TAXPAYERS could lose out on £26,000 after the company previously running Basildon golf course went bust.
Basildon Golf Centre has gone into liquidation owing £185,000 – including £55,000 to the tax man.
This means it is now highly unlikely Basildon Council will succeed with its legal battle to recover £26,000 from the business in unpaid business rates.
The company was hired to run the course by the council in 2007, but controversially shut it in April this year, during a row with the council over costs.
The course is still open with current operator, Warehouse Sports UK, running the venue.
Mick Toomer is chairman of the Friends of Basildon Golf Course pressure group, which successfully campaigned against Basildon Golf Centre’s plans to redevelop the course with thousands of tonnes of building rubble.
He says the company’s demise raises fresh questions about its dealings with the council.
He said: “In August 2009, we supplied the council with the year end financial statements for Basildon Golf Centre and 12 other associated golf course companies.
“Between them, they showed huge losses, with overall debts of millions of pounds.
“Despite this incontrovertible evidence, the council continued to shower Basildon Golf Centre with financial gifts and favours, costing residents hundreds of thousands of pounds.
“The big question still to be answered is why?”
Liquidators will now investigate the company’s accounts for any assets which could be sold to repay creditors, including the council.
However, it is understood the company has no assets.
Basildon Golf Centre was one of 12 businesses in the Jack Barker group, run by Ron Mayden.
Between them they owe around £400,000 to the tax man.
Angela Smith, the town’s former MP and now the Baroness of Basildon, said: “The council must show it carried out the appropriate checks. We will need to be satisfied of this.”
Tory council leader Tony Ball accepted there was only a limited chance now of recovering the money.
He added: “Mr Toomer did provide me with information when I became leader, which I had checked with officers, but it was deemed to be irrelevant to the position we were in at the time.”
The company was unavailable for comment.
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