West Brom confirm independent investigation into 2014 Jeremy Peace loan
West Bromwich Albion have confirmed the launch of an investigation into the historic loan taken against the club by former owner Jeremy Peace eight years ago.
The club's minority shareholders, Shareholders For Albion (S4A) had previously revealed the club are looking to fund a probe into the £3.7 million loan Peace took out in 2014.
And following lengthy talks between the club and S4A, an independent investigation has been set to begin in the new year and could take up to six months to review findings.
Peace borrowed the sum against the club and into his own company, WBA Holdings, in 2014. Current majority shareholder Guochuan Lai inherited the debt, with interest now exceeding £1m taking the monies owed in the region of £5m, when he purchased Albion in 2016.
It was claimed by S4A that former chairman Peace may have used the loan to WBA Holding to assist in purchasing increased shares in WBA Group, the club's parent company.
Peace's shares increased from 65 per cent to 88 per cent in 2014. Peace claimed the move was 'completely advantageous' to the club.
Chief executive Ron Gourlay, upon his appointment at the club earlier this year, revealed he was consulted by S4A, who represent 430 minority shareholders, to launch a review and investigation into the loan.
Gourlay gave the green light in May after the club had previously turned down investigation requests.
A terms of reference document has now been signed and a barrister from the King's Counsel has been assigned to oversee and produce a report.
Gourlay said: “When I joined the club in February, I was asked by Shareholders for Albion to investigate the 2014 loan, and we have since worked with the group to agree the terms of reference for an independent investigation.
“I am confident the appointed King’s Counsel barrister will compile a thorough and detailed report which, whatever the outcome, will help us to move forwards in the best interests of the club.”
The loan is separate from the cash taken out the club by Chinese businessman Lai made in March 2021 and revealed in the club's accounts that were published in the summer of this year.
Those documents showed the owner took out £4.95m the previous year to a business related to Lai, Wisdom Smart Corporation Limited.
Lai, who has been absent from the club and who Baggies fans have protested against this season, has already missed one loan repayment deadline and the next deadline is approaching and set for December 31.
