Novas Scarman Group has welcomed the Inquiry as a process to review key issues, and looks forward to the final Inquiry Findings. The Inquiry will conclude after the 14 July 2009 when the TSA meets after having heard and seen full evidence. In the meantime we feel an explanation is deserved.
The Inquiry has looked into three central allegations; the financial viability of Novas Scarman Group, misuse of public funds and financial mismanagement.
An extract of a confidential report written by BDO Stoy Hayward in relation to an inquiry by the Tenants Services Authority (TSA) was leaked to members of the press last week. This one-sided document contains a number of allegations that have been strenuously disputed by Novas Scarman Group.
There have been financial difficulties. Soon after completing the merger between Novas Group, Scarman Trust and PATH we were hit by the fall in property prices and limits to lending at the height of the banking crisis. We apologise unreservedly for failure to manage some elements of our finances and have since focused on and delivered significant improvements.
We have been working closely with the TSA for the past eight months to review key areas. We have now largely addressed our financial issues without any recourse to public funds. The Group now has sufficient working capital and our cash position is continuing to strengthen. The Group has a reasonable level of assets and no borrowing.
We have external validation by auditors Beevers and Struthers of our revised business plans and reassurance that Novas Scarman Group is viable going forward.
In the meantime we would like to thank our dedicated staff and partners for helping strengthen the Group’s viability, while protecting the interests of our customers and the services they rely on.
