A Hampshire drainage haulier has had its licence application refused after a traffic commissioner heard how its director illegally obtained bounce-back loans.
Director Jason Horn applied for a licence to run two lorries under a restricted licence for a company called Alton Facility Services, which was involved with drains and sewage.
Horn had been director of a firm called Southern Water Pumps which entered insolvency in March 2021.
At a Bristol public inquiry, traffic commissioner Kevin Rooney said there was still an outstanding overdrawn director’s account at £32,000 and he added: “The company had clearly benefited from two separate bounce-back loans from different banks amounting to a total of £86,000.
“The lawful maximum was 25% of turnover up to a maximum of £50,000.”
In his written decision, the TC said: “Mr Horn told me that he thought the statutory limit was per bank and that the company had held accounts with two banks.
“I dismiss that account as lacking credibility.”
Rooney said: “In any case, the amount in excess of £50,000 was clearly unlawfully obtained
“Whether it was fraud or a misunderstanding is really neither here nor there.
“In addition to the £86,000 of government-backed loans unpaid, there is a bill of £12,000 owing to HMRC leaving the tax payer £98,000 worse off.”
The PI also heard that Horn had been a director of a similarly named business called Alton Pump Services, which entered insolvency proceedings in February 2024.
Rooney said he had not considered in depth the reasons behind its failure, but he was troubled that evidence from bank statements showed that the Horn had continued to operate HGVs since that company failed:
“Mr Horn told me that he thought the company could operate once the licence application was made,” he said.
“I reject that explanation. Having previously held an operator’s licence, Mr Horn was aware of the need.
“If, which I doubt, he mistakenly thought that he could operate having submitted an application, it was his responsibility to seek proper advice before doing so.
“The combination of acquiring wrongly £86,000 of government-backed bounce-back loans and of illegal operation cause me to find that the applicant is unfit to be the holder of a restricted goods vehicle operator’s licence.”
The TC also noted that the removal of waste water to an unconnected recycling facility required a standard national licence, not a restricted one.
