Harlow Council reject claims by Welfare Rights
Politics / Thu 26th Sep 2013 am30 09:21am
The HWRA has launched a bid to raise funds to fight a court action. They say they need just over £4,000 initially.
Lat year, the council terminated its contract over unpaid debts.
A spokesperson for Harlow Council said: “The claims made by the Friends of HWRA are worryingly inaccurate and are misleading.
“There is no campaign against HWRA and no application for HWRA’s “Insolvency” has been made.
On 5 September 2013, the Council and HWRA attended a Registrar of the Bankruptcy and Companies Court, for a short procedural hearing on the Council’s Petition to wind up HWRA.
“That is because HWRA is and has been for many months prior to that hearing, insolvent. HWRA owes the Council in excess of £125,000.
“At the hearing on 5 September, the Registrar accepted the Council’s application to wind up HWRA and set a date for a full hearing on 30 October 2013 at which the Court will decide whether HWRA should be wound up and put into liquidation.
“HWRA closed its doors to new business on 15 October last year before the contract was terminated and long before the Council sought formally to recover the debt from HWRA which it did first by Statutory Demand (with which HWRA did not comply) then, necessarily by Petition.
“It would not have had to have petitioned for HWRA’s winding up had HWRA appointed a liquidator which, twice in December last year and once in January this year, it served formal High Court notices on the Council of its intention to do so because it considered that it was then or was likely to become insolvent.
Councillor Mark Wilkinson, Leader of Harlow Council, said: “The fact remains that the organisation still owes Harlow Council £125,000 and the Council has no choice but to take this action to recover Council taxpayers’ money.
“The Council will continue to defend itself rigorously from any further legal action.”
back in 1978/82 I was the deputy PRO for Harlow Council and the Advice Centre and its Welfare Rights team took pride of place in an impressive commitment to addressing community needs... its so sad to see that this one time flagship of the Council and the tax payers investment in it has been so consigned and reduced to what seems to be a silly wrangle over how the community pays for it......