THE leader of Colchester Council, who was previously a trustee of a charity which loaned its chief executive £200,000, says he accepts he shared responsibility for oversight in the period the loan was granted.
Yesterday, the council wrote to Community360’s (C360) chair of the board of trustees after it emerged the Colchester-based charity gave a £206,341 loan to its chief executive, Tracy Rudling, in the last financial year.
In the same year, the charity also paid more than £65,000 to a construction company owned by Mrs Rudling’s husband.
David King was a trustee of the charity between March 2021 and November 2022, when his resignation was accepted at the charity’s annual general meeting.
He began stepping back from the role in the summer of 2022 because he was “mindful of his new responsibilities as leader of the council” after that year’s local elections.
He said: “I was aware when on the board of challenges to C360 on the earlier award of business to the chief executive’s husband’s building company.
“My recollection is that these complaints were investigated, and C360 was cleared by auditors and the Charity Commission.
“I do not recall the loan agreement but have asked for details and accept I share a responsibility, with others, for oversight during that period.
“I note it was declared in their accounts, but I have urged C360 to explain and not just defend, to be fully transparent, and to take any learning they can.”
He added: “I have had no responsibilities for C360 since 2022.
"Given, however, the potential or perceived conflict of interest, I have asked the chief executive of the council and the cabinet member for communities to lead on the city council’s response to this story as they seek appropriate assurance and await C360’s explanation.”
The charity works with partners, including the council, to support education and health services and to relieve poverty, distress, and sickness.
It receives funding from Colchester Council, Essex County County, the Suffolk and North East Essex Integrated Care Board and Braintree Council.
Colchester Council confirmed it is “aware of the recent allegations” and “takes all such matters seriously”.
In its letter, the authority requested written assurance that no funding provided by Colchester Council or the other public bodies was used to finance the loan.
RELATED: Charity bosses say criticism of CEO who loaned herself £200k is a 'personal attack'
Natalie Sommers, the councillor responsible for communities, acknowledged the council has a responsibility to make sure public funds are used properly.
She said: “The recent allegations raise fundamental questions that need to be answered.
"We have written to the board of trustees seeking clarity and assurances, and we await their response to ensure transparency and responsible partnership.”
A letter published earlier this week and signed by the chairman of the charity's board, Elisabeth Feltham, and deputy chairman, Stewart Thomson, said they considered the allegations as a "personal attack" on Mrs Rudling and her family.
They also quoted a statement from the Charity Commission from April 2022 reporting there were no regulatory concerns.
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