A COMPANY formerly based in Astley has been liquidated after its director "wrongfully" applied for a covid loan worth £50,000.

Information on the government's Companies House and Insolvency Service websites show that Zaw Htet applied for a Bounce Back Loan of £50,000 in May 2020, for his company Golden Rays Consultancy Ltd.

The Bounce Back Loan scheme was set up by the government to allowed small and medium-sized businesses to borrow between £2,000 and £50,000, on the condition that the loan is no more than 25% of a business' turnover.

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Information on the Insolvency Service website shows that Mr Htet asked for a £50,000 loan for the accounting and auditing firm in 2019, which changed its registered office address to Moorgate Drive, Astley, in September 2020.

Mr Htet self-certified and declared that the business' turnover for the calendar year 2019 was £200,000, although investigators later discovered that its record turnover for the year to March 2019 was £68,925 and its income for the calendar year in 2019 was £57,652.

This meant that although Golden Rays was entitled to apply for £14,413 from the government scheme, it borrowed £35,000 more than it was supposed to.

When the £50k transferred in May 2020, Golden Rays' account balance was just £46.64. 

The majority of the funds were also not used for the economic benefit of Golden Rays, the report states, with a total of £40,000 referenced as 'Transfer[s] to Zaw Htet'.

Following an investigation, Golden Rays ceased trading in April 2021, and entered into a creditors voluntary liquidation in May of the following year.

The total liabilities at liquidation amounted to £52,253, of which £50,003 related to the total amount owed in respect of the Bounce Back Loan, while no assets were seized during the company's liquidation.

Mr Htet has been disqualified for 11 years.