Andy Burnham Accused of 'Lunches for Loans' Deal With China
Mayor criticized for approving £100 million in taxpayer loans to firm with Chinese Communist Party ties after accepting hospitality.
Andy Burnham has been accused of a potential quid pro quo involving "lunches for loans" with China. The accusation stems from his approval of £100 million in taxpayer funds lent to the China-controlled Far East Consortium (FEC) during his tenure as Manchester mayor. This occurred after Burnham accepted hospitality from a commercial partner of FEC.
The loans were reportedly issued between 2021 and 2026, with the interest rate remaining undisclosed. This lending followed a 2018 visit to China led by Burnham, which aimed to foster trade relations. The hospitality accepted by Burnham, valued at £4,796 for flights, hotels, and a lunch, was funded by the Manchester China Forum. This public-private partnership, established by George Osborne in 2013 to enhance trade links, is a corporate partner of FEC.
The revelation has drawn criticism, with some comparing it to a previous controversy involving loans to Manchester City's ownership. Conservative local government spokesman Katie Lam stated, "First, it was the Manchester City fiasco, now this. Is it another case of 'lunches for loans'? The questions about Andy Burnham's judgment are just not going away."
Further scrutiny has focused on FEC's leadership and business dealings. FEC's boss, David Chiu, served as vice chairman of the CCP's state chamber of commerce from 2017 to 2022 and has been a member of an influential advisory body connecting businesses with the state since 2013. FEC's primary building contractor for a major Manchester project is wholly owned by Zhejiang Construction Group, a firm state-run by the CCP. Additionally, Duncan Chiu, the chief executive's brother, is a politician on the Hong Kong Legislative Council.
Critics, including Tory culture spokesman Louie French, have questioned the allocation of taxpayer money to an international company reporting over £500 million in annual revenue. French remarked, "This raises even more questions about Andy Burnham's chumocracy in Manchester and how he was using taxpayer's money."
Downing Street has declined to comment on the matter. The Greater Manchester Combined Authority defended the mayoral international visits, stating they are a "established part of Greater Manchester's approach to promoting the city region internationally" and are undertaken when there is a "clear business case, with costs kept proportionate."