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Haulage 'kick-back' allegations

24th October 1975
Page 17
Page 17, 24th October 1975 — Haulage 'kick-back' allegations
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Which of the following most accurately describes the problem?

Keywords : Pownall, Haulage

A BARKING haulage firm's European traffic and shipping managers took " kick-backs " to pass inflated and phoney sub-contractors' invoice sheets, an Old Bailey judge was told on Tuesday.

And work which the firm could have done itself was passed on to other concerns in exchange for "commission," said Mr Henry Pownall, prosecuting.

Eventually, the boss of White Oak Transport Services found invoices which he could not reconcile with the books. "It was merciful he did because if the matter had gone on he would have been in financial trouble, though he thought he had what was a successful business," Mr Pownall told the court.

In the dock were : Terence Webb, 33, of Aldred Road, Kilburn; Keith Walder, 27, of Steeple Hall, Pitsea, Essex; Barry Flexen, 33, company director, of Chestnut Avenue, Buckhurst Hill, Essex; David Smith, 28, transport manager of Judeth Gardens, Gravesend; Thomas Flexen, 55, company director, of Carlton Road, South Park, South Godstone, Surrey; and David Flexen, 27 • of White Gables, East Grinstead, Sussex.

Webb and Walder admitted conspiring to defraud White Oak Transport and five charges of corruptly accepting a total of £1,537.

Barry Flexen and Smith admitted two charges of corruptly giving Webb and Walder rewards totalling £750, and Thomas Flexen and David Flexen admitted two charges of corruptly giving the two men rewards totalling £777.

Mr Pownall said White Oak Transport had operated in Britain and in Europe under directors Mr and Mrs Colin Williams, "thoroughly upright and honest business people."

Part of its operation in cluded carrying loads in the company's own transport, but most of the work was subcontracted. The sub-contract ing .side was handled "almost exclusively" by Webb, the man in charge of European operators, and Waller, the shipping manager. It 'involved agreeing a rate with the subcontractor who would carry the goods, with White Oaks' profit coming from the difference.

Smith and Barry Flexen were directors of Sea Road Services (Europe) Ltd, based at Grays, Thurrock, and Thomas and David Flexen, father and son, were directors of Containemlasters Ltd, of Bermondsey.

Counsel said that early last year Webb and Walder agreed with their co-defendants to defraud their employers.

One method was to pass invoices for payment for carry ing goods when the journeys had never taken place. Another was to " quite deliber ately and dishonestly" pass invoices with inflated rates after agreeing with the subcontracting firm that the payments should be raised.

Payments were also obtained, said Mr Pownall, for plac ing work With certain firms. It was work which White Oak Transport could have done itself.

The hearing was continued.


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