More than 16,000 businesses which took out a type of government-backed Covid loan have gone bust without paying the money back, the BBC has found.The cost to the taxpayer of these insolvencies could be as much as £500m, and is likely to grow as more companies go under.The figures, obtained by the BBC under a Freedom of Information request, have been described as "shocking" by a former head of the Serious Fraud Office.
"You wouldn't send an army into battle without assessing the risks. And just the same in this situation, the risks, which were obvious, should have been assessed and addressed," said Sir David, who is now chairman of the Fraud Advisory Panel.The government has said it will "not tolerate" people defrauding taxpayers.
Mr Ferguson has since been censured by the Insolvency Service and banned from being a company director for six years. "Despite our best efforts and much to my deep sorrow, this service failed. I was advised to liquidate the company, having been willing to repay the loan up to that point." The loans were spent on everything from gambling debts and cryptocurrency schemes - to cars, house renovations, even flying lessons.So it's not clear how much the government will eventually be able to recover.Several agencies have been tasked by the government with investigating Covid loans and getting back the money.
Source: Loan News Today (loannewstoday.net)
rishisunak this one was yours. Care to explain it?