ENVIRONMENT has cancelled its contract with Delta Taxis to provide some school bus services after recent revelations about the firm.

‘The agreement with Delta Taxis (2004) Ltd to operate some limited school bus services has now been terminated after consultation with the liquidator of the company. Alternative arrangements have been put in place with other operators,’ a spokesman said.

Health and Social Services is reviewing the deal it has with the company, which collapsed this week owing thousands but which appears to be trading as normal.

After Delta was put into compulsory liquidation, former managing director Mike Newsom (pictured) claimed that he had sold its assets to Ashdon Lyme Ltd.

The validity of that move is still unclear, as is its impact on Delta’s £120,000-worth of debts, including £50,000 in unpaid tax and social security contributions.

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