Company director ban for bakery boss who overstated turnover to secure loan

A west London bakery boss who overstated the business’ turnover to secure a maximum-value Covid bounce back loan has been banned for acting as a company director for 10 years.  

Azizullrahman Akbari claimed a £50,000 loan for Watan Bakery on South Road in Southall.

To do so the 60-year-old claimed the business’ turnover was more than £200,000, but in reality it had never seen sales at that level.

Elizabeth Pigney, chief investigator at the Insolvency Service, said: “Azizullrahman Akbari exaggerated his company’s turnover to secure a £50,000 Bounce Back Loan, the most businesses were entitled to under the rules of the scheme. 

“From our analysis of the accounts, the company did not deserve anywhere near this amount. 

“Tackling Bounce Back Loan misconduct remains a key priority for the Insolvency Service and we will continue to take action against directors like Akbari who made false declarations when applying for financial support from the government.”

Businesses established before the start of January 2019 could apply for a bounce back loan of up to a quarter of their annual turnover, with a maximum amount of £50,000. 

Insolvency Service analysis of New Watan Bakery’s accounts revealed turnover of £62,584 for the period to the end of June 2019. 

For the period ending June 2020, the turnover was smaller at £52,370. 

The New Watan Bakery had begun trading in 2016 and entered liquidation in July 2023.

Akbari’s ban started on Wednesday 29 January and he cannot be involved in the promotion, formation or management of a company, without the permission of the court. 

A separate company now runs New Watan Bakery and Akbari is not listed as a director.