Another twist to the ongoing controversy surrounding the financial dealings of out-of-school provider Catz Club has emerged after it was revealed that the charity that runs more than 100 breakfast, out-of-school and holiday clubs has had more than £840,000 in Government loans written off.
Catz Club, whose working name is Schoolfriend etc, is being investigated by the Charity Commission for making illegal donations to the Labour Party (News, 8 January).
In 2005, the charity received a £1.3m loan from Futurebuilders (FBE), a Government fund overseen by the Cabinet Office, which helps the voluntary sector run public services.
In a parliamentary answer last month, children's minister Kevin Brennan confirmed that the loan has been written off.
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