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Mr Shakar Habib, director at Vista Training Solutions Limited, has been given a six-year ban following the discovery of significant financial irregularities.
The company, in collaboration with other partner organisations, worked to help students find apprenticeships across London and received most of its funding from the Education and Skills Funding Agency (ESFA). Mr Habib served as sole director of the company from November 2015 through to the company’s abrupt liquidation in February 2020.
The company liquidated with a debt due to ESFA of more than £2.5 million. A subsequent investigation, jointly conducted by the Insolvency Service and ESFA, found that Mr Habib was unable to account for a staggering £3.5 million from the company’s accounts.
Investigators found that Mr Habib had not kept adequate company accounts, and records from April 2019 onwards were missing altogether. This meant that it was impossible to verify whether or not the £3.5 million were legitimate expenses of the company.
In addition, because there were no financial records, the investigators could not account for £525,000 in assets. Work is continuing to see whether it is possible to recover any of the money.
Mr Habib’s ban prevents him from promoting, forming, or managing a company without the court’s permission.
Of course, it is difficult to imagine that these financial irregularities were just the result of poor record keeping. However, it is a good reminder that directors have a legal obligation to keep proper accounting records. If you are finding it a challenge to keep your accounts up to date, why not give us a call and see how we can help?
