Rangers administration: Police now investigating amid £24m paperchase
Alistair Johnson: Called for criminal investigation. Picture: SNS
STRATHCLYDE Police has confirmed it is investigating the “ongoing situation” at Rangers Football Club – as former chairman Alastair Johnston demanded a Crown Office probe into Craig Whyte’s takeover last year.
As administrators running the Ibrox institution admitted they did not know there whereabouts of millions of pounds borrowed against predicted season ticket sales, it emerged the force had been passed a secret dossier.
A statement posted on Strathclyde Police’s Facebook page stated: “We can confirm that we have been passed information regarding the ongoing situation at Rangers Football Club. This is currently being examined and it would be inappropriate to comment further.”
Mr Johnston said: “I have today written to the Crown Office asking for an investigation into the background surrounding the acquisition of Rangers Football Club by Craig Whyte, and in particular whether there is evidence of fraud.
“I’m not making allegations against anyone, but I think it would serve the public interest that certain issues should be investigated into the takeover and ongoing situation at Rangers.”
Meanwhile, insolvency firm Duff and Phelps, the administrators appointed on Tuesday, confirmed yesterday that Mr Whyte had received £24.4m from Ticketus, a London-based company, by mortgaging off tranches of future season tickets.
However, instead of the funds going directly into the bank account of Rangers, the money was paid into a company account controlled by Mr Whyte.
David Whitehouse, one of two administrators, told an Ibrox press conference they were working to find the “visibility” of the money deposited by Ticketus.
He said: “We are looking into that [the deal with Ticketus] and trying to understand. The funds from Ticketus didn’t come through the club’s accounts. They went through those of a parent company.”
Mr Whitehouse said he was seeking the relevant documents connected to the loan from the club’s former lawyers.
Mr Whyte has always maintained that the Ticketus money was paid to Rangers and was used as working capital. In an interview with The Scotsman a fortnight ago, he said: “Believe me, every single penny of the Ticketus money has stayed in the club.”
Last night, a spokesman said Mr Whyte could not be reached for further comment.
The administrators, from the New York-based firm Duff & Phelps, also explained that Rangers FC as a business was “loss-making” and that the £9m withheld from the Her Majesty’s Revenue and Customs in VAT and PAYE payments since May last year, when Mr Whyte took over, had been used as a “funding tool”.
Mr Whitehouse said: “The reason it hasn’t been paid is that it wasn’t sent. It wasn’t kept in a separate pot, but as to why and whose decision it was, this is not something we are yet able to confirm.”
According to the administrators, Rangers FC is likely to escape liquidation, but faces a round of job cuts and could be sold to new owners. There have been “several expressions of interest from parties not connected to the club” since they took over the running of the Scottish league champions.
Paul Clark, the other administrator, said that interest in the club will be given due consideration. He said: “As administrators we have to look at all other expressions of interest in the club and to date, we have received several expressions of interest from parties not connected to the club.” Mr Clark said he had spoken with Rangers manager Ally McCoist and the players but was unable to confirm if any club staff, including the players, would be made redundant.
He said: “I told them a review of staffing, including playing staff, would be necessary as part of the process and that it would be next week at least prior to any decisions being taken in this area.”
However, according to sources, redundancies are expected to be issued to both staff and players next week.
The club is awaiting the verdict of a tax tribunal which could cost up to £75m, but Mr Clark said that he does not believe there is any danger of liquidation.
He said: “There has been widespread comment and speculation about the finances of Rangers. At this moment, it is not possible to give a detailed financial report but we can assure everyone that as part of the process there will be a full account of the club’s financial affairs and this will be published in due course.
“Looking to the future, we are hopeful that a company voluntary arrangement can be achieved and these are measures that are put in place and deal with all of the club’s liabilities.
“As a result of our preliminary assessment, we are wholly confident that Rangers will continue as a football club. We do not think that liquidation and the closure of the club is a likely outcome at all.”
When asked who has security on the club’s assets, which include Ibrox stadium, the training ground at Murray Park, the Albion Road car park and the current squad of players, the administrators said that it was a company controlled by Mr Whyte.
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Comments
There are 19 comments to this article
Page 1 of 2
bieldmaster
Saturday, February 18, 2012 at 05:54 AMGamekeepers are known from time to time to resort to poaching;when confronted by the long term ongoing illegality of their errant ways; said Gamekeepers will dive to cover their historical wrong doing. That much maligned "Scots" expression ;"It wissnae me jimmy"can be allocated to a whole gaggle of parties. H.R.M.C.-Auditors-Legal Eagles,Varied "boards of directors" bankers,et-al .do not seem to have been on target ; #3-Radar's Comment is a bulls-eye ;right on the money.
Dave scotland
Friday, February 17, 2012 at 11:02 PMWhat a damn cheek Rangers have asking the tax man to accept less than is due. There are small business,s that have to close due to tax debts. They dont get off with asking the tax man to take less. Have Rangers been caught cheating. We will have to wait and see. I surely hope not. I am not a football fan but it would be a sad day if we lost an institution such as Rangers.The whole of Scottish football will suffer if Rangers is lost. All the smaller teams look to have a big crowd when the likes of Rangers, Celtic visit so this must effect their cash flow. We should not be surprised when a football business get into trouble. The wages for the players are ridiculous and the transfer market is out of control. There seems to be this attitude within some football clubs that the money tree will never run out. Well the tax man should not accept a penny less than it is due .Why is it the company,s that are due millions get off with paying the full amount when they get caught but the poor wee business or the working person gets no such help and must pay in full. Tax is needed to run the country so any tax not paid by Rangers is money lost to you and me.
jerrymanders
Friday, February 17, 2012 at 08:06 PMPhoto Caption: "Not on my watch", well actually.......
Tartancult
Friday, February 17, 2012 at 07:09 PM#7... #3 What are you on about? -------------- just 'Stuff' by the look of things.
Highland Hibby
Friday, February 17, 2012 at 05:26 PMMinerva, no doubt Rangers prepare their own and auditors are asked for an opinion on whether they are right or not. If the auditors have failed in their duties they will be dragged in to this. Having said that, I think they are currently not signing off the accounts.
Charles P
Friday, February 17, 2012 at 03:45 PMForget Rangers is a Football Club and let's say it makes things for Motors. They 'borrow' £24Mill against money coming in, but Administrators have trouble with 'visibility' of said funds? PAYE and VAT used as a 'funding tool!, that's your money and mine! The feet of the company making 'things for Motors' wouldn't touch, they'd be huchled to the nearest Cop Shop and shot every morning at dawn for a Fortnight!
Tintock Pete
Friday, February 17, 2012 at 02:36 PMYes the groundstaff etc. will lose benefits due to unpaid NI. and possibly tax rebates due to unpaid PAYE and the taxpayer will probably pick up the tab for redundancy pay and pay in lieu of notice and I think Mr. Whyte is out of the country, possibly in England.
JaimeDLG
Friday, February 17, 2012 at 02:29 PMAll of this reminds me of time when Hibs fans put money into their club but then had not a clue as to what happened except that they ended up owning a loss making hotel group in the South of England sold to them by a high flying financier.. After that all went down hill until Mercer tried his infamous takeover under the name of a united Edinburgh team. Rangers fans should try and read the whole background to what happened at Easter Road because it shows how impotent supporters can be when big business get involved................. The best of luck to the Gers supporters and I know you will show it with a huge crowd at Ibrox tomorrow. ................... It will be like " Hands OFF Hibs" all over again
Mario Antoinette
Friday, February 17, 2012 at 02:21 PMSlow Down everyone. Rangers financial irregularities are obviously the hot news at the moment and any rumours or heresay will be published. I'm not saying it hasnt been "apportioned" by Mr Whyte, but give it time. Quite possible that the money did go to the club and has simply been spent on expenses. Who knows at this point, all is clear is that they havent finalised the accounts. As funny as it would be to see rangers go bust, it wouldnt do any scottish clubs any favours due to the debt owed to them.
Rabigyin
Friday, February 17, 2012 at 01:58 PMWhat has Mr. Johnson done? Sold Rangers FC to a conman, perchance? I had doubts about this company of administrators at the start, they seemed too cosy, but give the guys a chance, you might just find all the missing millions are abroad, where they cannot be touched by anyone. Who loses? You, me the Great "British Taxpayer", Ticketus, the rangers Fans, Players, Groundstaff etc., etc.. Where is Mr. Whyte? Still in this country? Enjoying the fruits of his labours elsewhere? Methinks he should be languishing in a Maryhill police cell being interrogated by.........Oh pick anyone from Govan!
Minerva
Friday, February 17, 2012 at 01:45 PMWhich firm of accountants prepare their annual accounts? How could they allow such an apparent balls - up?
Tintock Pete
Friday, February 17, 2012 at 01:36 PMalso Willie Boy, the other £8m missing is the employees tax and national insurance payments. This is theft.
Account deleted
Friday, February 17, 2012 at 01:28 PM#3 What are you on about?
BH1963
Friday, February 17, 2012 at 01:27 PMI've not read anything written by a Scottish newspaper which explains why Rangers cannot go into liquidation.There has been, and still is, complicity amongst the press to play down the reality of the situation.I hope HMRC refuse to sign a CVA and insist on the full amount.I think they will win the tax case which will then lead to criminal prosecutions of members of the previous board. Rangers fans would be best advised to have nothing more to do with RFC as it is and set up a separate club and start from scratch, or better still go and support someone else.
Buford Van Stomm
Friday, February 17, 2012 at 01:26 PMha ha ha beeling they never thought of it first.
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