A GROUP of MPs was told that £1million of two loans to previous Bury Football Club owner Stewart Day did not go the club.

The House of Commons Digital, Culture, Media and Sport Committee was taking evidence yesterday on the expulsion of the Shakers from the English Football League in August.

The MPs heard that Mr Day mortgaged the club's Gigg Lane ground with Merseyside-based Capital Bridging Finance Solution Ltd for £2.5m at an interest rate of 138 per cent.

Barry Roth, an accountant and former director of supporters group Forever Bury, said only 60 per cent of those loans (£1.5m) 'actually went into to the club's bank account'.

The other 40 per cent (£1m) was paid as an 'introductory fee' for arranging a lower rate of interest for the loan of 7.5 per cent.

Mr Roth was asked by committee chairman Damian Collins who was the beneficiary of the £1m introductory fee.

He replied: "We don't know."

Mr Roth said he found this introductory fee 'unbelievable'.

Mr Collins, who is to visit Bury on Friday as part to the inquiry into the administration of football clubs, said: "Let's call this loan shady at best. The ground was effectively sold to this company.

"There were people who were profiting in a exorbitant manner from the failure of this club.

"There are people who have made money from the failure of this club."

Mr Roth agreed saying: "Oh yes."

Mr Collins said the committee would use its powers to ask for a copy of the so far unpublished 2018 accounts for Bury FC.

Mr Collins than asked Mr Roth: "Is there any suggestion that there is any connection between Capital Bridge who made the loan and the directors of he club?"

He replied: "I have reason to believe that a former director of Bury is the brother-in-law of Mr Paul Dalton who is the sole director of Capital Bridge."

The committee hearing on Monday heard how after Mr Day sold the club for £1 to Steve Dale it stopped paying its 50 staff and standing orders and direct debits to local suppliers who are owed around £2.4m.

Matthew Dunham, the insolvency advisor to Forever Bury who have been involved with efforts to save the club, said: "Some of those businesses will go to the wall."

Tom Greatrex, vice chairman of the Football Supporters Association, told the committee that he felt the collapse of Bury FC was 'a real wake-up call'.

Mr Dunham said: "I would be surprised if other clubs don't fail over the coming few years."

But Debbie Jevans, executive chair of the English Football League, said: "I think Bury was a unique situation."

And she told the MPs that an independent review into the collapse and expulsion of the club by lawyer Jonathan Taylor was aimed at ensuring it remained a one-off.

The club now faces probable liquidation by the end of the month despite a winding up petition brought by HMRC in the High Court being adjourned until October 30 last week.