The Principal Auditor has written to GSD Shadow Finance Minister Roy Clinton in respect of the issue of the £3.4million that Mr Clinton asked him to investigate. The explanation provided to Mr Clinton has clarified the issue and he is satisfied that no money is owed to Community Care by Government.

Mr Clinton the GSD shadow minster for Public Finance said:

“The letter from the Principal Auditor however does not address the more major issue of the £85 million loan which Community Care had made to an undisclosed entity.

The Principal Auditor has stated that he considers payments made by the Government to Community Care to be donations rather than contributions and thus not subject to audit by the Principal Auditor. If treated as contributions then powers under the Public Finance (Control and Audit) Act to audit Community Care would apply as in the past.

I have pending questions in Parliament this week and if I do not obtain any information as to the beneficiary of the £85 million loan made by Community Care I intend to take up the matter with the Charities Commission.”