The Public Accounts Committee (PAC) has expressed concerns over the management of loans provided by the Department of Culture, Media and Sport (DCMS) during the Covid pandemic. With only 474 million pounds distributed to support the sports and culture sectors, 400 million remains unpaid, and less than half of the borrowers have initiated repayments. The PAC criticized the DCMS for being overly optimistic about repayments and for a significant gap in accountability regarding the loans, particularly linked to rugby clubs facing insolvency. A senior civil servant's potential conflict of interest was also flagged, complicating the management of taxpayer funds.
The Public Accounts Committee reported that the Department of Culture, Media and Sport (DCMS) exhibited severe weaknesses in managing the loans, leading to a high uncertainty of repayment.
The MPs highlighted a conflict of interest regarding a senior civil servant's connections to rugby, resulting in a perilous gap in accountability concerning the funds lent.
PAC chair Sir Geoffrey Clifton-Brown emphasized the necessity of government support during the pandemic, but criticized the long-term financial guarantees extended to troubled institutions like rugby.
The PAC warned that future repayments could be at risk due to DCMS’s obligation to preserve the financial viability of the sectors it has propped up with loans.
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