TENDRING Council loaned £6million to a fellow Essex council before concerns were raised over its finances, it has been revealed.

Thurrock Council leader Rob Gledhill resigned last month following the launch of an investigation announced by Local Government Secretary Greg Clark.

It came after investments, made with hundreds of millions of pounds borrowed from other local authorities, were said to have caused a £20million loss for the council.

A report by the council’s deputy finance officer, Jonathan Wilson, said Government ministers have appointed an Essex County Council commissioner to investigate and oversee financial decisions made by the council.

Carlo Guglielmi, Tendring Council’s cabinet member for finance, said the authority had investments in Thurrock Council but nothing was outstanding.

“As part of our regularly-reviewed Treasury Management Plan we currently have £6million invested in Thurrock Council in three separate deals; these are short-term investments, all repayable within the next five months, and represents just over 6 per cent of our total portfolio.

“We are not aware of any reason why Thurrock cannot meet its obligations, but will of course continue to monitor the situation closely.

“Investing, lending and dealing with other local authorities is a common and long-established practice, which auditors are well aware of.”