A former chairman of the Manx Electricity Authority says legal moves by Treasury to force the MEA to hand over financial data were born of personal jealousy.

John McCallion was giving evidence to a Tynwald select committee yesterday when he made the allegation.

The five-strong committee is looking into the affairs of the MEA leading up to it taking out ?120 million in unauthorised loans.

He said a Treasury directive sent by the then chief financial officer Mary Williams was designed to scupper a rival who had applied for a job she wanted.

Jason Roberts reports (text, below, from attached audio file):

Mr McCallion claimed Mary Williams saw MEA chief executive Mike Proffitt as a threat as she applied for the post of chief secretary in the government.

He said the directive had been sent so she could look efficient and effectively bring down Mr Proffitt, despite evidence she had been acting on the instructions of Treasury politicians.

Mr McCallion also claimed there was bad feeling between the Treasury and MEA because the government envied the authority’s success in building Pulrose power station.

He dismissed suggestions anything untoward had been going on at the authority and said Treasury should have found out about the ?120 million loans through Island gossip.

The committee will continue taking evidence in July when other former MEA board members will appear.