Andy Burnham was last night accused of exchanging 'lunches for loans' with China after lending £100million of taxpayer cash to a firm with close links to the Chinese Communist Party.
The Mail on Sunday can reveal Mr Burnham approved a series of loans to the China–controlled 'Far East Consortium' (FEC) when he was Manchester mayor after accepting hospitality from one of its commercial partners.
The cash was handed out between 2021 and 2026 – the interest rate remains a secret. It followed his visit to China in 2018, aimed at boosting trade.
The £4,796 cost of flights, hotels and lunch was covered by the Manchester China Forum, a public–private partnership set up by George Osborne in 2013 to boost trade links. It is a 'corporate partner' of FEC.
The revelation comes after he was criticised for taking two free dinners from Manchester City's chairman before handing them £55 million in loans.
Last night Katie Lam MP, Tory local government spokesman, said: '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.' FEC's boss David Chiu was vice chairman of the CCP's state chamber of commerce from 2017 to 2022.
He has also sat on a highly influential 'advisory body' between businesses and the state since 2013.
Andy Burnham approved a series of loans to the Far East Consortium (FEC) between 2021 and 2026
FEC's main building contractor for its flagship project in Manchester is wholly owned by the Zhejiang Construction Group – a CCP state–run firm.
And the chief executive's brother, Duncan Chiu, is a politician on the Hong Kong Legislative Council.
Critics say the loans followed a similar pattern to those handed out to the Abu Dhabi owners of Manchester City and which, as revealed by the MoS, Housing Secretary Angela Rayner is being urged to investigate.
While there is no suggestion of wrongdoing by FEC, critics have questioned why taxpayers' money should be given to an international company which makes more than £500million a year.
Tory culture spokesman Louie French said: 'This raises even more questions about Andy Burnham's chumocracy in Manchester and how he was using taxpayers' money.'
No10 declined to comment. Greater Manchester Combined Authority said: 'Mayoral international visits are an established part of Greater Manchester's approach to promoting the city region internationally.
'Visits are undertaken where there is a clear business case, with costs kept proportionate.'
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