Cattles scandal deepens as divisional FD suspended

Cattles, the sub-prime lender, has suspended three of its directors including the FD of the division which is currently the subject of a review by Deloitte.

Finance director Peter Miller; John Blake, managing director; and Mick Belcher, operations director of Welcome Financial Services, are now under the spotlight of a separate Deloitte inquiry.

Cattles annual report, due for release last week, has now been delayed until the review is finished.

The company, which operates as Welcome Finance, said a 'breakdown in internal controls' led to its impairment policies being applied incorrectly.

Cattles is now holding talks with its lenders about the renewal of the group's bank facilities. The company is due to provide a progress report by the end of the first quarter of this year.

On 23 February 2009, Cattles said its group FD James Corr, who was due to have retired at the end of February, would remain in his role until the impairment provisions review was completed. Incoming FD Robert East's appointment to the board would be deferred, the company said.

However due to ill health, Corr is unable to fulfil his duties, so East has agreed to take on the FD role, but his appointment to the board has been shelved until further notice.