The leader of Northampton Borough Council has confirmed there will be an independent investigation into how the authority managed a £10.25 million loan to the Cobblers.
Councillor Mary Markham also confirmed she is “continuing to work with Northamptonshire Police” to find out what happened to the money after it was loaned to the football club.
Councillor Markham made the announcements in the last few minutes following a meeting with the council’s external auditor from the firm KPMG LLP.
The company has been appointed to look through the books of Northampton Town Football Club and is expected to produce a report of its findings in the coming weeks.
Councillor Markham (Con, Park) said: “We have met with our external auditors, KPMG LLP, today and understand that they intend to investigate how the borough council managed the loan to Northampton Town Football Club and to prepare a public interest report.
“We wholeheartedly welcome this investigation, which will look into our governance arrangements for approving and managing the loan and its repayment.
“KPMG has the right to issue a public report after their independent investigation, and the council would support any such decision to do so.
“If there are any weaknesses in the way that this matter has been handled, I am determined that we will identify them and ensure they are not repeated in the future.
“Alongside this investigation, we continue to work with Northamptonshire Police on understanding what has happened to the money and if a formal complaint can be made to them, we will do so.”