Bankrupt British loans official resigns, embarrassing PM Cameron
The top of the British government agency that hands out millions of pounds of loans to local authorities has resigned after failing to disclose he was bankrupt, Prime Minister David Cameron’s office said on Sunday.
Cameron appointed Tony Caplin, a former senior official in his ruling Conservative party, to head the Public Works Loans Board (PWLB) this past year. His resignation in front of European elections next month along with a national election in 2015 is uncomfortable for the prime minister.
The PWLB is responsible for distributing structure loans to local authorities across Britain and controls a loans portfolio as high as 60 billion pounds ($100.85 billion).
Nevertheless, a study from the Mail on Sunday newspaper revealed that Britain’s High Court had announced Caplin, the company’s mind, bankrupt in 2012 with debts greater than 3 million pounds ($5.04 million), a fact he’d not revealed.
Government guidelines state that authorities declared bankrupt should come clean about this so that it could be determined whether or not they could retain their jobs or not.
“He must have announced he was bankrupt,” Cameron’s office said of Caplin in a terse statement. “it has been stated to him so that as an effect he’s resigned.”
The opposition Labour party, with a slim lead over Cameron’s Conservatives in the polls, said the problem called the prime minister’s view into question.
“It’s amazing the Prime Minister as well as the Chancellor (finance minister) might employ somebody who went bankrupt owing so much for the Treasury to operate the Treasury’s financing operations,” Chris Leslie, among Labour’s economic spokesmen, said in a statement.
He explained Caplin’s visit was “a misjudgment too much with a Prime Minister having a history of bad judgment with regards to his cronies.”
Cameron experienced a far more severe blow to his power when a scandal-hit minister he’d been doggedly defending resigned, revealing him to costs of bad judgment and poor management, earlier this month.
Cameron says his government has sent an extremely robust economic recovery following a serious recession, an issue he hopes will hand him re-election next year as people’s living standards start to rise again.