Decision

Decision for Mulholland International Limited

Published 17 June 2022

1. MULHOLLAND INTERNATIONAL LIMITED

1.1 OH2010362

2. TRANSPORT MANAGER WENDY MULHOLLAND

3. PUBLIC INQUIRY IN BRISTOL

3.1 15 FEBRUARY 2022

4. BACKGROUND

Mulholland International Limited is the holder of a Standard International goods vehicle operator licence authorising the use of three vehicles from an operating centre in Hallen, near Avonmouth. The sole director is Wendy Mulholland who is also transport manager.

It can be seen from the bundle that Wendy Mulholland and her husband Patrick have significant licencing history:

P & J Mulholland Ltd held standard international goods vehicle operator’s licences in the Western and West Midlands Traffic Areas between 2014 and 2018 authorising a peak of 14 vehicles. The licences were surrendered in February and October 2018 respectively. The company entered insolvent administration in March 2019. The sole director was Patrick Mulholland. At public inquiry in January 2021, I was told by both Mr and Mrs Mulholland that Mrs Mulholland had all dealings with the liquidators. Both had made a conscious decision to use money due to pay VAT to pay trade creditors such that they would provide services in the future.

East Coast (Mids) Ltd was granted a standard national licence in the West Midlands Traffic Area in August 2015. The sole director is Joseph Mulholland, Wendy and Patrick’s son. Wendy became transport manager in November 2015. That licence was surrendered in 2017 in favour of a six-vehicle licence in the Western Traffic Area. Wendy remains transport manager.

Mulholland International Limited (this licence) was granted a standard international goods vehicle operator’s licence in March 2018 authorising the use of six vehicles and two trailers. It was called to public inquiry in January 2021 where I curtailed it to 3 vehicles only having accepted an undertaking for a full systems compliance audit to be carried out by 31 May 2021.

Mulholland Tippers Ltd applied for a standard national licence in June 2020 to authorise four vehicles. The application was determined and refused at the same January 2021 public inquiry.

The compliance audit for this licence in May failed to materialise. I was subsequently made aware that the company entered creditors voluntary liquidation in October 2021. I was horrified to find from the Statement of Affairs that the company was estimated to owe £254,715 of which far and away the major part was owed to the Crown as follows:

HMRC VAT £80,346

HMRC PAYE £52,958

Bounce-back loan £37,077

I called the operator to public inquiry on the following grounds:

under Section 26(1)(f) of the Act, vehicles not kept fit and serviceable, driver defect reporting, that the drivers hours rules would be complied with;

under Section 26(1)(g) of the Act, that the company had entered liquidation;

under Section 27(1)(a) of the Act, that the operator was not of sufficient financial standing, good repute or professional competence, or that the transport manager is not exerting continuous and effective control

under Section 27(1)(b) of the Act, that the transport manager may not be of good repute.

Wendy Mulholland was called in her own right to consider her good repute as transport manager.

5. THE PUBLIC INQUIRY

The inquiry was listed for 10.30 on Tuesday 15 February 2022. Ms Mulholland responded to the call-in first to say that she didn’t understand why the case was being called and subsequently to say that she was not attending and had resigned her second transport manager role. Nothing has been heard from the liquidators. No-one has attended. Due to the seriousness of the matters, I decided to produce a written decision.

6. CONSIDERATION AND FINDINGS OF FACT

At public inquiry in January 2021, I found that Wendy Mulholland had been aware of, and party to, her husband’s company misusing £50,000 of VAT owed to the Crown to pay trade creditors when the company was insolvent in March 2019. I allowed the licence of Mulholland International Limited to continue by the finest of margins and based on a compliance audit to be provided within 4 months.

Nothing was heard from the operator. The undertaking relied upon to allow the licence to continue was not fulfilled. Section 26(1)(f) is made out and I attach significant weight.

It is a fact recorded at Companies House that the company is in liquidation. Section 26(1)(g) is made out. It follows that the operator fails to be of sufficient financial standing, Section 27(1)(a) is made out in that respect and revocation is mandatory.

I refer to paragraph 3 and the fact that the majority of the shortfall is owed to the Crown. There appears here to be a pattern to Wendy Mulholland’s behaviour and she treats the tax-paying British public with disdain. This is a three-vehicle operation. How it could possibly have generated a £170,000 deficit in such a short period of time is beyond me. It is for the liquidators to undertake their statutory duties in that regard. However, on the balance of probabilities and noting that the sole director and transport manager today failed to attend, I find that good repute is lost both as a director and transport manager as Wendy Mulholland is not to be trusted.

Disqualification in a revocation case is not automatic but neither does it need a further adverse finding. In this case, the scale of loss to the Crown, the inclusion within that of a bounce-back loan and the pattern of involvement with insolvencies which appear not to have been properly managed mean that Wendy Mulholland should not be allowed to continue within the haulage industry. Her having chosen not to attend means that I am unable to establish any period or feature that would re-establish her good repute. She is therefore disqualified from acting as a transport manager or from applying for or holding an operator’s licence within UK or the European Union for an indefinite period.

7. DECISION

Pursuant to adverse findings under Section 27(1), loss of good repute and financial standing, the licence is revoked. The licence is further revoked pursuant to my findings under Section 26(1)(f), and 26(1)(g), failure to comply with a licence undertaking and entry into liquidation. Revocation takes immediate effect.

Pursuant to Section 28(1), Wendy Mulholland is disqualified from holding or applying for an operator’s licence in any traffic area or Member State of the European Union with immediate effect and indefinitely.

Pursuant to Paragraph 16(2) of Schedule 3 to the Act, Wendy Mulholland is disqualified from acting as a transport manager in any traffic area or Member State of the European Union with immediate effect and indefinitely.

I propose to revoke licence OH2002359 pursuant to Section 27(1)(b), that the transport manager is no longer of good repute and Section 27(1)(a), that the operator is no longer professionally competent.

A copy of this decision goes to the liquidators along with a copy of Wendy Mulholland’s stated intention to leave the UK.

Kevin Rooney

Traffic Commissioner

15 February 2022