Director disqualified for Bounce Back Loan abuse
The former boss of a west London bakery who overstated his company’s turnover to secure a maximum-value Covid loan has been banned from acting as a director for 10 years.
Azizullrahman Akbari, 60, obtained a £50,000 Bounce Back Loan just weeks into the pandemic, claiming the turnover for his New Watan Bakery Limited company was more than £200,000.
In reality, the company, which ran the Watan Bakery on South Road in Southall, never had such a high turnover.
Elizabeth Pigney, Chief Investigator at the Insolvency Service, said:
New Watan Bakery began trading in June 2016, with Akbari as its sole director.
Akbari, of The Broadway, Southall, applied for a Bounce Back Loan in May 2020, declaring his company had a turnover of £214,010.
Businesses established before the start of January 2019 could apply for a Bounce Back Loan of up to a quarter of their annual turnover, with a maximum amount of £50,000.
Insolvency Service analysis of the company’s accounts revealed a turnover of £62,584 for the period up until the end of June 2019.
For the period ending June 2020, the turnover was smaller at £52,370.
New Watan Bakery entered liquidation in July 2023 owing more than £53,000.
The Secretary of State for Business and Trade accepted a disqualification undertaking from Akbari, and his ban started on Wednesday 29 January.
The undertaking prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.
A separate company now runs the bakery. Akbari is not listed as a director of this company.
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