Page 500 - FINAL MASTER 616pp 20-6-19 SOUND

Transactions in 2014 (the year of the major refurbishment project at Mitre House) -16- SUPPLEMENTARY REPORT TO CITY OF LONDON POLICE and to THE INSOLVENCY SERVICE mitre house management limited (“mhml”) – company no: 07731341 mitre house, 124 King’s road, london sW3 4tP (“mitre house” or “the Property”) directors of mhml: Paul Brown-constable, dima international limited (Jamil raja) and segar Karupiah (resigned 29 september 2016) (together “the directors”). WADE’S QUOTINGS AND TIMINGS AND WHO ARRANGED/ORGANISED ETC 28. on 1 January 2014 the positive balance on mhml’s “leaseholders’ reserve account” with lloyds Bank no: 24411268 stood at £92,472.13. the leaseholders were therefore in a good position to finance most of the expected project cost of £105,019. A CONSIDERED RESPONSE: “MOST OF” IS NOT “ALL OF” AND LEAVES MINUS ZERO IN RESERVES SO THAT’S A TYPICAL HILLGARTHISM. AS WELL ADVISED TO ALL LESSEES IN VARIOUS EMAILS AND MOST NOTABLY ON THE FINAL S.20 NOTICES (MARCH 25 & 22 JUNE 2014) APPROX £98,262 WAS EXPECTED IN RESERVES TO FUND A £105,019 WORKS’PROGRAMMERESULTINGINASHORTFALLOFAPPROX£6756RESULTINGINA CALL FROM ALL LESSEES OF £2000 EACH (£18,000) WITH A PREDICTED APPROX £11,243REMAININGINRESERVESATENDOFWORKINGS. ACCOUNTS YE2014 SHOW £16,201 AT END OF WORKINGS, A REASONABLE INCREASE OVER THE ANYICIPATED £11,243 WITH ALL “UNAFFORDABLES” PROGRESSED... 29. By a series of transactions in the course of calendar year 2014 a total of £103,218 was paid out of this account to mhml. all except one of these transactions (a transfer of £1,000 paid to mhml’s mystery account no: 25809768) were paid to mhml’s Priceplan Xs account no: 23433668 in order to finance the project costs. A CONSIDERED RESPONSE: THIS (a transfer of £1,000 paid to mhml’s mystery account no: 25809768) WAS (SIMPLY AN EXACT CREDIT & DEBIT) 30. in fairness there were three transactions totalling £5,571 in the course of 2014 whereby money was transferred the other way – in other words from mhml’s Priceplan Xs account into the reserve account. however it is clear that in the course of 2014 a net sum of £96,647 was paid out of the reserve account into mhml’s Priceplan Xs account. A CONSIDERED RESPONSE: £5,571 WAS TRANSFERRED BACK TO THE RESERVE ACCOUNT FROM THE CURRENT ACCOUNT AS WERE ANY SPARE FUNDS FOUND ANYWHERE UNTIL THEY WERE REQUIRED AS THE RESERVES ACCOUNT PAID INTEREST IF YOU CAN CALL 0.25% INTEREST? 31. What we do not know is precisely what mhml did with this money in the course of 2014 after it had been transferred to that account. that is because we were never sent the state- ments for the Priceplan Xs account for calendar year 2014 (although as referred to above, we did receive the bank statements for mhml’s Priceplan Xs account for 2015 and 2016). A CONSIDERED RESPONSE: AN ORDER FOR DISCOVERY WAS MADE FOR THE SERVICE CHARGE ACCOUNTS 2014 TO DATE (JUNE 2017) AND WERE ALL SUPPLIED TO MAUNDER TAYLOR ON 23 JUNE 2017 AND INCLUDED MHML’S ACCOUNT NO: 23433668 (THE “PRICEPLAN XS ACCOUNT”) FOR 2014 32. What we know for certain is that £72,523 of “legitimate” payments were made by mhml in respect of the refurbishment project (as to 62,010 to ar lawrence and as to £10,513 to the Please refer to attached “ADDENDUM/FURTHER REFERENCES” in suPPort of argument