Former Chief Minister Richard Corkill says he was misled by the chief executive of the Manx Electricity Authority over ?120 million in unauthorised loans.

Mr Corkill (pictured) was giving evidence to a Tynwald select committee this morning about the MEA’s business dealings during his time both as Treasury Minister and Chief Minister.

He said he’d asked Mike Proffitt at the authority about a ?185 million loan taken out to fund the Island’s new power station.

Mr Profitt told him there was still ?10 million left – but the authority had already borrowed an extra ?70 million the government didn’t know about.

This morning, facing questioning about when the government knew of the unauthorised loans, Mr Corkill said he’d met Mr Proffitt to talk about plans to invest ?10 million in wind power.

He said Mr Profitt had told him there was enough left over to pay for the scheme but Mr Corkill later learned the money was gone and the MEA had borrowed ?70 million from Barclays.

And a day later the MEA completed another ?50 million in loans from the bank.

Mr Corkill said he’d been convinced the MEA board had all been honourable people doing their best for the Island – but admitted feeling disappointed with them after the loans came to light.