Hussain - New Three-Year Five Star Contract Shocker!

Back in 2010 the loony Labour lefties tendered for the provision of taxi services in Sandwell to run to 31/08/13 (31st August may, perhaps, be a significant date). Incredibly they priced the tender in the official notice at £18 million but then they had been raking in lots of Government loot during the Blair/Brown years and were spending like drunken sailors (apologies to inebriated mariners).

Now Five Star Taxis (half owned by Councillor Hussain and family) either didn't tender for the work at this stage or tendered and were rejected (yes, ok, the latter scenario seems unlikely). But the fact of the matter is that the contract was recorded in the Official Journal of the European Union (OJEU) 11166-2011 OJEU s008, 13.01.11 and a number of local firms were awarded the work.

(Just as an aside, if you are wondering where you might have seen OJEU Notices before - this was the fiddle Sandwell Labour relied on to gift the multi-million pound Public conversion contract to Interserve without putting it out to tender).

Now Five Star were NOT named as a contracting party in the OJEU Notice and yet, somehow, they came to be allowed into the contract in 2012.  I have been searching for documentation regarding this to no avail. It could be that Five Star took over a firm that was already a named party but I just don't know at this stage. I am asking Sandwell Council (don't hold your breath). Of course, the clown Cooper was now "in charge" of the circus.

Clearly it would be a good thing to get in on the contract with a year to go and with the expectation of then being able to participate in the tendering for the next three year period. I speculated in my earlier blogs that the contract was from 1st September, 2012 since Deputy "Leader" Mahboob Hussain gave up the Company secretaryship on 31st August, 2012 and transferred his remaining shareholding on the same date.

Now there must have been some slight hiatus around 31st August, 2013 because the incompetent "socialists" did not grant the new contract until 30th January, 2014 to take effect from 24th February, 2014. I am assuming that the original firms just kept working as normal in the intervening period. Certainly Five star continued to rake in the cash. But Five Star went through some sort of "tendering process" (AGAIN) at SMBC but no-one apparently saw a conflict of interest - if the Hussain family shareholding was ever declared. And if it was not - well that is why the Police need to take a look at all this. Let's hope no SMBC employees are implicated in any way.

BUT WHAT JOY! NOW FIVE STAR WERE LEGIT AS THEY WERE A NAMED PARTY TO THE CONTRACT VIA OJEU AWARD 52293 - 2014! The contract runs until 23rd February, 2017 with the option to extend for a further year!

Sadly, the winds of change have been blowing financially and the value of the three year contract is down from £18m to, er £3.4m!!!! ADDENDUM 25/09/14 - CORRECTION - SMBC documents say this is actually £3.5m PER ANNUM ie £10.5m in all.

In the last financial year Five Star earned a minimum of £60,471.75p from Labour which would normally (being in excess of £60,001) trigger a referral to the Cabinet Member responsible (presumably Comrade Crompton) but I am sure they will say that rule doesn't apply as the tender was all done via OJEU Notice! Of course. they have had just short of £100 grand in all.

Now Hussain has not disclosed his or his family's interest in Five Star via the SMBC website nor via his Declaration in the Register of Members' Interests. I am sure he wouldn't use his influence (cough) to force SMBC to give Five Star extra work but they are in for a decent share of £3.4m (Correction as above 25/09/14 - now share of £10.5m) until February, 2017. Why the mainstream media are not picking up on this scandal is beyond me but the least I can do is put the facts before you.

Finally, there seems to be some incredulity regarding the Hussain family's shareholdings in Five Star and so here are the relevant edited details from the actual Companies House Records. Now you see it - now you don't - then you do again!

Save that Hussain's son, Adnan, makes a brief appearance it as as previously stated:

Company 06657553 - Five Star Taxis and Minibuses Limited

Councillor Mahboob Hussain starts with a 30% shareholding and his wife, Nasreen Begum 20%:

Annual Return 23/04/10 Mrs Hussain (Nasreen Begum) 20%; Councillor Mahboob Hussain 10%; Son - Adnan Hussain 20% (seemingly acquired from Daddy on 28th July, 2008).

Annual Return 23/04/2011 Mrs Hussain (Nasreen Begum) 20%; Councillor Mahboob Hussain 10%; Son - Adnan Hussain 20%;

Annual Return 09/10/12 (bit late this one......) Mrs Hussain (Nasreen Begum) 20%; Councillor Hussain 0% Having disposed of 10% shareholding to daughter 31/08/12; Son - Adnan Hussain 0% having disposed of 20% on 1st September, 2011 - presumably to his Sister (Councillor Hussain's daughter) Shasta Parveen who now holds Hussain's original 30%;

Annual return 09/10/13 Mrs Hussain 20%; Daughter - Shasta Parveen 30%;

Annual return 22/07/14 (after the award of the new contract via the OJEU Notice) Mrs Hussain 20%; Daughter Shasta Parveen 0% and dear old Councillor Mahboob Hussain 30% again!

Maybe he thought he was untouchable having bagged the new three/four year contract? Whatever. He certainly is one arrogant f**cking cock (pardon my French)!

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