Newham Borough of East London has admitted that a £40 million loan that was used to help build to Olympic Stadium may now never be repaid, reports the Evening Standard.
The London Borough had previously hoped to recoup the money, however after the poor financial performance of the venue, have now reportedly given up hope of ever seeing the money again.
A spokesman for Newham said: “The loan is shown, for accounting purposes, as currently ‘impaired’, or damaged, due to the current financial performance of the stadium. It is not a write-off of the loan… it was widely anticipated that the first full year of trading would be particularly challenging.”
The stadium has been surrounded by controversy ever since West Ham United were given a £2.5 million a year, 99-year deal to use the Stadium. Both the government and the club have already come under criticism for preventing funds intended for charities being reallocated where needed.
Newham is one of London’s and the country’s most deprived Boroughs, and residents and councillors alike are becoming increasingly concerned that their money has been wasted.
“Newham council is working with the Greater London Authority, the London Legacy Development Corporation and our other stadium partners on a range of options to improve the financial performance of the stadium. The future value of our loan, and its treatment in our accounts, is directly linked to that future performance.”
