UK visa services firm sues ex-boss for £6m over alleged improper use of profits | Department for Education
The company, which carries out visa services for the UK government, sues its former general manager for £ 6 million for allegedly used the profit earned during a record immigration.
According to the court files, Cloud Bai-yun, who once represented the UK with an international ethics and fraud advisory body, is accused by ECCTIS for a confidence-based violation of tasks.
The company claims that it has made a profit in a non -profit government agreement and that this money was used to pay $ 17,587 million for the shares of ECCTIS in 2021.
ECCTIS’s claim to Bai-yun is £ 4,63 million, as well as more than 2 million pounds.
Bai-yun said: “I completely deny the claims made by Ecctıs against me by the new administration and I will defend myself in court.”
ECCTIS conducts official language tests and competence recognition services for applicants for certain UK visas or permits.
Within the scope of a non -profit contract with the Ministry of Education (DFE), it is claimed that ECCTIS is obliged to re -invest the earned profit or to keep the maximum half of the net earnings in the backup.
Bai-yun, who has been the general manager since 2014 and the director since 2006, is claimed to have approved large dividend payments in accordance with a holding company in 2016 and 2017.
Bai-yun was the only shareholder of the holding company and claims that the money in 2021 was used to buy the stock for £ 17,587 million. The stocks were later transferred to a trust of the employee.
He claimed that Bai-yun had no restrictions on the association articles upon the payment of ECCTIS and that he had made decisions about payments as a shareholder.
ECCTIS’s legal process follows a DFE audit that the company cannot re -invest the profit again in the company’s services. Bai-yun, who was moved to the chief advisor for the sale of stocks, was asked to resign from the second role after the 2022 audit.
In January this year, Guardian announced the details of the scandal and pioneered DFE’s highest -level officer Common’s Public Accounts Committee to say that the authorities had made a “very difficult review ında about“ serious failures ”.
The new legal order will be a shame for DFE, which has been renewed with changes that allow ECCTIS’s contract to the government directly to the government.
The internalists in the company expressed their concerns that ECCTIS continued to keep a monopoly on the services they said would be managed directly by the state.
ECCTIS has seen a huge increase in income in recent years due to historically high migration levels in the post -Brexit period.
According to ECCTIS’s request details, the Holdings Company was questioned by Robert Wall, the finance director in the company at the time.
Wall wrote that their understanding should operate as a “non -profit -free job”.
However, with the participation of Bai-yun, the Board of Directors continued to approve more than £ 2.5 million in 2017.
ECCTIS violates the agreement with DFE, claiming that the dividends are almost completely clear profit ”from the government agreements. The company also claims: “In February 2021, the funds, including 2017 dividends, passed to the defendant as part of the sales price of 17,587 million pounds.”
ECCTIS’s interest allegation of 4.6 million pounds plus “solution” includes only 2016 and 2017 dividend payments. There is a limitation of time on claims.
However, the request states that the DFE was paid to the audit of DFE until a total of 2021 in the dividend of £ 16.63 million, and the ultimately 17,587 million pounds paid to Bai-yun was given to the “purchasing price ..
ECCTIS claimed that Bai-yun’s ECCTIS Director has avoided the company’s success and avoiding conflicts of interest.
In his defense, Bai-yun claims that the price he received for his shares is £ 17,587, not £ 17.5 million.
The minister claims that there is no restriction on the use of net profit after investments in accordance with the services.
He rejected the conflict of interest because he approved the dividends as the shareholder of the Holding company, not as ECCTIS Director.
He claims that Wall is wrong in understanding the contract with DFE.
“Our new, strengthened contract means that in addition to a new leadership team in ECCTIS, as well as a new leadership team, the department can continue to work with ECCTIS to provide a good service to the public to provide a good service within the scope of international law.”
