Thursday, 29 March 2012

CWaC Council leader's company liquidated with £250,000 debts

Further to my earlier posts on the subject

12th August 2011: Mike Jones, Leader of CWaC Council & ASC (Developments) Chester Ltd Updated 28th February and 5th March 2012.

8th March 2012: Council leader's company, ASC Developments (Chester) Ltd, to be liquidated

14th March: CWAC Council leader confronted by angry businessmen at executive meeting

6th April 2012: Full list of 59 creditors added (Its a wonder only two attended the executive meeting)

15th April 2012: CWaC Council payments to ASC Developments (Chester) Ltd and ASC Developments between May 2011 and February 2012 added below full list of creditors.

Following the creditors meeting it is has been established that CWaC Council leader Mike Jones’ liquidated firm ASC Developments (Chester) Ltd had debts totalling £250,000.

HM Revenue and Customs owed £80,945
Employees owed £64,884 for redundancy and holiday pay
Suppliers and sub-contractors owed £50,211
Nat West Bank, in Eastgate Street, owed £34,711.
The Nat West debt is secured against units, from where ASC operated, which transferred to associated company Hargrave Properties Ltd in 2007.

Last June ASC survived a winding-up petition raised by HMRC after a settlement was reached. At the time Cllr Jones believed trading conditions were about to improve but this proved too optimistic.

The final blow was when ASC lost a national contract for housing maintenance with effect from April 1 this year.

My comment: Contrary to what Cheshire West and Chester Council suggest this is not just a personal matter. Cllr Jones is on record stating "I AM DEALING with the council finances as I would as a business", as a result residents have every right to be concerned about the liquidation of his own business with such horrific debts.

Was he also overly optimistic with Council finances? Why was the Council paying two different ASC companies, or one with two supplier codes? There are many questions that need answering before residents will accept the Councils assertion that this is a private matter.

Read the full story from the source Chester Chronicle

No comments:

Post a Comment

Please note all comments are moderated and will not be published unless they are relevant to the post in question and do not contain statements or links to material which could be considered defamatory.