The biggest creditor is Revenue and Customs who are owed a cool £245,611.57, for unpaid tax, national insurance contributions, corporation tax and VAT.
The company which took over £275,000 from the council taxpayers of the Tory borough to provide security and was used by the council leader, Lynne Hillan, to enforce a ban on bloggers filming or reporting the council’s big cuts meeting, could have been involved in tax avoidance.
The break down of the figures show that over £139,000 owed is in PAYE and national insurance contributions and another £99,000 is VAT.
Employees are also owed over £21,000 in unpaid wages – and are top of the list to receive £8800 in payments if any money can be raised.
The two directors of the company Kevin Sharkey and Luigi Mansi have put themselves down as creditors – saying they are owed £92,500 for loans they gave to the company. Other unpaid debts include £3400 to their accountants, Bond Partners, the address where the company was last registered and a £4972 credit card debt to Barclaycard.
Total debts are over £400,000 while assets are just three motorcycles valued at £11,850; computer and office equipment worth £475 and security uniforms worth £1400. As a job lot Mr Solomon estimates he could sell them for £6000 plus a goodwill sum of £13,500 for anybody wanting the business.
The scale of the scandal raises questions about the due diligence employed by Barnet Council in appointing them in the first place, particularly as records show that voluntary liquidation involving the same directors has happened before. There could be a case for an investigation if a complaint was made to the district auditor about how the council tendering procedures handled their original appointment.
Since Barnet have been unable to answer a lot of questions from the public about this whole unhappy saga – may be they will feel they have to co-operate with auditors. Or may be not.