A new business has been refused a Gangmasters Licensing Authority (GLA) licence because of serious concerns of ‘phoenixing’, and the decision has been fully supported at appeal.

Primeval Limited of Sparkhill, Birmingham - principal authority Nazir Ahmed - was inspected by the GLA after it applied for a new licence.

However, at the start of the inspection, GLA inspectors had to ask Mazhar Iqbal, front man of banned A-Z Employment, to leave. A-Z Employment had been closed down by the GLA at the end of 2007 for a series of worker abuses and illegal practices at

Evesham vegetable packing firm Simms and Wood.

During the inspection of Primeval, the GLA found:

• certificates on display belonging to Mazhar Iqbal and another ex-employee of A-Z Employment

• all the paperwork presented was a duplication of the paperwork used by A-Z Employment.

Other similar pieces of evidence led the GLA to conclude that Primeval was not, in fact, run by Nazir Ahmed, but that it was a front for the previous business of A-Z

Employment, with those previously involved there being involved at Primeval Limited.

In refusing the licence of Primeval Limited, the GLA also found no trace in its system of Ahmed, an incorrect NI number, no company registration date or number for PAYE or VAT purposes, an incorrect Companies House number and failure to meet standards on payment of wages, tax, NI, VAT and allied matters.

Primeval Limited appealed against the decision to refuse the licence. In dismissing

the case, the appointed person, said: “I have grave concerns as to the ability of the Principal Authority to act as a fit and proper person in regard to his duties in particular because his English is so poor, he lacks business acumen and he was manifestly ignorant in relation to key aspects of knowledge which are required to have been regarded as a fit and proper person to hold a gangmasters’ licence.

“I am also troubled by the clear links between the appellant and A-Z Employment.”

Separately, a gangmaster whose Birmingham business was shut down by the GLA has also had his new business refused a licence amid ‘phoenixing fears’.

Harnek Tung applied to the GLA for a licence for new business PTE UK Limited, after the authority revoked the licence of his former business, EMP Solutions, following a raid which uncovered worker exploitation at Simms and Wood in December 2007.

The GLA refused to give the new business a licence because Tung was not considered to be ‘fit and proper’ to hold a GLA licence due to his systematic failure to address the non-compliances in his former business.

GLA chairman Paul Whitehouse said: “If the GLA closes down a business because of its failure to meet GLA standards, it does not mean the gangmaster can set up another, under another name, with no questions asked. It makes a mockery of the system.

“He cannot simply set up shop under a different name. A crude ruse like this will not work. There is no easy way back for these kind of people.”