Rod Aldridge, the executive chairman and founder of outsourcing firm Capita, is leaving the company in the wake of the Labour loans scandal.
Labour-supporting Aldridge loaned the party £1m and his name was linked to money-for-peerages allegations in the press. There have also been claims that his support for Labour could have been linked to his company winning large government contracts.
Aldridge said he would be leaving Capita once it had posted its interim results this July. The company, which Aldridge founded in 1984, is now looking for a successor.
Aldridge said, “As founder and chairman I have always seen it as my role to ensure that the group enjoys the highest possible standing and operates with total integrity.”
He said, “At present, the group's reputation is being questioned because of my personal decision to lend money to the Labour Party. As I have made clear, this was entirely my own decision as an individual, made in good faith as a longstanding supporter of the party.
“There have been suggestions that this loan has resulted in the group being awarded government contracts. This is entirely spurious.
“Whilst anyone who is associated with the public procurement process would understand that this view has no credibility, I do not want this misconception to continue, as I remain passionate about the group's wellbeing.”
Aldridge will now immediately become non-executive chairman of the company, before leaving once Capita’s results are out.
He said he would instead concentrate on his work in the voluntary sector and through his charitable trust.
Aldridge was one of 12 donors who lent the Labour party a total of almost £14m before the last election. The donors were originally not named as the monies paid were loans and not donations. But the list became public after it became known that some of the donors were in line for a peerage.