The Blind Leading The Blindfolded

blind_followers

We are grateful, once again , for the following submission from another of our regular followers and contributors , Mr Nigel ‘Highbrow’ Hobro.

Hobro brings his forensic eye to Wirral Council’s  failings in relation to funding which they were responsible for administering. What Hobro dissects may be esoteric to some but the failings he identifies will be familiar to Wirral Leaks readers – a failure of due diligence , a failure of openness and transparency , a failure of accountability and , damn it, a failure to do things ‘properly’ – and all in the name of reputation management (and no doubt other base motives) . We invite you to open your eyes before they take us all over the precipice:

The public are blinded as to the workings within Wirral Borough Council as the corporation seeks to keep its failings from open view. The issue regarding ISUS and BIG seems hackneyed except if one considers that the revelations have deliberately been kept in deep-freeze by the Council Leader and by top officers. They are as new as the date of release of data, usually forced by the Information Commissioner’s Office (ICO) under threat of contempt of court. Certainly I asked for the names of companies in receipt of BIG funding that were liquidated as early as 2013, to be refused, even though liquidated companies have no protection under the Data Protection Act. The latter was conclusively attested to in summer last year with a ruling from the ICO, and most surely had been known all along by the Council’s monitoring Officer, Mr Surjit Tour.

Those who have been blind seem reluctant to accept criticism from the illuminati despite thin vows of transparency and of accountability. When Grant Thornton reported on the multi-fold failings in the BIG process vis -a -vis 6 files nevertheless despite a disclaimer from Grant Thornton of the Councils italicized statement, the Council claimed no wrong-doing and pointed out that only Lockwood Engineering had gone bust. On forced release of the Executive Summary re BIG in July 2013 the Leader of the Council issued a press release stating the success of the program and that of all Big fund recipients (sic) only one had gone bust. Yet time and erosion of the whitewash reveal that in fact two companies further had entered into liquidation with connexions to the Leader even at that early date. The council chief executive blatantly lied on 8th October 2014 saying only three were bust whereas the true total was eleven by then. I am not sure that Braille can distinguish between entering liquidation and finally being liquidated though these blinders did insist on a difference that to all intents and purposes is valueless. When the sexton prepares the grave there are very few lazarus’ indeed.

I do claim that the BIG process was so flawed in its arrangements that it opened a clear vista for fraud. Due diligence would not involve a coach and blinkered horses being driven through the benevolent intentions of the grants.

Last week I received data re Corrin Kenny Limited a company that received £13,250 of BIG money sometime soon after 4th May 2011 when Councillor Andrew Hodgson approved the award. The file given me contained no accounts later than 31st March 2010 which represents a poor basis indeed for processing future projections.

The friar Pacioli who invented double entry intended that all debits and credits equate to zero otherwise his system collapses applying to historic and equally to projected accounts. Due diligence compelled me to reconstruct from the entries in the projections an opening Balance Sheet. It proved impossible to do leaving a creditor of £7,000 which clearly had not been run through the projected cash flow. Surely any business applying for £20,000 of free money should at the very least offer up a clear set of projections, and any civil servant intending to give out public money should expect a clear Business Plan budget. Without the budget being sound the reins of the coach are fraying.
BLIND, Wilfully blind or just complaisant officers?

The officer who produced a short page of recommendations for the “Independent Panel” to consider was a Mr Stone of the Regeneration Department. He did not look for a balanced model ( in Cashflows that do not balance as to Cash flow, Profit and Loss and Balance Sheet one can always find errors that invalidate the proposal) and did not remark on the £26,600 cost that was not included in the Total for Cost of Sales. This was plain as a pikestaff for any but the purblind. I imagine therefore that Mr Stone did not attempt to analyse the formulae within the Excel model-I did, unpaid!, and with my having to reconstitute the Excel from a Adobe Acrobat file. I observed with my clear vision that, to check the validity of the assumptions, I would need to recreate the file. If I had been paid it would have been 2 hours of WBC time . Mr Stone may have had the benefit of the original Excel file in which case half an hours work would have sufficed. They have eyes to see but do not wish to see!

Mr Stone or Gemma Henry had access to a reporting suite from Companies House. They might have discovered that the Company Secretary whose name headed the application was involved already with seven companies of which three at that contemporaneous time were entered into the London Gazette to be dissolved. This was not a chequered flag to go ahead with the grant but a chequered past to prompt more questions.

I checked the full accounts for March 2010 and noted from a minds eye memory going back 6 years that the requirement to produce accounts not less than 6 months old had not been enforced, or perhaps in April 2011 the officers did not see that accounts to 31st March 2010 were more than a year old. I noted as a kestrel hovering at several hundred feet the balance of Other Debtors at £52,989 and wondered if Ms Gemma Henry quartered in Invest Wirral’s offices in Egerton House asked of Mr Kenny, giving his address as Egerton House, of what that was composed. Could it be an illegal Directors Current account because it most definitely was not a Trade Debtor, and if it were that, then what business has WBC advancing money to a company that was already sitting on an unrecognised liability of up to £30,000 of PAYE/NI? I began to see into the future (see below.)

COACH AND HORSES

Then to the Minutes of the Meeting at 9:30am of 21st April 2011 (with next meeting at foot of page for 27th May 2010(sic)) attended by the blind Invest Wirral who blind-folded the independents from Business Link and from the Federation of Small Business by, per Grant Thornton, giving them no accounts, and just the précis by Mr Stone, Finance Manager. The précis ran to just 320 words which recommended that only £20,000 would do the job. After a discussion “in great detail” all voted save one independent to award the grant. Dissension was met by the compromise of awarding just £13,250 even though Mr Stone had written only £20,000 would do. Blind, blind, blind or perhaps the diligence drivers ( an 18th century coach) whipping through what they could for an individual close indeed to the Regeneration Manager, Mr Kevin Adderley.

All seemed unconcerned that the award would be the same contravention of rules as was the award – that never should have been given per Grant Thornton-to The Edge magazine of Lets Go Publishing ltd. Both sought to advertise in the Wirral just as had Thinklocal and indeed Wirral View in direct competition with non-funded newspapers. The blindfolded independents would not know only the wilfully blind officers knew.

THAT WHICH WAS VISIBLE TO THE DISCERNING EYE THEN AND CAME TO PASS

Hindsight reveals that far from Corrin Kenny having £93,266 reserves in March 2012, by July 2013 the Liquidator reported a deficiency of (£75,000 ) which for four years he has been trying to recoup from the director who had had an overdrawn current account (see above and £52,000).

HM Tax Inspectorate began calling in its debt in March 2012 .The officers did not see at March 2010 that the debt to Taxes had been £40,481. The did nt see the warnings from the filings at Companies House where the figures quoted as prior year balance sheet in the 31st March 2010 accounts were different from the 2009 Balance sheet as filed. It is the business of Local Authorities to ensure before parting with our taxes that the grantees have paid their dues and observe laws and regulations and not to encourage tax defaulters! The debt to the Revenue finally was recognised as being £70,646 and the Liquidator (see above) noted the debt owed by the director to the company. To this date the Liquidation is open five years later as the Revenue seek to enforce the debt. So the ‘diligence’ reached the river and unloaded £13,250 of tax-payers money to sail down the Swanee to the accompaniment of the blind harmonica players from the Council.

OBFUSCATION AFTER THE EVENT

What we can see is that Mr P Davies Councillor was not anxious that these details be released on Corrin Kenny Ltd since he did accompany Mr B Kenny on trade missions to the Isle of Man and, though I have not seen the photograph, allegedly to Reno. I guess the sad story of New Concept Gaming Ltd, some £845,000 of public money including some BIG, going down the same river was another musical score that the blind players did not want you to read. Of “all BIG recipients” these two were certainly in liquidation when Mr P Davies issued his press release in July 2013.

SOURCES
The sources for my article are Companies House, data which is now free and at the time would only have cost Invest Wirral a maximum of £5 to see; and What do they know.com at https://www.whatdotheyknow.com/request/corrin_kenny_ltd_big_fund_award?nocache=incoming-948560#incoming-948560

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.

Words of the Week #3

wotw2

This is the place where words collide.

The first word being ‘Gaming’ :

Manipulating a set of rules, a system, an infrastructure in a manner not intended by its creators to derive (or contrive) a tangible benefit, i.e. “using an exploit” or “hacking” a system.

http://www.urbandictionary.com/define.php?term=Gaming&defid=5116053

Apply this definition to New Concept Gaming Ltd and Wirral Council and all bets are off.

Or are they ? What exactly is “The Reno Connection”  in this sordid scenario?.

Only time will tell – but rest assured Wirral Leaks will be the first to report it.

The second word is ‘Chutzpah’

1. unmitigated effrontery or impudence; gall.
2. audacity; nerve.

http://www.urbandictionary.com/define.php?term=chutzpah

Apply this definition (and indeed ‘Gaming’) to Birkenhead MP Frank Field who gets a letter published in this weeks Wirral Globe under the title ‘Taxpayers’ money wasted’ :

Frank field taxpayer.jpg

Seriously? – this ultimate game player talks about wasting tax payers money whilst supporting paying a group of unworthy arseholes after a fat pay cheque who just happened to flick the record button when his political agent Cllr George Davies used racial slurs and offered a ‘smear deal’ to them if they badmouthed Tory Councillor Jeff Green.

Which brings us finally to our third definition :  Bunging public money to protect your ‘dunderhead’ political agent is surely the definition of ‘Taxpayers money wasted’

http://www.urbandictionary.com/define.php?term=Dunderhead