Page 13 - 74_PBC to Begg_13-12-16 (22pp)

charges were properly payable by Mrs Hillgarth (notwithstanding that you had initially invoiced them to the RTM company) and that the offset was therefore lawful. You made use of her money that was sitting in the company's account in order to pay yourself, just as if she had given you a blank cheque. That is theft — plain and simple.
(reply) It’s actually called a bad debt - I hesitate to think what Mrs Hillgarth’s credit rating is? MHML consider her thoroughly untrustworthy as she had previously withheld amounts due.
'4. The only other outstanding question now is exactly how much of the lessees’ money you have taken. You have refused to disclose how much was paid to you personally, this being ”impertinent" and/or a ”peripheral/ detail" and/or ”not a relevant query" and/or ”asked out of time". But this is information to which the leaseholders are entitled and which will become available to us on disclosure. As soon as litigation has started we will seek an order for specific disclosure of all relevant invoices and MHML bank
statements so that we can see exactly what has been paid and when and to whom.
(reply) Just how much more information do you need before comprehending replies to date?
‘The specification was agreed with the surveyor in February 2014 and AR Lawrence were appointed as the contractor in March 2014. In July 2014 you told Tony Smith that you were short of money and that was why you needed to reduce the specification/scope of AR Lawrence's work. Work started on 1 September 2014. Subsequently you wrote to the lessees on 23 September 2014 to ask for funding for the water storage tank (costing £7810 inclusive of VAT), stating at para 5 that you had no available Reserves to cover this cost. Not withstanding that you had (without their knowledge or consent) reduced the scope of the work, you told the lessees: ”...in the absence of available Reserves for these particular emergency works all lessees are required to pay .... .."
(reply) Just how much more information do you need before comprehending replies to date?
But now it is clear— and you admit — that you had plenty of money. Now you say: ”we had £98,262 in reserves to fund the 2014 works budget of £105,019. Consequently we were short by £6,757 and hence the required £2,000 contribution from all 9 lessees which would then allow £11,243 to remain safely in Reserves for any unforeseen eventuality”.... If this last statement is true, it is clear that you misled both Tony Smith in July and the lessees in September 2014 as to the funds available to you in Reserves.
(reply) Just how much more information do you need before comprehending replies to date?
You continue: ”.......Somewhat regrettably a small £85 [£858] overspend on the £105,019 budget was in evidence at the end of the Works which was the only item requiring a dip into the Reserves of £11,243". From this 1 take it that Reserves following the project stood at, or should have stood at £10,385 (ie £11,243 less the £858 overspend).
(reply) Just how much more information do you need before comprehending replies to date?
Looking at the 2014 service charge accounts, and again at the comparative figures in the 2015 service charge accounts, it appears that money actually spent on the refurbishment (that is the meaning of ”reserves utilised") {yes indeed, that’s why Notes are also attached] totalled £136,735 (ie £105,877 +£18,000 + £12,858). That is not only my interpretation but that of a qualified chartered accountant. But now you are saying that these figures should not be aggregated. And that £10,385 has not in fact been spent but remains in reserves. This does not show anywhere in your accounts. If you think it does, please point me in the right direction. [this is simply too pathetic to even re-comment on]
Nor can I reconcile your figure of £10,385 with the figures you have previously given me, which have been as follows:
Leaseholders funds
Starting Reserves before the Project
Additional contributions
Voluntary Contributions for Water Tank + T\//Sky Leaseholders Funds made available to MHML
£98,262.00 £18,000.00 £12,858.00 £129,120.00