CALLS for a public inquiry into questionable financial dealings at Alderney Electricity Ltd mounted yesterday. Islanders were outraged at a wall of secrecy surrounding claims in the company’s latest annual report.

These say that while the financial statements for 2005 were being prepared, it emerged that irregularities had arisen as a result of ‘unauthorised activities’ by former general manager John Buggy.

The company’s board commissioned an investigation which resulted in a settlement being agreed for the repayment of £38,343, including interest.

Mr Buggy said yesterday that he owed the company nothing.

‘Any money that was outstanding or allegedly owed by me has been settled.’

As far as he was aware the matter was now closed, he said, and he had no other comment to make.

States members met yesterday to discuss the matter.

The States of Alderney is understood to own 78% of Alderney Electricity.

‘Every States member was elected on the promise of open government and transparency and the first time there is a major issue they have closed ranks and erected a wall of silence,’ said one former member, who asked not to be named.

‘Some are in favour of keeping it quiet and some are enraged about the secrecy. Locals are saying, ”If it was one of us we would be prosecuted”.

‘The people of Alderney are entitled to a full and detailed account of what has taken place and there are calls from the public for a public inquiry,’ he said.

It is claimed that Alderney Electricity’s accountants have been dismissed.

As the amounts involved are not considered to be material in the overall context of the financial statements, no prior-year adjustments have been made, the report said.

However, the amounts have been included in the profit and loss account as an extraordinary item due to the high degree of abnormality arising from the events falling outside the ordinary activities of the company, which are not expected to recur, it said.

Alderney Electricity chairman Dick Haines yesterday indicated all that he had to say was contained in the report.

He did confirm that the report had gone to the shareholders but would not be drawn as to whether a criminal investigation was considered nor the nature of the activities.

Alderney Electricity issued a ‘no comment’ and States member and Alderney Electricity board member Richard Wilmott said: ‘The official line is that the board is not adding to the statement in the accounts.’

* Guernsey police are expected to make a comment later today.