​Director Disqualified After Overstating Turnover to Secure £50,000 Loan

A West London bakery owner has been banned from acting as a company director for ten years after fraudulently overstating his business's turnover to secure the maximum Covid Bounce Back Loan.

Azizullrahman Akbari, the former director of Watan Bakery in Southall, claimed his business had a turnover exceeding £200,000 to access a £50,000 government-backed loan. However, an investigation by the Insolvency Service revealed that the bakery had never generated sales at that level.

Inflated Figures Exposed

The Bounce Back Loan Scheme, introduced to support small businesses during the pandemic, allowed companies established before January 2019 to apply for loans worth up to 25% of their annual turnover, with a cap of £50,000. However, an analysis of Watan Bakery's financial records showed that its turnover was significantly lower than claimed.

For the financial year ending June 2019, the bakery's turnover was £62,584. The following year, turnover declined further to £52,370—far below the £200,000 threshold Akbari had declared to secure the loan.

Elizabeth Pigney, chief investigator at the Insolvency Service, condemned the misconduct, stating:

"Azizullrahman Akbari exaggerated his company's turnover to secure a £50,000 Bounce Back Loan, which most businesses were entitled to under the scheme's rules. 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 who made false declarations when applying for financial support from the government."

Consequences of Financial Fraud

Watan Bakery has been trading since 2016 and entered liquidation in July 2023. As a result of his fraudulent loan application, Akbari has been disqualified from acting as a company director for a decade, effective 29 January. Under the terms of his ban, he is prohibited from being involved in any company's promotion, formation, or management without court permission.

A separate entity now operates New Watan Bakery, with no connection to Akbari, who is not listed as a director.

Cracking Down on Covid Loan Abuse

Akbari's case highlights the continued crackdown on financial misconduct related to the Bounce Back Loan Scheme. With billions of pounds distributed to struggling businesses during the pandemic, authorities remain vigilant in pursuing fraudulent claims and holding directors accountable for misusing public funds.