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In a letter from myself to Mr Brown-Constable dated 7 July 2016 (Item 13 of the Schedule) Mr Brown-Constable was asked (a) How much had been charged by him personally to MHML for the work he did on the refurbishment? (b) What profit did MHML make on the £31,765.21 it charged to the lessees for the refurbishment? In other words what was the difference between the £31,765.21 MHML charged to the lessees and the total amount paid by MHML to its sub- contractors? In his letter dated 7 July 2016, with comments superimposed on my letter of the same date (see Item 14 of the Schedule) Mr Brown-Constable simply responds to each question: “I don’t consider that a valid query”. It is believed that the reason for this evasive response is that these questions cannot be answered truthfully without admitting fraud.
To summarise the financial position, MHML appears to have paid itself, without informing the leaseholders or obtaining their consent, (at least) £31,765.21 out of monies which the leaseholders had intended and made available to pay AR Lawrence. Furthermore MHML has still failed to account for a further £25,121.54 which (according to the Service Charge accounts) has been paid away, but the leaseholders still do not know to whom. This is set out in tabular form below:
Money appropriated and/or collected by MHML
£
98,262.75 18,000.00
13,147.00 129,409.75
72,523.00
56,886.75*
Available reserves (per PB-C)
Additional contributions collected Additional “voluntary” contributions paid
Water Tank Communal TV
Total monies collected by MHML:
Less:
Money Accounted for by MHML
Actually paid to AR Lawrence
Actually paid to surveyor
Total monies accounted for by MHML:
Total monies still remaining unaccounted for:
7,810 5,337
62,010.00 10,513.00
* Of this total, Paul Brown-Constable now admits that £31,765.21 has been paid to “MHML and its sub-contractors”, but has failed to identify any work carried out by MHML or its sub- contractors that could possibly justify such a substantial payment. The remaining balance of £25,121.54 (£56,886.75 less £31,765.21) simply remains unexplained. Even if one assumes that £13,147 was properly spent on the new water tank and the communal TV aerial, that still leaves £11,974.54 (£25,121.54 less £13,147) which has simply “disappeared”.
Reply: As advised on multiple occasions in multiple correspondence, £16,201 was in Reserves at end 2014 as advised in a covering letter dated 8 June 2015 to all lessees with a copy of the 2014 Accounts Summary stating “Reserves NOT utilised for YE2014 amount to £16,201 carried forward for this 2015 year”