
Mr Dennett said all Labour members were informed about the loan at the time of the decision, and that it was agreed in line with the council’s processes. He added that he has offered to meet with Coun Garrido to discuss the matter directly.
Salford council said all decisions taken are “efficient, transparent and accountable to local people.”
A spokesperson, added:
“Most decisions are made at the regular council meetings such as full council, cabinet, property and regeneration briefing, procurement board or one of the lead member briefings, all of which are available to be attended by members of the public.
“However, sometimes decisions can be made by the City Mayor and members of the cabinet outside of the formal meeting structure.
“This tends to happen where a decision is urgent such as in this case with a loan to Swinton Lions. The decision made is still published, available for all to see on the council website and it was subject to call-in, which has now expired.”
The Local Democracy Reporting Service has not been able to find a decision notice for the loan made in March. Salford council was asked to provide evidence of this.
Stephen Wild, CEO at Swinton Lions, said:
“Swinton Lions RLFC is most grateful to all at Salford City Council, and from those on both sides of the political divide, regarding the agreement of this commercial loan.
“It will assist with our financial restructuring and underpin our strategic plans moving forward, whilst indirectly also supporting the wonderful work of our Community Foundation.”
Earlier this year, Salford council also faced criticism from opposition councillors over loans to Salford Red Devils rugby league club, as well as its plan to buy the remaining half of Salford Community Stadium, home to the Red Devils and Sale Sharks.
