Expenses shame of Co-op chief: Flowers quit charity over '£150,000 false claims' yet was still put in charge of bank that loans millions to Labour

 

Deepening scandal: Paul Flowers quit a charity amid allegations that of £150,000 in false expenses claims

The scandal surrounding former Co-op Bank chief Paul Flowers deepened last night after it was revealed he quit a drugs charity over allegations of up to £150,000 in false expenses claims.
The Methodist minister – under police investigation for buying crystal meth and crack cocaine – was suspended by the Lifeline Project after allegedly lodging ‘significant’ false claims between 1992 and 2004.
The Manchester-based charity conducted a full investigation, but former Co-op chairman Flowers, who was its chairman of trustees, resigned before its conclusion.
Last night, charity chief executive Ian Wardle confirmed the Charity Commission was informed of the findings but it is not thought any action was taken.
Mr Wardle described the money as a ‘significant sum’ which required a ‘lengthy and thorough investigation’.
The revelations will only reinforce concerns that City regulators, the Co-op board and Labour failed to adequately investigate the past of the drug-taking minister who was once invited to Ed Miliband’s office for private talks.



As Labour insisted the affair was a ‘desperate political distraction’, it was revealed:

• Labour had received more than £18million in ‘soft loans’ from the Co-op Bank – some at interest rates far lower than the deals the bank offers its own customers.
• Two £1.2million loans were made to Labour by the Co-op and Unity Trust banks just weeks after the meeting in Miliband’s office.
• Government sources said the bank will be the subject of an independent inquiry within days.
• Flowers was made chairman of governors of a primary school after he resigned as a councillor when pornographic images were found on his council laptop.
• Bradford City Council was under pressure after it emerged no one told Labour Party headquarters about the X-rated adult images.
• West Yorkshire Police have searched the disgraced minister’s home in connection to the drugs allegations.

Flowers was last night still in hiding – three days after it was revealed he paid £300 for Class A drugs during a deal captured on film.

Investigation: Police at the home of disgraced Mr Flowers today - he is being investigated by police for allegedly buying crystal meth and crack cocaine

He lodged the expense claims during his voluntary tenure at the Lifeline Project – a charity providing services for those with drug and alcohol addictions.
A charity insider said Flowers claimed an astonishing £150,000 between 1992 and 2004.