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Yorkshire Credit Union loan inquiry row
8:38am Tuesday 5th February 2013 in News
YORK’S council leader has accused political opponents of shying away from a full investigation into North Yorkshire Credit Union’s collapse.
The organisation, previously York Credit Union, folded last year and a £100,000 loan agreed by City of York Council in 2009 was written off. At the time the loan was discussed, council officials warned city leaders it was “extremely high risk”.
Coun James Alexander, who leads the Labour-run council, said in a letter to Liberal Democrat group leader Coun Carol Runciman that a “full scrutiny review” of the credit union’s failure should be held and examine the actions of the Lib Dems, who led the authority when the loan was made.
Coun Runciman and Conservative councillor Paul Healey have asked for a review of how the council makes loans and grants to external organisations. Coun Alexander claimed this meant the Lib Dems were reneging on previous calls for a full public inquiry into the credit union.
Coun Runciman said a scrutiny committee had decided the review “could only realistically focus on the way council loans are monitored in the future” and Labour members of the committee supported this, adding: “Coun Alexander should listen to them as they seem to understand better the nature of the committee and what it can and cannot do.”