Director lied on three loan applications after already receiving funds

A PEMBROKESHIRE businessman who fraudulently claimed £150,000 in Bounce Back Loans during the Covid-19 pandemic has been handed a suspended prison sentence.

ZAHID AFZAL, aged 37, of Albert Street, Haverfordwest, was sentenced at Swansea Crown Court on Thursday (June 12) to two years in prison, suspended for two years. He was also ordered to carry out 300 hours of unpaid work.

Afzal, the director of mobile phone businesses Phone Bits Ltd and Phones Onn Ltd, had already received £52,500 in legitimate Covid loans when he applied for a further three loans—one for Phone Bits and two for Phones Onn—between May and November 2020.

The court heard that Afzal lied on each of the second-round applications, claiming they were the first he had made and exaggerating the turnover of the businesses. Each loan was for £50,000—the maximum permitted under the government-backed Bounce Back Loan Scheme.

The Insolvency Service, which investigated the case, found that the majority of the £150,000 Afzal fraudulently secured was transferred to his personal accounts, in breach of the loan scheme’s conditions.

David Snasdell, Chief Investigator at the Insolvency Service, said: “It is clear from our investigations that Zahid Afzal felt he could continue to apply time and time again for loans he was not entitled to. His sentencing should serve as a reminder to those contemplating fraudulently pocketing taxpayers’ money to think again.”

Afzal’s companies operated phone shops and kiosks in Carmarthen, Shropshire, Andover, and North Devon. The Insolvency Service confirmed that no wrongdoing was found in relation to the original £20,000 and £32,500 loans he obtained for Phones Onn Ltd and Phone Bits Ltd respectively.

The government’s Bounce Back Loan Scheme was introduced to support small and medium-sized businesses during the pandemic, offering loans of up to £50,000 at low interest, guaranteed by the Government. Loans were strictly intended for business use only.

The Insolvency Service has confirmed it is now seeking to recover the £150,000 under the Proceeds of Crime Act 2002.

Financial dispute believed to be behind incident on Marble Hall Road

POLICE were called to a property in Milford Haven this week after reports that persons were threatening to kill the occupant.

The incident, which took place on Wednesday (June 11), led to a visible police presence at an address on Marble Hall Road. Dyfed-Powys Police have confirmed that officers are investigating.

In a statement, a police spokesperson said: “Officers are investigating a report of threats to kill made at a property on Marble Hall Road, Milford Haven, on Wednesday 11 June. Enquiries are ongoing.”

The Herald understands the incident may be linked to a financial dispute over money owed, although this has not been officially confirmed by police.

No arrests have been announced at this stage.

Anyone with information is asked to contact Dyfed-Powys Police online or by calling 101.

TWO people were arrested on Friday evening (June 6) following a disturbance reported on Pill Road in Milford Haven.

Dyfed-Powys Police confirmed that officers responded to a report of an affray at around 7:45pm. A man aged 30 and a woman aged 28 were arrested near Milford Marina shortly afterwards. Both have since been released on police bail.

Police clarified that, contrary to some rumours circulating locally, no drugs raid took place in connection with the incident.

The Herald understands that the arrests followed a confrontation involving multiple individuals, but police have not released further details, including the identities of those arrested.

A spokesperson for Dyfed-Powys Police said: “Dyfed-Powys Police attended to a report of an affray on Pill Road, Milford Haven at around 7.45pm on Friday 6 June. One man, aged 30, and one woman, aged 28, were arrested on suspicion of affray and have been released on police bail.”

Enquiries into the incident are ongoing.