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Central: finance probe

1st December 1988
Page 12
Page 12, 1st December 1988 — Central: finance probe
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Which of the following most accurately describes the problem?

• A company accused of trying to "hoodwink" West Midland Licensing Authority John Mervyn Pugh is to be investigated by a Department of Transport financial assessor.

Central Roadways had applied to renew its international licence for 10 vehicles and five trailers but Mervyn Pugh adjourned the hearing to allow the DTP's assessor to look into the company's affairs.

Central has been given 14 days to produce three years' accounts and bank statements, together with an up-to-date list of creditors and debtors.

In May the Brierley Hillbased company's licence was renewed until September only after the Road Haulage Association expressed concern about the operation of untaxed vehicles.

For Central Roadways, Paul Shaw said that the company had been told that the licence would not be renewed if there were any further convictions.

Unfortunately, the company had been convicted in October

of one offence of using an untaxed vehicle and 01 11 offences of failing to produce tachograph records, being ordered to pay fines, costs and back-duty totalling .£3,477.49. (CM 20-26 October). Those convictions related to offences which had been commited before the last public inquiry on 10 May.

Asked why he had not disclosed the pending prosecutions when he had been interviewed about the matter the day before, Central Roadways director George Atterbury said he had not been aware that the company was to be prosecuted. Atterbury conceded that the magistrates had agreed that the £3,477 could be paid at £400 per month after being told the company could not afford to pay it at once, but claimed that the money could have been paid straight away. It had not wanted to, said Atterbury, as it would have to have paid it out of overdraft.

In reply to Mervyn Pugh, Atterbury said the company had an overdraft facility of £20,000 and was currently g9,500 overdrawn.

The financial information submitted with the application had been prepared by the company's accountants.

Atterbury admitted that some of the information it contained was incorrect.

Mervyn Pugh said that someone somewhere was trying to pull the wool over his eyes. The wages figure given was £22,000 yet that shown in the draft profit and loss accounts was £104,403. He also told Atterbury that Central Roadways had "hoodwinked" him by not disclosing the traffic examiner's visit at the last enquiry.