ICSM Business News: the mind bogglingly high sums fraudulently claimed in Covid support loans as a director of a print related company is nicked for claiming £50K

ICSM Business News: the mind bogglingly high sums fraudulently claimed in Covid support loans as a director of a print related company is nicked for claiming £50K

By Harry Mottram: Depending on who you believe fraudulent Covid support claims could be as high as £17 billion pounds and rising once lost interest and inflation is taken into account. The £17bn figure is from the Government’s own National Audit Office and includes not only fraudulent applications but also legitimate businesses that defaulted on their loans after becoming insolvent.

It comes as the print industry online publication Print Week’s Jo Francis reported on a packaging supply Bradford firm’s director Juiliano Akeel Hussain who claimed £50,000 for his Rupert Design & Packaging business set up in 2019. The Insolvency Service smelled a rat since the firm’s turn over didn’t match Hussain’s claims and especially when he also asked for further loans of nearly £100,000 for a related business. Again, the sums didn’t add up and The Insolvency Service prosecuted the businessman. He was disqualified from being a director for 13 years reported Jo Francis. She said: “The Insolvency Service also said that he had failed to evidence or satisfactorily explain what had happened, and had not preserved or delivered adequate accounting records.”

Ian Carrotte of ICSM – the business credit intelligence membership group – said the Government created a fraudsters’ charter with the Covid support loans as the banks who administered the loans were not liable if they were not repaid. He said: “I accept the Government had to act fast to help industry survive Covid but they could have put more responsibility onto the banks instead of the taxpayer having to pick up the tab for fraud. It’s been another example of how Covid has cost the country huge sums of money which have to be written off. Governments like to lecture businesses on how to run – but this is another case of mismanagement in Whitehall and Downing Street.”


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