Guido has been passed a confidential report usually only available to the clients of credit risk agency RiskDisk Limited. The report is about OQS Limited (formerly known as Labour Party Properties Limited) which was incorporated on 19 February 2002 and held the long leasehold interest in the Party’s head office at 16, Old Queen Street. The spin from Labour was that the Old Queen Street HQ was sold because it was not modern enough. The report tells a different story.
In a transaction off the balance sheet of the Labour party, the property company was used to roll up £1,171,000 in losses in three years. Despite charging the Labour party itself £315,000 in annual rent the company hid losses of £115,000 in 2003, £307,000 in 2004 and £550,000 in 2005.
The report concludes with a risk assessment suspending the credit rating and recommending that no credit be extended in any circumstances because “this company appears financially valueless.” Clients are warned “We strongly recommend you review this company’s parent or / holding company before making any credit decisions.” Tactful – legally the holding company is the Natiuonal Executive Committee of the Labour Party.