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Councillor Khan protected by limited liability

with 6 comments

simply workwear ccjsDoes Independent councillor have sufficient moral authority to look after YOUR money?

The revelation this week that the business operated by Cllr. Ahmed Khan, the South Tyneside Independent Alliance deputy leader, has suffered a crisis in debt management with numerous creditors chasing Simply Workwear through the County Courts, raises questions about his suitability as someone who we should entrust with the scrutiny and challenging of public expenditure by the Labour Party in South Tyneside, and his effectiveness as a guardian of council tax payers.

Surely there must be times when councillors question his judgement in committees or full council when it comes to opposing or even approving  public budgets or the questioning of further loans or debt repayments by South Tyneside MBC?  It also calls into question the judgement of his party leader and colleagues in entrusting him to take forward these challenges on their behalf. The Fat Councillor has further details on Cllr. Khan’s business problems here.

Of course being a director of a company whose liabilities are limited by articles of association may afford him some protection from Simply Workwear’s creditors, but he cannot be protected from the public scrutiny of his electors in the Beacon and Bents ward of South Shields. We are now witnessing the growing difficulties of a company director to manage the finances of a small shop in Westoe with any great success: if he cannot manage to look after the money of his own small business, then why should you trust him to look after YOUR money and the multi million pound budgets of the council?

Does Cllr. Khan carry the moral authority to truly represent his electors and effectively steward their council taxes?

Click the thumbnail to enlarge (and many thanks to The Skinny Cooncilla for anonymously providing the information).

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Written by curly

June 26, 2010 at 1:49 pm

6 Responses

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  1. Curly, the responsible thing for Khan to have done would have been to close the business earlier. Instead, we see that he continued to run his business at the expense of his suppliers, apparently in the hope that he could scrape through. But, I see no evidence that he remodelled his business away from the failed business model that caused his suppliers so lose £28,000+.

    And, before anyone jumps in to say that times are hard, we should remember that this is not the only business of his that has gone belly up in the recent past. He has airbrushed his failed clothes manufacturing business out of his political CV, but fail it did. The biggest (only) customer of that business was… that’s right. Simply Workwear.

    I would not be at all surprised to learn that SW owed money to his manufacturing operation. But of course, if you own two companies, it is very unlikely that one is going to sue the other…

    The Fat Councillor

    June 26, 2010 at 2:30 pm

    • The reasonable thing for him to do would be to announce his resignation or intention not to seek re-election, on the grounds that he is not qualified to scrutinise or challenge the spending of other people’s cash.

      curly

      June 28, 2010 at 8:06 pm

  2. […] have previously written that I do not believe that it is morally right or defensible for a person with such a poor track […]

  3. hi there just been reading this as i am owed money could you tell me the address of his MANUFACTURING COMPANY as we manufacture his uniforms etc and at the moment we are still trading no thanks to mr khan

    alan oliver

    July 11, 2011 at 2:17 pm

    • Be careful Curley, I’m sure Mr Oliver should know how to access this kind of information using legitimate means particularl;y if he is providing goods for Mr Khan I don’t see it being the onus of bloggers to become involved in such business issues!

      Kevin

      July 11, 2011 at 4:34 pm


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