Co-Op: Paul Flowers' Home Searched By Police

Police have searched the home of former Co-operative Bank chairman Paul Flowers.

Mr Flowers, a Methodist minister who led the bank for three years, is under investigation after being filmed allegedly buying and using illegal drugs including crystal meth, crack cocaine and ketamine.

A West Yorkshire Police spokesman said: "Officers executed a search warrant at an address in Hollingwood Lane, Great Horton (Bradford), yesterday as part of an investigation into alleged drugs offences arising from a national Sunday newspaper story."

Reverend Flowers has already apologised for doing things that were "stupid and wrong" in relation to the drugs claims - but has not elaborated.

The Mail On Sunday filmed Mr Flowers allegedly buying drugs

Labour Party leader Ed Miliband is also under pressure over when he and shadow chancellor Ed Balls knew that Mr Flowers had resigned as a councillor in Bradford after adult material was found on his computer.

In a letter to Mr Miliband, Conservative Party chairman Grant Shapps wrote: "Was your shadow chancellor, Ed Balls, aware of this when he accepted £50,000 to fund his personal office?

"When you met Mr Flowers on 6 March, 2013, did you discuss the £1.2 million loan agreement that the Labour Party entered into with the Co-operative bank, just weeks later?"

There are questions over what Ed Balls knew about Mr Flowers' resignation

Mr Shapps also challenged Mr Miliband to give details of his private meetings with the minister and explain what advice the former Co-op chairman gave as a member of Labour's business advisory group.

Mr Flowers has also been accused of incompetence and resigned his post as chair in June after a £1.5bn black hole was discovered in its finances.

The bank found a massive gap following the purchase of Britannia Building Society in 2009 and abortive attempts to take on hundreds of Lloyds branches.

It now faces a rescue which will see 50 branches close and investors including US hedge funds take control of 70% of the business.

Mr Flowers was criticised for a stumbling performance in front of MPs

During an appearance before the Commons Treasury committee earlier this month, Mr Flowers stumbled over basic facts and figures relating to the bank.

He was also pressed on whether he had approved the £50,000 donation to Mr Balls while a member of the bank's board.

"My recollection is that we paid for a particular researcher to assist the shadow chancellor in the work that he needed to do, and that we believed to be a legitimate and proper use of resources," he replied.

A spokesman for Mr Balls said: "The Co-op Group, not the bank, donated £50,000 to the shadow chancellor's office, which was declared in the normal way at the time.

"Ed (Balls) has never discussed the donation with Paul Flowers. Ed's been to a few events which Rev Flowers has also been at, but he's never had a meeting or phone conversation with him."

Co-operative group chairman Len Wardle has resigned over the scandal

Mr Flowers resigned from Bradford Council in September 2011, saying it was due to personal reasons and increased responsibilities at the Co-op.

But a spokesman for the council said: "Inappropriate but not illegal adult content was found on a council computer handed in by Cllr Flowers for servicing. This was put to him and he resigned immediately."

It has also emerged that the Methodist minister was convicted of gross indecency in 1981, reportedly over a sex act in a public toilet.

A church spokesman said that at the time he went through the "usual procedures" before being allowed to continue in his role.

The scandal surrounding Mr Flowers has also led Co-operative Group chairman Len Wardle to resign.

Mr Wardle brought forward his plans to retire by six months, acknowledging that he led the board that had appointed Mr Flowers.

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