Capita Chairman Aldridge Resigns Over Labour Loan

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Ron Aldridge today became the first victim of the Labour loans scandal. 

He resigned after 22 years as executive chairman of Capita Group Plc, saying that the company’s “reputation is being questioned because of my personal decision to lend money to the Labour Party”.

Aldridge, 56, added “There have been suggestions that this loan (£1 million) has resulted in the group being awarded government contracts. This is entirely spurious.”

Capita, the U.K.’s biggest supplier of administrative services, in February reported a record annual profit after the London-based company renewed contracts and won new business, including orders from the Government.

The company manages payments for London’s congestion charge that drivers pay for using central streets. Capita, which also collects television license fees for the state-owned British Broadcasting Corp. and works with companies such as Alliance & Leicester Plc, has won four contracts worth £360 million pounds this year, including one with the Department of Trade and Industry and a 10-year human resources project with the BBC.

Some newspapers have reported that in recent years  Capita has gained Government contracts worth more than £2.5 billion.

Aldridge, who will become non-executive chairman until the end of July, has led Capita since its formation in 1984 within the Chartered Institute of Public Finance & Accountancy (CIPFA). In 1987, he headed the management buyout of the business from CIPFA and Capita became a public company listed on the London Stock Exchange in April 1989.

Prior to Capita, Rod worked in local government for ten years at East Sussex County Council, West Sussex County Council, Brighton Borough Council and Crawley District Council. In 1974, he joined CIPFA where he was the Under Secretary with special responsibility for technical services.

He was awarded an OBE in the 1994 New Year’s Honours List and was given the Freedom of the City of London in March 1996. He is a Trustee of the Prince’s Trust and a Board member of The Prince’s Trust Trading Company.

Thanks for reading Big Business

David Davis
www.writer4business

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