17th October 2018
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Judane latest

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The council is trying to justify the writing off of more than £400,000 of money owed by former knitwear firm Judane by saying that a “significant proportion” was compound penalty interest built up in the last six years, according to a leaked document.

In a circular to councillors from head of economic development Neil Grant, he failed to say exactly how much of the total figure of £411,000 was interest but advised that the council’s lawyers believed it might be difficult to enforce the payment of such sums against the company. They had accrued since 2004, he said.

According to Mr Grant’s report Judane borrowed two sums from Shetland Development Trust (SDT), now the economic development unit, one in 1993, the other 10 years later, worth £860,000. So far, £761,000 has been paid back, with a further £190,000 to come. Councillors decided at a secret meeting last month to waive the remaining £411,000.

“The compromise agreement agreed at the council meeting on 9th December represents the best financial return to the Shetland Development Trust of the options available,” Mr Grant’s report contends.

More than a month on, there has been no public comment from the council on that decision. Officials say that a legal agreement is being worked out between the council and Judane.

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One comment

  1. Kathy Greaves

    Councillors decided at a secret meeting last month to waive the remaining £411,000.

    At the time of the local elections this council, collectively and individually, promised to the open and accountable – and yet they ‘give away’ over £400k of our money, in secret. So whose idea was it to write off the money owed, who and how many voted?

    Are we, the community, going to be offered the Judane knitwear building as recompense? This would make sense as the Millers could be seen to be both paying off their debts and redeeming their good name at the same time.

    What price your good name?

    Reply

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