Law firm set up by Tasmina folds ‘with high debt’
A LAW firm founded by a senior SNP candidate at the centre of an investigation over alleged financial impropriety has gone into administration – with ‘very high levels of historic debt’.
Hamilton Burns WS was set up by Tasmina Ahmed-Sheikh and her former partner Niall Mickel in 2001.
But yesterday administrators confirmed it had gone into administration with nine staff members made redundant.
Despite founding the law firm, Mrs Ahmed-Sheikh left in 2015 shortly after becoming an MP. In December last year it emerged she was facing court action from HMRC in a sequestration case related to Hamilton Burns WS, which became a limited firm in 2014.
Sequestration is the removing, separating or seizing of anything from the possession of its owner under process of law for the benefit of creditors or the state.
An action was launched by HMRC against the senior Nationalist as a former partner in the firm and as an individual, as well as against the company – but the case never came to court after being dismissed ‘in chambers’.
At the time Mrs Ahmed-Sheikh insisted that she had ‘no outstanding personal tax liability whatsoever’.
Now the Ochil and South Perthshire candidate is being investigated by the Law Society of Scotland over allegations of financial impropriety involving a trust fund set up to help a vulnerable person.
The probe has led to calls for Mrs Ahmed-Sheikh to be suspended from the SNP – but First Minister Nicola Sturgeon has insisted that she still has complete confidence in the senior candidate.
Yesterday Tom MacLennan and Iain Fraser, partners with FRP Advisory, were appointed joint administrators of Hamilton
‘No outstanding tax liability’
Burns WS Ltd, a Glasgow-based firm focusing on immigration, criminal, matrimonial and civil practice law.
The application for administration is understood to have been made following a request by the company’s directors. Deals have been made for seven members of staff which will see them move to other firms, but nine other members of staff including two lawyers and seven administrative staff have been made redundant with immediate effect.
Mr MacLennan said: ‘Hamilton Burns WS Ltd had been severely affected by a marked reduction in legal aid income and a significant decline in general practice fee income.
‘The firm also had very high levels of historic debt which, together with the fall in income, led to unsustainable pressures on cash flow. Every effort had been made to find a solution for the firm, however it became clear that administration was the only option.’
The Law Society probe into Mrs Ahmed-Sheikh’s conduct is still ongoing and relates to a fund for which she was a signatory. Her former colleague Mr Mickel is also being investigated over allegations of financial impropriety.
He has confirmed that there is an investigation into a trust fund which involves one of his family members, but strongly denied any wrongdoing and said the probe followed a ‘routine inspection’.
Last night an SNP spokesman said Mrs Ahmed-Sheikh did not wish to comment.