ALDERNEY has left itself open to accusations of a whitewash over financial dealings at Alderney Electricity. As questions were asked over how former general manager John Buggy came to owe the company nearly £40,000 – outed in an audit of its affairs – some States members were quick to support the handling of the incident.

Richard Willmott, the States member on the company’s board, issued a personal statement yesterday after initially declining to comment.

He said that the accounts and chairman’s statement had given full details of the affair and why it negotiated a settlement with Mr Buggy – although most people’s readings of the accounts are far from clear.

‘Speaking as the States representative on the board, I know the matter was dealt with very promptly, thoroughly and professionally as soon as it came to light and I have fully supported the actions taken by the board,’ he said.

But an accountant yesterday told the Guernsey Press he would consider that the directors were failing in their duty not to have reported the incident to the police.

Guernsey Police confirmed that they had not been asked to investigate.

Mr Willmott continued: ‘The company has now recovered the sums due to it with interest and the matter is closed. It is, of course, a matter of great sadness to all those involved that such a breach of trust has occurred.

‘Mr Buggy very correctly resigned from his other positions as soon as the irregularities came to light, which will cause him some considerable financial loss. In every respect, he is the biggest loser from the affair. I hope we can now move on.’

In a report included in the accounts, company chairman Dick Haines wrote: ‘The board took advice on the optimum manner in which to effect closure of this matter, and chose to make a financial settlement. This avoided recourse to a more formal and expensive legal procedure, and achieved the company’s financial objectives.’

Fellow States members also supported the way the issue had been handled.

Barry Pengilley, one of many shareholders in the company, which is majority States-owned, said: ‘The States are satisfied with the way Alderney Electricity dealt with this problem.’

John Postlethwaite, a former States representative on the board, said: ‘It’s up to the police whether or not they investigate it.’

And Lin Maurice said that members knew about the irregularities weeks ago.

‘The whole thing has been kept in-house ‘at Alderney Electricity’ and it’s done and dusted now.

‘It’s the same as everything else – if you can pay back the money, then it’s sorted, isn’t it. It wasn’t the States – Alderney Electricity sorted it out.’