On Air Manx Radio Breakfast Ben Hartley & Sian Cowper | 7:30am - 9:30am

Sefton loans not lawful

 

Economic Development Minister John Shimmin has offered to resign after it emerged government acted unlawfully over the Sefton bailout.

 

 

 

However, it’s been confirmed Mr Shimmin’s resignation has been turned down.

 

 

 

In Tynwald this morning, Mr Shimmin apologised unreservedly and confirmed he had tendered his resignation after independent legal advice showed the government should not have agreed to aspects of the deal.

 

 

 

The advice from lawyer Richard Moules QC concluded ‘more likely than not’ both the original £450,000 loan made in 2012 and the £1.2m cash loan given the following year were ‘ultra vires’ - ie not lawful. The Sefton Group was given £4.5 million of taxpayers' money last year after claims it was in serious financial straits.

 

 

 

However, Treasury Minister Eddie Teare - acting on behalf of the Chief Minister Allan Bell who is off-Island on business – said Mr Shimmin had ‘acted in good faith’ and ‘in the best interests of the Island’s economy’ and would not be forwarding Mr Shimmin’s resignation to the Lieutenant Governor.

 

Michael MHK Alfred Cannan has asked for the matter to be debated this afternoon.

 

 

 

 

Live coverage of Tynwald is continuing on Manx Radio Am 1368 and manxradio.com

 

 

 

 

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