Flights director grounded over failure to account for £2m
The director of a company that offered cheap air fares has been disqualified for nine years after failing to ensure the company kept proper books and records to account for some £2m of flight bookings
24 Jul 2018
Jawwad Ansar, from Ilford, was the sole director of Cheap Flight House Ltd (CFH). The company was incorporated on in November 2010 before being purchased by Ansar on 15 February 2017, the same day he took over as sole director of the company.
However, the company went into liquidation on 10 March 2017, 23 days after Ansar took it over, having traded since 2010 with declared creditors of £5.5m and a declared book debt of £2m due from sub agents.
Ansar told investigators from the Insolvency Service, who were looking into the affairs of the company following liquidation, that outstanding funds were due as a result of flights booked by sub agents of the company.
But further enquiries found that he had no business records to show the full nature of the company’s trading activities during his appointment, and whether these were connected with bona fide trading purposes.
In addition he could not provide sales records to verify at least £2m of flight tickets between 15 February and 10 March 2017, nor was there information about who they were booked for or on behalf of and who benefitted from these tickets.
The Insolvency Service was unable to ascertain whether book debts for the sum of £2m declared by Ansar to be owed by him were legitimately owed and if so, whether these funds were recoverable.
Furthermore, Ansar was unable to supply a list of flights booked, a list of customers, and did not provide any breakdown of the sums owed to the company.
Martin Gitner of the Insolvency Service, said: ‘The company booked large numbers of flights, for which the company owes in excess of £2m, and has no evidence of these being purchased for bona fide business purposes.
‘This ban should serve as a warning to other directors tempted to take an established company, incur large liabilities for goods for which no payment is made and then fail to provide evidence of the legitimacy of the purchases.’
Report by Pat Sweet