BAKERY BOSS BANNED FOR 10 YEARS

Southall Bakery Boss Banned for 10 Years After Fraudulent COVID Loan Scheme

In a recent enforcement action, the former director of New Watan Bakery Limited in Southall, West London, has been disqualified from serving as a company director for a decade due to fraudulent abuse of the government's COVID-19 financial support scheme. Azizullrahman Akbari, 60, was found to have significantly overstated his company's turnover to secure the maximum £50,000 Bounce Back Loan during the pandemic.

Established in June 2016, New Watan Bakery Limited operated the Watan Bakery on South Road in Southall, with Akbari as its sole director. In May 2020, Akbari applied for a Bounce Back Loan, declaring a turnover of £214,010 to qualify for the maximum loan amount. However, an investigation by the Insolvency Service revealed that the company's actual turnover was £62,584 for the period ending June 2019 and £52,370 for the period ending June 2020.

The Bounce Back Loan Scheme was designed to support small and medium-sized businesses affected by the COVID-19 pandemic, allowing them to borrow up to 25% of their annual turnover, with a cap of £50,000. By inflating his company's turnover, Akbari secured funds significantly beyond what the business was entitled to receive.

Following the misuse of the loan, New Watan Bakery Limited entered liquidation in July 2023, owing more than £53,000. A separate entity now operates the bakery, with Akbari no longer listed as a director.

Elizabeth Pigney, Chief Investigator at the Insolvency Service, stated, "Azizullrahman Akbari exaggerated his company’s turnover to secure a £50,000 Bounce Back Loan, the most businesses were entitled to under the rules of the scheme. From our analysis of the accounts, the company did not deserve anywhere near this amount." She emphasized that addressing Bounce Back Loan misconduct remains a priority, and the Insolvency Service will continue to take action against directors who made false declarations when applying for government financial support.

Akbari's disqualification commenced on 29 January 2025 and will remain in effect until January 2035, prohibiting him from being involved in the promotion, formation, or management of a company without court permission.

This case underscores the government's commitment to ensuring that financial support during the pandemic was accessed and utiliSed appropriately, and it serves as a warning to others who may have considered exploiting these support mechanisms.