And ye shall know the truth, and the truth shall make you free

The Truth about Party Debt

Posted by admin, on 2 July, 2011, to Andrew Brons' BNP Ideas web site

The British National Party is in chronic debt to a figure well in excess of £390,000 and faces court proceedings within the next few months for at least £217,000.

The court cases — which the party is sure to lose — are already underway for £217,000, while other creditors are owed at least a further £56,000. The latter figure is owed to suppliers who have not been paid but who have, so far, not instituted court proceedings.

The amounts under dispute and currently the subject of legal proceedings include the following:

- Romac Press in Belfast: £41,000.

- Mark Collett’s action against Adam Walker: £15,000.

- Michaela Mackenzie’s action against Nick Griffin: £25,000.

- The “Decembrists” (Kenny Smith et al) action against Nick Griffin: £120,000.

- Newton Press in County Durham: £16,000.

It is highly unlikely that any of these court cases (which together entail a liability of £217,000) will end successfully for the party.

Members will therefore be called upon to help to pay these bills, which, as mentioned, will ultimately be even higher once final court costs are factored in.

There is also no guarantee that at least some of the other outstanding creditors might not still institute court actions as well.

The worst of it is that the majority of the already existing court cases were completely avoidable and unnecessary.

- The “Decembrist” case results from the completely procedurally incorrect expulsion of several officials in December 2007.

- The Michaela Mackenzie case was yet another completely procedurally incorrect dismissal which could not result in anything other than a successful court case against the party.

- The Mark Collett court case is another legal action which could have been avoided had the correct channels been followed.

- None of the printing bills would have ended up in court had the money later used with “new” printers been first used to pay off the old debts.

This practice might even have criminal implications and is known as “trading while insolvent.”

There are two tests for solvency defined in Section 123 of the Insolvency Act 1986. These are (1) if assets are exceeded by liabilities, and (2) if debts are failing to be discharged when they fall due. If a company, or in this case the party, satisfies either criteria, then it is technically insolvent in accordance with the definition of the legislation.

* Former party fundraiser Jim Dowson has claimed that the party still owes the Adlorries company a further £120,000, of which at least £70,000 is outstanding PAYE and tax. The party’s Financial Scrutiny Committee has been told that Adlorries has been closed down and the debt is no longer valid.

If Mr Dowson is correct, the total party debt rises to over £390,000.

* Further investigations by BNPIdeas with Companies House have revealed that Adlorries has indeed not been wound up. The debts which that company accrued, which include obligations to HMRC, are therefore still valid.

The party’s total liabilities are, therefore, well in excess of £390,000, and most likely even more.

* There are strong indications that the total debt is even higher. BNP Ideas has been informed that there was a court proceeding last month for a £57,000 Royal Mail bill which has also not been paid. This is apparently only one of a number of such actions under way, including one from HMRC for an amount of £25,600, which accrues interest on a daily basis.

3 Responses to " The Truth about Party Debt "

Richard says:

July 2, 2011 at 9:04 pm

[Comment removed to comply with election "rules" - Ed].

Reply

Mercia says:

July 2, 2011 at 9:24 pm

[Comment removed to comply with election "rules" - Ed].

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Steve Blake says:

July 4, 2011 at 9:15 am

Can I just clarify the amount Griffin and Darby owe to us (or rather our legal team) was defined at £90k in December. Because of non-payment, additional costs have been incurred and the final true cost is as yet unknown. £120k may be a bit on the conservative side.

[Comment edited in accordance with party election "rules"- Ed].