Newham Council has said a £40m loan made to transform London Stadium is “damaged” and would only be recouped if the former Olympic Stadium started making money .
Newham insists they have not “written off” the loan and that downgrading its status was merely “prudent and responsible” accounting in response to the stadium’s “challenging” first year in its new guise. But councillors and residents expressed concern as the borough, one of the most deprived in the country, is facing cuts.
Newham Labour councillor Rokhsana Fiaz, a member of the audit board and the council’s chairman of scrutiny, said: “It’s alarming for residents to read about a £44.4 million impairment relating to a loan Newham council has given to refurbish West Ham’s stadium via a company it owns. I’ve asked for urgent clarification and details including any further financial implications facing Newham council. Residents need reassurances that their money hasn’t been wasted and that the financial benefits promised from this much-heralded council investment continue to flow.”
“Newham council is working with the Greater London Authority, the London Legacy Development Corporation and our other stadium partners on a range of options to improve the financial performance of the stadium. The future value of our loan, and its treatment in our accounts, is directly linked to that future performance.”
