TOWN Hall chiefs have put off a final decision on the borough council’s controversial proposal to loan £11.5 million to Warrington Collegiate over a period of 10 years.
Members of the council’s executive board have deferred the matter until their next meeting, on September 14, by which time the council’s scrutiny committee will have considered the matter.
It is understood the scrutiny committee will meet on September 1.
But by then, it is possible the Collegiate will not require the loan anyway, according to Town Hall sources.
The scrutiny committee was due to consider a “call in” by former Labour education chief Cllr Colin Froggatt earlier this week, but deferred the matter because Cllr Froggatt was unable to be present.
It was originally hoped the executive board could have reached a decision last night, because the college needed to know if the money was available by the end of July.
The executive originally agreed to make the loan at a private meeting on July 13 but could not go ahead with it because of Cllr Froggatt’s call-in.
Cllr Froggatt put forward a range of reasons for calling in the executive decision, including a lack of transparency by the council and a lack of consultation.
He was supported in his move by Conservative leader Cllr Paul Kennedy, Liberal Democrat leader Cllr Bob Barr and a number of other Labour councillors.
Warrington Collegiate has said it has conducted itself with complete propriety and engaged with the council in an open and transparent manner.
Principal Nichola Newton said: “An investment proposal was submitted to the council, in-line with other commercial arrangements the council has made, and has been subject to the council’s officers’ rigorous due diligence.
“The proposal includes a number of capital investments which will enable the college to grow in pace with the ambition of the town and better meet the skills needs evident, as well as a re-financing of the college’s existing loans.”
Council puts off decision on £11.5 million loan
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