Councillor employed three illegal workers

BANNED: Councillor Montaz Ali Azad's firm employed illegal workers, a probe has found

AN OLDHAM councillor has been disqualified as a director after an investigation found he had allowed his company to employ three illegal workers.

Councillor Montaz Ali Azad (53), who ran Eurolinen UK Ltd, an industrial laundry at Plantation Industrial Estate, Whitelands Road, Ashton, was banned from acting as a director or being involved in the management of a limited company for six years.

It followed an investigation by the Insolvency Service, working with the Home Office.

Failed

Eurolinen UK Ltd went into liquidation on September 18, 2014, owing £105,367 to creditors.

Councillor Azad was found to have failed to ensure that the firm complied with immigration laws. The breach was discovered following a visit from Home Office Immigration Officers on September 27, 2013, and resulted in a civil penalty of £15,000 being issued by the Home Office which remained unpaid at the date of liquidation.

The Labour councillor for the Coldhurst ward also failed to ensure that the company correctly operated a Pay as you Earn Scheme, by failing to declare these employees to HMRC and accounting to HMRC for any deductions made from their wages.

Councillor Azad, of Burnley Lane, Chadderton, was the company's sole director from March, 2005, until the business went into liquidation.

Robert Clarke, group leader, Insolvent Investigations North, said: "The Insolvency Service rigorously pursues directors who break employment and immigration laws.

"Taking on staff illegally means those staff do not enjoy basic employment rights and is a breach of a director's duties.

"The public has a right to expect that those who break the law will face the consequences"

Mr Clarke added: "Running a limited company means you have statutory obligations as well as protections, and this should serve as a warning to other directors tempted to take on illegal staff."