A COUNCIL leader has urged a charity at the centre of a controversy over a huge loan to its chief executive to be "fully transparent".
The leader of Colchester Council, David King, said Community360 needs to "explain and not just defend" the circumstances surrounding a loan of more than £200,000 which was paid to its chief executive, Tracy Rudling.
Mr 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 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.”
RELATED: Charity bosses say criticism of CEO who loaned herself £200k is a 'personal attack'
The council has written to Community360’s 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.
The charity 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.
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.”
The council has requested a response to its letter by Monday.
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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