Notice: bp_setup_current_user was called incorrectly. The current user is being initialized without using $wp->init(). Please see Debugging in WordPress for more information. (This message was added in version 1.7.) in /var/www/vhosts/swns.com/httpdocs/wp-includes/functions.php on line 3370 Council that campaigned against payday lenders has invested in WONGA : SWNS

Council that campaigned against payday lenders has invested in WONGA

March 17, 2014 | by | 0 Comments

A council has denied double standards after campaigning against payday lenders – while investing in one themselves.

Officials on South Tyneside voted last week to introduce a series of measures against the controversial firms who charge huge interest rates.

Action includes blocking access to their websites from council computers and lobbying to stop them setting up businesses in their area.

But the same council has £233,000 of its pension fund invested in shares in Wonga – one of the biggest payday lenders.

Council leader Allan West said legal regulations prevented the authority, which runs the pension fund on behalf of four other North East councils, cutting its “indirect” ties with Wonga.

He said: “Case law and local government pension scheme regulations specifically require the fund to seek the best possible return on its investments and only allow us to consider social and ethical issues when they have a financial impact.

“The Pension Fund has no direct investments in payday lenders, but does have a very small indirect holding via Pooled Investment Vehicles as part of its global private equity programme.”

Mr. West said the money invested in Wonga amounted to around 0.005 per cent of the pension fund’s total value.

Category: News

Add your comment

Libellous and abusive comments are not allowed. Please read our House Rules

For information about privacy and cookies please read our Privacy Policy

Warning: Missing argument 1 for TouAppController::comment_terms(), called in /var/www/vhosts/swns.com/httpdocs/wp-content/themes/wp-clear/comments.php on line 136 and defined in /var/www/vhosts/swns.com/httpdocs/wp-content/plugins/terms-of-use-2/classes/controllers/TouAppController.php on line 383