CALLS have been made for an audit of the troubled Sark Viking project. The cargo ship build is reportedly over budget and recently moved from the ship yard it was at, the owner of which it emerged had been found guilty of running four boatmaking firms fraudulently and of stealing a European Union grant of £1.4m.
Chief Pleas has advanced a £500,000 interest-free loan for the Isle of Sark Shipping project that has yet to hit to water because of problems with its welds.
Sark’s government also provides the company, which it owns, with a £65,000-a-year subsidy, principally to enable the building of the Sark Viking until it makes money.
‘I was authorised by Chief Pleas to have a report done on the Sark Viking and on a recommendation I appointed the very firm which Isle of Sark Shipping has now taken on to rescue the vessel from the yard in north Wales where it could have become involved in the various problems,’ said former Sark Shipping committee president John Donnelly.
‘Steel Kit was quoted as being very reliable by William Raymond, on whose recommendation Chief Pleas made a guarantee commitment for a loan required to build the vessel. At present, the project is far over budget and there are more costs to come from the remedial work. I also believe there are other matters perhaps related to Mr Raymond’s handling of the management contract which are yet to be revealed. In short, I think there are matters of public concern which remain hidden and some sort of competent audit of the whole issue is required.’
Mr Donnelly was forced out of the Shipping Committee by a vote of no confidence that he supported, saying the committee had no real purpose.
During that same meeting of Chief Pleas, he raised the fraud case. The Sark Viking is now at a yard in Appledore, under the supervision of Mecal.
A statement from the Isle of Sark Shipping directors said the firm had reported that difficulties experienced by the builder of Sark Viking meant it was unable to complete the vessel as planned.
‘Because of these difficulties, the company has moved Sark Viking from the builders in north Wales to a shipyard in Devon where the work of finishing her is now well in hand,’ it said.
‘Work on rewelding a number of joints is advanced, electrical work is progressing and it is hoped to be conducting sea trials in about a month’s time.’
Even when Sark Viking was being moved, it ran into problems as a tug could not do the job because of sandbanks - the ship ended up resting on the sand, waiting for the tide to go back up again and a fishing boat to begin the tow.
Isle of Sark Shipping has had a difficult season, forecasting a £135,000 loss before tax for this year.
In April, a jury at Swansea Crown Court found Donald Fuller-Love, 56, guilty of four counts of fraudulently trading after he had left behind debts of £1.4m.
He had denied the charges.
Fuller-Love, from Llangwyryfon, near Aberystwyth, was sentenced to a total of three years and nine months in prison.
His wife, Nerys, was cleared of one charge against her of aiding and abetting him to run one company fraudulently.
The court was told that he run four companies into the ground and had continued trading when it was ‘blindingly obvious’ he would not be able to pay his debts.
All four firms, starting with Steel Kits Ltd, manufactured boats in kit form. As soon as one firm closed down, Fuller-Love opened another but left the debts behind.
Article posted on 27th October, 2007 - 12.00am
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