Hallmarked WBC

New-WBC

The latest forensic examination performed by whistleblower Nigel ‘Highbrow’ Hobro on the BIG fund debacle is set out below.

Try and stay with the technicalities and complexities as it demonstrates the effort and commitment that whistleblowers have to go to evidence their concerns. Such effort and commitment is of course totally inexplicable to the powers that be at Wirral Council.

As a matter of interest our view on the question posed in the final line of the article is that the powers that be just want the titles and the money to sustain their egos . And they want to do it with the least possible effort. Those who want things ‘done properly’ are to be swatted away like irritating midgies. All the ‘midgies’ can do is too continue to get under their skin……..
I have just completed a review of my penultimate audit sample of BIG fund files. When I get the Data Commissioner’s order for WBC to release the Merseycare Transport ltd BIG fund file I will, as any proper auditor ought, have selected a sample of 20% of all BIG fund files. It is incumbent on any auditor to increase his sample where a random sample-the original 6- is found to be entirely deficient, as it was.

I am of course unpaid and have had to battle with a reluctant, and indeed deceitful Council and officers seeking to cover over the inadequacies of its staff and systems in the years 2009 to 2012.

What strikes me is that these officers never demanded original Excel files, or indeed created them from pdf’s. I had to recreate the Excel file so as the better to analyse its shortcomings from indistinct copies of pdf’s. However if this did not, and it did not, demand much of my time, then how much easier it would have been back in 2009-2012. Why did these officers not test these Budgets as so easily they might have done by recreating them on Excel. Grant Thornton in their report indicated that no sensitivity analysis had ever been done for which read my comment above. You can only readily flex budgets if you have them on Excel! What ifs, and, does the Cash flow and the Profit and Loss gel?, are questions answerable if the data is on Excel. My first test was to “Excelise” and place Profit and Loss and Cashflow together to create a Balance Sheet. If the balance sheet from these two combined does not balance then one has unearthed the central lie, and so it was unreconciliable.

Further the officers might have distrusted LEC’s budgets and their competence by observing that even in small matters the budget submitted was wrong.. there is no VAT to be claimed on either bank charges and interest nor on Insurance, but LEC Lights calculate VAT on both. One would be on guard had the officer been awake at the time.

Can a balance sheet be prepared from the two documents, Cashflow and Profit and Loss? For year ending 30th March 2010….NO!! That is to say the fundamental underpin of all accounting numbers, that they should all add up to zero, to balance, is not satisfied. Thereby the plan is INVALID.

The reviewing financial officer, probably Bob Neeld, did point out on July 23 2009 that in October 2009 the cashflow predicted that the £15,000 overdraft facility would be exceeded by £20,000 even with the receipt of the grant… “predicting its own failure” was his expression. The cashflow sent to myself under FOI shows the re-arranged balances to answer this flaw, leading only to a £7,900 overdraft. A remarkable turnaround in the one month leading to the award in August 2009, partly explained by the introduction of supposed further Director’s loan repayments of £15,000. Indeed that became a condition of the BIG loan that at least the first of three deposits of £5,000 be shown to officers of Invest Wirral. Really it was a paltry condition indeed in face of the manifold objections to awarding the grant, not least that at 31st March 2009 the firm was insolvent to the tune of £115,000 .

The real question were the connexions between the patent holding company Luminanz . If £15,000 could be magicked out of somewhere within less than 3 months, perhaps in reality the claimant was Luminanz, based in Bolton. The reviewing account was alive to this in his July report

“I am therefore alerted to the possibility that the two companies are connected, and that the development project is being undertaken by Sign Lights ltd(lec lights) yet owned by a related company under licence”.

Indeed a former name of the company had been Luminanz Manufacturing Limited, one of its four incarnations. At inception Morton Graham was both a director and a fifty per cent shareholder in LEC lights whilst at the same time controlling Luminanz Ltd in Bolton.

Mr Neeld devotes two paragraphs to the notion that perhaps in reality LEC lights does not need the money, a vital criteria of BIG, it can get it from Luminanz, but is opportunistically grabbing at the ripe plum on the WBC tree, as did so many of those in my audit sample. It is transparent also that Mr Mathews is good for the money without recourse to WBC BIG fund. Later Mr Mathews turns £100,000 of his loan to LEC Lights Ltd to share capital, and, in 2016, is able to offer the Administrator of his company a straight £60,000 for its patents and equipment having dumped a quango creditor (NWF Energy and Environmental technologies LLP) for a cool  £750,000. I guess in one way or another that was our taxpayer money!

The magicking of £15,000 resonates with the curious absence of Director’s remuneration for the entire year projected to March 2010 and onwards through to August 2010, a fallow period of 17 months where the director would live off fresh air. A man of such resources!! He can repay the £15,000 he owes the company and still live off nothing for 17 months. Why ever does he NEED the BIG grant? The suspicion is that it is Luminarz of Bolton who are really behind this bid just as Bob Neeld, the WBC accountant, harboured suspicion. The second director of LEC lights, H Matthews, seems happy not to be repaid his £145,613 until April 2010, and then only in drip feed. The contingency that Mr Matthews will not take his money back early remains another problem for the advising WBC accountant.
The reader must therefore ask himself whether, as claimed by former CEO Mr Burgess, and by the Wirral Chamber of Commerce honcho, Mr Adderley, the BIG fund was largely a success? I will, reluctantly, write a round up of all my long protracted audit but for now I confidently can write…it was not!

It was a failure .When competent officers pointed out flaws their objections were got round by utterly facile means or they were simply ignored or outvoted in the Panel, a vote never recorded.(see Grant Thornton’s report). The independents on the Panel were never told the whole truth. The so called system was as porous as a Delhi slum sewage pipe. Perhaps the officers were incompetent, or just lazy and complacent, or perhaps a deliberate opening was made to facilitate favouritism or even bungs.

 

 

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Better to reign in Hell,than to serve in Heaven ……

better-to-reign-in-hell

We are proud to publish the latest instalment of the BIG/ISUS/Working Neighbourhoods saga written by Nigel ” Highbrow” Hobro  which may answer a few questions raised by our readers and explain why we continue to follow this story.

We follow it because it’s everything that’s wrong. The incompetence, the ineptitude, the total disregard of what’s right and wrong.

Better to reign in Hell, than serve in Heaven:

“So spake th’apostate Angel, vaunting aloud

But inward rack’d with pain”

Satan is the Father of Lies whose feeble imitation of God is Gehenna, or Hell. Rather than serve Truth he will concoct a monstrous imitation, rather like Macbeth who preferred to be a false King than a faithful Thane.

We read much vaunting from Councillor P Davies and from his faithless band, that Wirral Borough Council is ever “open and transparent”. We read glossy brochures from Merseyside Special Investment Fund about its manifold successes and yet all are silent on their failures?

My Lord Leaky in the preface to “The Big Lie” https://wirralleaks.wordpress.com/2016/09/16/the-big-lie/ worried about the muteness of regulatory authorities. He did not elaborate but they are worth reciting here. A forensic investigator given access to the Beverley Edwards report signally fails to report of the warnings from that lady about the phoenixing of Lockwood Engineering Ltd’s assets into Harbac UK ltd. Remarkable it is, considering the discussions held with Andrew Walker, the Government Internal Audit Agent, that Grant Thornton can report of no wrong-doing by Council officers. Long before I and James (Griffiths) made our complaints GIAA was investigating the perversion of the tender process for the £3m Business Start up 2 (ISUS) project, and the intimidation by council officers of the most qualified candidate to run it who had an assessment of 88% compared to wirralbiz’s 36%! Yet still the 88% candidate did not secure the contract. Turning to the liquidators of Lockwood Engineering Ltd they found nothing unusual in an engineering company stating on oath that the engineering firm had no machinery whatsoever. When confronted with this anomaly and the starkly clear evidence of the BIG file their response was the liquidation was over. The liquidators of Harbac UK Ltd when presented with same evidence by devilish equivocation asked by what right did I question them, was I a creditor of Harbac UK Ltd? Finally they finished with a “well we have lost a lot of money!” (some £10k on their £395 per hour fees). At this time after a prolonged liquidation, due to there being no accounting records given to them, they propose to close the company in January 2017,without reporting any need for detailed investigation despite having had copious correspondence between myself and themselves (https://beta.companieshouse.gov.uk/company/07396044).

I have only started emptying the bucket but the above should be enough to persuade the reader that we should all share Lord Leaky’s concerns.

The Devil rules the world and he does so with coin!

What of Merseyside Special Investment Fund (MSIF) and connexions with the Big Lie article?
I don’t intend to befuddle the Reader but these matters are not a clear as the springs in Paradise. Pandemonium is a phrase well coined.

Unlike Councillor Davies in the press release referred to in the Ministry of Truth article

https://wirralleaks.wordpress.com/2016/11/14/ministry-of-truth/

I will warn the Reader that there is some speculation in what I am going to write. I feel entitled to speculate when my adversaries plainly lie. Councillor P Davies undoubtedly is a clever man ( really? – Wirral Leaks) and with fingers in many pies as can be seen from his personal website :

I represent the Learning Partnership on the Wirral Local Strategic Partnership and the Wirral Waterfront Board. 
I am a non-executive director of the following organisations: The Mersey Partnership; Greater Merseyside Enterprise; the PSL Group (Pentra); The Lauries; Wirral Multi-cultural Organisation; and the Laird Foundation.
I also represent Wirral Borough Council on the Merseyside Objective 1 Programme Monitoring Committee and chair a post-2006 European funding lobbying group as well as the Wirral Pathways (Priority 4) Board .

The key words are THE Mersey Partnership, Wirral Waterfront Board and Merseyside Objective 1 Programme Monitoring Committee and chair a post-2006 European funding lobbying group. I believe these posts extend in substance back to the beginnings of wirralbiz and of the strange case of New Concept Gaming Limited. Speculation coming…Councillor Davies would associate closely with Mark Basnett, Director of the Liverpool Enterprise Partnership, for, after all he had also been a member of the LEP and has many photo opportunities with Mrs Paula Basnett, ex Head of Invest Wirral , and now Head of Wirral Chamber of Commerce. Invest Wirral was in charge of the BIG fund and Mrs Basnett was charged from early 2011 with supervision of the renegade Directors of wirralbiz. If myself, Lord Leaky or Paul Cardin were the three witches on the blasted heath cackling before Macbeth, a picture can be conjured up. These people were and are an elite, an Eurocracy, who run Roman triumphs through the media hailing their achievements with our money, European money, and who would recoil at having their failures equally trumpeted.

New Gaming Concept Ltd

The following is neither lie, nor speculation.

In October 2009 Councillor Jean Stapleton signed off a BIG grant to the company who had already received public funding of £845,000 via Subsidiaries of MSIF and via the NWDA.

In March 2010 the same company filed for Liquidation with an accumulated net loss of £905K. All the European, BIG money and NWDA money was declared lost at the final Liquidators report in (https://beta.companieshouse.gov.uk/company/05427776) except for £5,000!

No accounts submitted to Companies House in the lead up to the investment of £845,000 of public money on 30th January 2008 were endorsed by professional accountants. Indeed the 30th April 2008 accounts did not even allude to the floating charge nor the debenture created on 30th January 2008.

Speculation follows:

Shoddy indeed was this for a recipient of £845,000 of public money, even dishonest. I wonder whether the accounts filed for 30th April 2009 on 8th December 2009 were truthful in outlining £461,494 of debtors when three months later the Statement of Assets

At liquidation the Debtors are described as £90,000 of which the liquidator by June 2011 has collected just and precisely £NIL. With Invest Wirral running the show given the revelations in the Grant Thornton BIG investigation one can imagine the BIG panel being duped.

This case has not been followed by any detailed investigation for like wirralbiz it does not suit the Eurocracy, among whom I count Cllr P Davies, to rake over the ashes. Certainly I doubt if Joe Public would ever have heard of this monumental waste if it had not been for the determination of the whistle-blowers to nail the LIE.

I have asked MSIF under FOI for their file on New Concept Gaming Ltd and received the fastest ever response to any FOI, that they were not subject to FOI. I have asked NWDA and its successor, DCLG, and WBC, for their files who of course are subject to FOI.

I conclude that Readers should be aware of just how little protection we are afforded from deception by Councillors or downright robbery by some private companies, by any organ of the state or duly appointed agent of the same. CAVEAT EMPTOR and respect to WIRRAL IN IT TOGETHER and WIRRALLEAKS who do the next best thing which is to put travesties on RECORD.