phoenixism
28. The procurement of security services gives serious cause for concern. NE Security Ltd
replaced established security service providers after the TWL JV arrangement was
agreed. The company emerged from a “
phoenixism” of a business that went into
administration owing large amounts to HMRC’s anti-avoidance unit a few years ago.
Relatively straightforward examination of the group’s corporate filings would have
established this. Further checks on the company’s recruiting practices would have
suggested ongoing tax avoidance/evasion, by paying staff who will clearly be employees
as self-employed. They would also have revealed the longstanding association between
Chris Musgrave and the company’s owner David Garside Snr, as well as the serious
record of his son David Garside Jnr in criminal activity of the sort to which freeports are
particularly exposed. In 2015 he was given an 11-year prison sentence for a leading role
in organised drug crime and is now re-employed by NE Security. No competent
procurement and governance system could have awarded around £5m of security
contracts – covering for example the perimeter of the freeport customs zone and oversight
of highly valuable scrap - to this company.