Council's offshore "funders" have licence revoked

EXCLUSIVE by EWAN LAMB

Premier Group Isle of Man which ran the fund chosen to bankroll Scottish Borders Council's £23 million waste treatment facility has had their licence to practice revoked by Manx. financial regulators for breaching regulations.

Not Just Sheep & Rugby has already revealed how Premier Group collected tens of millions of pounds in fees for controlling and managing New Earth Recycling & Renewables [Infrastructure] Fund (NERR) while that fund was involved in the disastrous Borders project alongside contractors New Earth Solutions Group (NESG).

Research has shown that NERR was never in a position to put up the cash for the combined Mechanical Biological and Advanced Thermal Technology plant at Easter Langlee where a landfill site is due to be closed down next year.

The council scheme also collapsed because of technical issues...in other words the form of technology approved by elected members was unable to function. But the loss of £2.4 million of taxpayers' money on the failed venture was blithely written off with no public explanation.

Since then Premier Group has plunged into liquidation with a similar fate for NERR whose 3,250 investors are almost certain to get none of their money back. At the same time NESG is in administration following the revelation it had debts of more than £150 million.

Now the Isle of Man Financial Services Authority (IOMFSA) has confirmed that Premier Group (in liquidation) which was licensed under the island's financial regulations has had its licence revoked with effect from December 6.

Premier, whose managing shareholder is Premier Group Distribution Inc. (PGDI) registered in the British Virgin Islands, had already ceased trading, but IOMFSA was not able to accept the surrender of the licence, according to a statement issued by the regulator.

The statement, which sets out the reasons for revoking the licence, cites the following: "Audit requirements including the provision of audited financial statements for the year ended December 31 2016 of the Financial Services Rule Book have not been met.

"Premier Group has not discharged amounts it owes to the Authority in respect of the last annual licence fee and certain administrative civil penalties".

Yet Premier Group claimed when liquidators were called in that it would meet all of its financial obligations.

IOMSA's statement added: "Under Rule 8.57 (8) of the Financial Services Rule Book the Authority may require a licence holder to hold professional indemnity insurance (PII) cover in respect of claims arising from past acts or omissions.

"The Authority would expect a licence holder such as Premier Group to take steps to hold appropriate PII but Premier Group has not been able to achieve this".

Meanwhile NESG administrators Duff & Phelps have given notice to Companies House of their intention to move NESG from administration to dissolution. Details of the notice are expected to be made public during the next few days.

It seems that in the not too distant future all of the businesses and funds chosen by Borders councillors for their "cutting edge" waste treatment project will cease to exist. And yet none of this warrants an investigation by Scotland's spending watchdog Audit Scotland.