CAPITA employs more than 1,000 people in the North-East, the majority of them in Darlington - making the systems company one of the town's biggest private employers.

Almost 50 per cent of the company's contracts are with the public sector and it has landed a number of highly lucrative contracts under the Labour Government. Together, these contracts are worth more than £1bn.

So when it emerged the company's millionaire boss, Rod Aldridge, was one of the rich moneylenders who had loaned Tony Blair's Government a total of £14m, Capita came under the spotlight.

The company is an information technology (IT) specialist and administrates services such as pension schemes, council tax collection and TV licence fees.

The company has offices at more than 200 sites in the UK and employs tens of thousands of people. In 2003, it was named company of the year in the Royal Bank of Scotland/Sunday Times business awards.

Capita's offices in Mowden Hall, Darlington, administer the Teachers' Pension Scheme, the second largest pension scheme in the country. The Civil Service Pension Scheme is also administered from the building. This section of the company is called Capita Hartshead.

Capita has a second base in Lingfield Point - where among other roles, staff handle orders and inquiries for the Royal Mint.

The company also has bases in Durham and Newcastle.

In Durham, Capita Symonds, based at the Belmont Business Park, supplies experts in building design, civil engineering, environment, management and transport.

Capita Education Resourcing has a base in Newcastle. This leg of the company co- ordinates lists of supply teachers, lecturers, support staff and nursery nurses.

Since the Labour Government came to power in 1997, the company has won a handful of lucrative contracts.

These include:

* A contract to administer the Teachers' Pension Scheme, renewed in 2003 and worth £62m over seven years.

* A ten-year contract worth at least £500m to administer the BBC TV licensing service.

* A five-year contract worth £250m to administer London's congestion charging.

* A contract worth more than £400m to provide the IT infrastructure and business processes for the Criminal Record Bureau.

Yesterday, a Capita spokes-person said Mr Aldridge's £1m loan had come from his personal money. He said Mr Aldridge was a member of the Labour Party, the loan was commercial and was due to be repaid back within a year with interest.

Mr Aldridge is one of 12 wealthy backers who together lent the Labour Party almost £14m in the run up to last year's General Election.

Last year, Capita's profits leapt by 19 per cent to £177m. Mr Aldridge earned £2.2m