The Newtownabbey Councillor said: “What sort of country do we live in where victims are losing funding and their voices are ignored yet loyalist terrorists are demanding millions as a retirement package.
“The Government have got a lot of explaining to do – the prospect of money going from a good cause into the coffers of unreconstructed terrorists is sickening.
“The backdrop to this sickening story is that the IMC stated that they believe the UVF sanctioned the murder bid on Mark Haddock only a few months ago. The recent IMC report also stated that loyalist terror organisations are still involved in criminality and gangsterism.
“If the government gives loyalists a payoff, it will be the taxpayers who foot the bill for it. Loyalism must never be allowed to hold the taxpayers of Northern Ireland to ransom.”