CrackiUg down on insolv,my scams
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• Hauliers vhho go to the wall are less likely to fall into the grasp of crooked insolvency practitioners, thanks to tougher policing of the law governing insolvencies.
This follows an eight-month Department of Trade inquiry. Shocked by the poor level of compliance with insolvency law, the DTi has pu hed the Institute of Chartered A countants and other insolvency bodies to pool resources to monitor their own members, joint insolvency monitoring o dy is expected to be in action 'thin months.
Crooked oractitioners have been known to break the rules, for example, over the way assets are parcelled out to non-preferential credito When a haulier goes into li I uidation a corrupt practitioner ould also sell assets at a knock-down price to a staff member, al owing the cheap launch up of : new business.
Accordin: to accountant Touche Ross there were 85 road transport fai ures last year, compared with 1 during 1991.