Newham deny grant write-off

  • by Staff Writer
  • Friday, 8th September 2017

Newham Council have denied reports that they are set to write off a ?40million cash injection as a result of poor returns from the Olympic Stadium deal.

Newham injected the vast sum of taxpayers' money into the Olympic Stadium project in return for a share of the operating profits - which have failed to materialise as a result of previously unforeseen expenses and low profit margins.

It was claimed on Wednesday that the Council were planning to 'write-off' the loan by a local resident - a suggestion rejected last night by a spokesman, who insisted that Newham would continue to seek a return on the investment.

"The loan is shown, for accounting purposes, as currently 'impaired', or damaged, due to the current financial performance of the stadium," said the spokesman. "It is not a write-off of the loan."

However that failed to assauge the concerns of Councillor Rokhsana Fiaz, who admitted to being "alarmed" by the ?41.6million losses declared by Newham Legacy Investments Limited, a subsiduary of the Council's.

"I've already asked for further details as I urgently want to know why this happened, whether that loan will ever be paid back and if so, by when," said Fiaz.

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Meanwhile the current Mayor of Newham, Robin Wales insisted that the Council would continue to seek better returns from the arena - whilst suggesting that the stadium should be used to host more musical events.

"It was an honour to host the para-athletics and the IAAF World Championships," he said. "But in future years large music concerts are likely to raise more revenue."

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