Who was that

mystery loan

arranger?

By an amazing historical irony, when reference numbers for loans were being made out by a London usurer in 1991, the multi-million pound millstone around Boston Borough Council’s neck was allocated the account number LO13.
Note that we have called the loan a “multi-million pound” one.

This is because – whilst it is nominally for a mere one million pounds, it was taken out over sixty years at 11.125% – and so the accumulated interest when it falls due in 2051 is a staggering £6,675,000.

And as we understand it, the lenders will then require repayment of the original £1 million as well – a disaster waiting in the wings that Worst Street should start thinking about now, rather than in 2050.

For as long as we can remember, the story has been that not much paperwork exists regarding the loan.

The most significant “document” to appear was a scrap of paper with crossings-out and handwritten amendments acknowledging receipt of one million pounds “only.”

If only!

Since it was taken out, the repayments have cost Boston’s taxpayers almost £1.7 million – and there are still 35 years to go!

After all the reports of scarce paperwork, it came as something of an eye-opener when Worst Street  responded to a Freedom of Information request by a Boston Eye reader with a list of 51 documents dating back to the year the loan was first mooted.

Even more significant is the deletion of some names from the disclosures.

The FoI response said: “Names of living individuals whose information is not in the public domain have been redacted.”

This suggests that these anonymous men and women may well hold more information than has become available – which could shed more light on the whys and wherefores of this loan disaster.

The fulfilling of the FoI request coincided with the full council meeting of 18^th January.

In a photo-copying marathon which alone must have costs hundreds of pounds, councillors were issued with packs of the information – ahead of it reaching the person who requested it in the first place.

Not only that – but we understand that the copies issued to councillors do not contain the crucial redactions … which means that if any of them are really determined to get to the bottom of the matter they are well-placed to do so.

Tomorrow … how the loan was taken out … and how easy it was to get the money without much difficulty – and apparently without the need for any approval.

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