Capita boss resigns over Labour loan
Thursday, 23 Mar 2006 17:14
The chairman of support services group Capita resigned today, following adverse publicity over his decision to loan money to the Labour party.
Capita chairman Rod Aldridge announced his resignation today, while acknowledging that his personal loan to Labour, possibly worth as much as £1.5 million, had led to public questioning of the group's integrity.
Labour is not compelled to disclose full details of loans, as only donations have to be made public.
Mr Aldridge said: "At present, the group's reputation is being questioned because of my personal decision to lend money to the Labour party.
"There have been suggestions that this loan has resulted in the group being awarded government contracts. This is entirely spurious," he added.
Mr Aldridge said that he could no longer allow the misconception to continue, as a founding member of Capita since 1984.
The chairman relinquished his role as an executive of the firm with immediate effect, but will remain as a non-executive until July's interim results.
