Council accused of hiding loan to rugby club

A £100,000 council loan to a rugby club has caused uproar among opposition councillors who claim the payment was "hidden" from the public and have demanded an investigation.

Salford Council gave the sum to Swinton Lions in March to help with cash flow issues, but local Conservative leader Robin Garrido said the decision was not publicised.

The BBC has been unable to find a notice about the loan online, after a council spokesman said it was "available for all to see on the council website".

Salford Mayor Paul Dennett said the payment was agreed "in line with council processes", but Mr Garrido described the handling of the loan as "a real mess".

The group of seven Conservatives on the Labour-run council have asked for an inquiry to be held into how the loan came to be made.

A Salford Council spokesman said some decisions could be taken by the mayor "outside of the formal meeting structure", often when "a decision is urgent, such as in this case".

The authority has not responded to requests to provide evidence that the decision had been published online.

It comes after a second £100,000 loan was agreed by Salford Council as part of "immediate financial support" for Swinton Lions, which the club said was needed to assist a planned restructure.

Mr Garrido told the Local Democracy Reporting Service he had no issue with the second loan, but wants answers over why opposition councillors were not consulted.

“We will be demanding an independent inquiry to look at the situation," he said.

"Our main concern is the way it’s been handled, what advice was given to the mayor by officers, and whether this was taken.

"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."

Mr Dennett said all Labour members were told about the loan at the time of the decision in March.

He said it was agreed in line with the council’s processes.

Stephen Wild, CEO at Swinton Lions, said the club was "most grateful" to the council "from those on both sides of the political divide".

The loans would help the rugby league side undergo a "financial restructuring", he added.