Business magnate barred from taking up executive roles due to alleged misuse of COVID-19 business loans
Anna Daroy, a former head of a leading British business group and an IBM veteran, has been banned from serving as a director for 11 years due to abuse of the COVID-19 business loan scheme.
The Insolvency Service announced its findings on Thursday, stating that Daroy, who served as the interim director general of the Institute of Directors (IoD) from October 2018 to November 2019, obtained two loans worth a total of £50,000 when businesses were only permitted one under the scheme.
The business loan scheme, designed to provide financial support to businesses during the pandemic, was allegedly exploited by Daroy. Both loans, each worth the maximum £50,000, were paid out by two different banks within five days of each other in May 2020. Upon realizing the error, Daroy did not repay one of the loans.
The Insolvency Service's chief investigator, Kevin Read, commented on the matter, stating that the loans were designed to support struggling businesses during the pandemic, not to be exploited. Read also mentioned that more than 2,400 directors have been banned for COVID-19 loan abuse since investigations began in 2021.
Daroy, who has 35 years of experience advising company boards in the public and private sector, has held leadership positions at The Chartered Institution of Water and Environmental Management and the British Association for Counselling and Psychotherapy since applying for the COVID-19 loans. She has also been nominated for the prestigious Women's Business Club businesswoman of the year award.
However, Daroy has not yet commented on the matter. It is worth noting that Globepoint Associates Ltd, the company to which the loans were issued, went into liquidation in March 2023, with both loans outstanding.
This ban prevents Daroy from being involved in the promotion, formation, or management of a company without court permission. The Insolvency Service has warned that it will continue to investigate and take action against those who abuse government-backed loan schemes.
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