Construction company fails to pay recruitment agencies

A construction company, Pazhar Zvezdy Ltd, was wound-up in the public interest in the High Court earlier this year. The company traded as a residential and commercial construction company, but,  following complaints, was the subject of confidential investigations by the Insolvency Service.

Enquiries by the Insolvency Service uncovered that Pazhar Zvezdy Ltd would submit duplicate timesheets on behalf of their workers to multiple construction recruitment agencies contracted for their payroll services. But once the workers received payments, however, Pazhar Zvezdy Ltd failed to pay the recruitment agencies for their payroll services.

The Official Receiver is aware of multiple creditors who may be owed money in the liquidation and may not know about the company’s insolvency as Pazhar Zvezdy Ltd changed its name from ASA UK Development Limited earlier in the same year.

The case continues – to read the full report, see: Construction company fails to pay recruitment agencies – GOV.UK (www.gov.uk)