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Subcontractors wait for M&M

16th July 1992, Page 16
16th July 1992
Page 16
Page 16, 16th July 1992 — Subcontractors wait for M&M
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Which of the following most accurately describes the problem?

• Magnet Kitchens is examining its former relationship with haulier M&M Transport, partowned by John Dee Ltd finance director David Soley, following claims of unpaid debts.

The kitchens supplier is looking at records of jobs performed by owner drivers sub-contracted by M&M. The drivers say they have had to wait as long as eight months to be paid.

Magnet, which formerly subcontracted work via John Dee to M&M, says: "There are various investigations underway — we have been given information which we are considering against our internal quality control procedures."

Magnet stresses that M&M is no longer doing its work: It's more than three months since we allowed our sub-contractors to use them," says a spokesman. "You can interpret that as you wish."

Owner-driver Stephen Hann of Hartlepool, who trades as S and G Light Haulage, says M&M owes him £3,000 for work completed five months ago. "I put all my eggs in one basket," he says. "and now my house is on the line."

Reg Langstaff, of C Johnson Transport in Middleton St George, Durham, is also trying to extract payment from M&M. "I have been owed about £1,500 since the beginning of November," he says. "I'm very angry, because the agreement was that we'd be paid within two weeks of the job."

David Soley is a director of Ramscove, which trades as M&M Transport. He has been financial director of John Dee since January, when he was brought in to satisfy the conditions for the company to be granted a new 0-licence.

Soley says he is taking legal advice over Hann and Longstaff's claims — he believes that they owe M&M money. When asked what the money was owed for, he said he could not add any more at this stage.

Asked about Magnet's investigation, Soley says: "There has been some discussion; the matter should be resolved this week."

John Dee has issued a statement saying: "M&M was one of a large number of sub-contractors employed by John Dee ... but our association with that company ended some months ago."

John Dee will soon re-apply for a new 0-licence, which was previously refused by the Transport Tribunal because the company did not have an experienced financial director at the time (CM 25 June-1 July).