A HAVERFORDWEST man who fraudulently secured £150,000 in Covid support for mobile phone businesses has been ordered to repay almost £200,000 — and faces prison if he fails to pay.

Zahid Afzal, 37, of Albert Street, appeared at Swansea Crown Court on Monday (Jan 19) for a confiscation hearing under the Proceeds of Crime Act. The court ordered him to pay £197,306 within three months.

Afzal was previously handed a two-year prison sentence suspended for two years in June 2025 after pleading guilty to fraud offences following an Insolvency Service investigation. He was also ordered to complete 300 hours of unpaid work.

The Insolvency Service said Afzal made two legitimate applications for Bounce Back Loans in 2020, totalling £52,500, for his companies Phone Bits Limited and Phones Onn Ltd. However, it said he then exploited the scheme by applying for three additional maximum-value loans of £50,000 each, despite companies only being entitled to one Bounce Back Loan.

The £150,000 was paid between May and November 2020 — one £50,000 loan for Phone Bits Limited and two £50,000 loans for Phones Onn Ltd.

Investigators said Afzal falsely declared that Phone Bits Limited had not already received a Bounce Back Loan when he made a further application in May 2020, despite £32,500 having been paid into the company’s account the day before.

They also said he inflated the turnover figure for Phones Onn Ltd on applications in July and November 2020, stating it was £200,000 — the minimum required to secure a £50,000 loan — after earlier declaring turnover of £80,000 when applying legitimately for a £20,000 loan.

The Insolvency Service said significant amounts of the money paid into the businesses were later transferred into Afzal’s personal accounts, contrary to scheme rules which required the loans to be used for the economic benefit of the business.

Afzal has repaid only £2,722 in the more than five years since the applications were made, the Insolvency Service said. If he fails to repay the £197,306 within the time allowed, he faces two years in prison — and will still be required to repay the money even if jailed.

The confiscation figure includes the three £50,000 loans and indexation to reflect changes in the value of money since 2020.

The Insolvency Service said it also secured a restraint order against Afzal’s accounts, preventing assets from being moved or spent while proceeds of crime action was pursued.

Afzal’s businesses operated mobile phone shops or kiosks in Carmarthen, Shropshire, Andover in Hampshire and North Devon.