Millions owed to Brighton and Hove City Council unlikely to be repaid

The money is owed by a cash collection company called Coin Co International (CCI) which went bust owing the council more than £3.2 million.

Some of Coin Co’s assets may even be in places such as Tunisia, out of reach of the specialist accountants who are trying to settle the bankrupt firm’s affairs.

The administrators said they were still trying to pay Coin Co’s creditors after the company collapsed owing more than £10 million to councils, charities and bureaux de change.

A report updating councillors on the Coin Co situation is going before the council’s audit and standards committee today (July 24).

The report said that in its last audited accounts in December 2012 the company was shown as solvent with assets of more than £1 million.

However, a review of the accounts by the joint administrators showed that the company had debts of £2,182,973 and was insolvent at that date by more than £570,000.

No reference is made in the accounts at that time to how much Coin Co owed the council.

The report said that this information ‘provides the strongest evidence to date that the company was operating fraudulently, in breach of customer contracts, and was wrongfully trading while insolvent’.

In June, the four directors, former Metropolitan Police officer John Baker, 71, and his wife Doreen Baker, 72, of Hassocks, their son Sean Baker, 48, of Burgess Hill, and daughter Joanne Baker, 46, of Belton Road, Brighton, were banned from running any business for eight years each.

Coin Co was paid almost £300,000 a year to collect more than £11 million cash from council parking meters and £8 million cash from council offices and schools. The company also handled £21 million in cheques.