Budge denies DTI 'squander' charge

Tony Budge hit back strongly this week at allegations that he dishonestly squandered millions on high living and extravagant hobbies while the construction firm A F Budge headed for the spectacular crash which cost creditors œ96 million.

Budge told Contract Journal: 'It's all wrong. We'll vigorously defend the action. We are not prepared to be used as some form of scapegoat.'

Leeds County Court heard last week that Budge spent or loaned an estimated œ25 million on 'hobby companies'. Budge, his wife, Janet, and fellow director Michael Yates were accused of dishonesty and misappropriation of funds.

The Department of Trade and Industry alleges that:

n œ5.5 million was lost in loans to a Bermuda-based 'hobby' company for speculative hunts for sunken sea treasures;

n œ1.2 million was spent through the same company on running a yacht;

n œ8.3 million was lent to another 'hobby' company which held Budge's private military collection of tanks, guns and even a Scud missile;

n œ152,000 was used to improve Budge's home - work included a swimming pool for Budge's string of racehorses and a rifle range. The spending was allegedly concealed in A F Budge's accounts for the construction of Newark by-pass; and

n œ900,000 was diverted from the company pension scheme.

Judge Heath agreed to a request for a two-month adjournment to allow the three defendants to call witnesses from banks and fellow directors.

But Budge defended his position to CJ this week. 'We have no equine swimming pool at Osberton Hall,' he said. 'The only swimming pool was built in 1960. It was already there when we moved in.

'And the pension fund was non-contributory, ie, money going in was totally company money. Everyone is getting a full pension.

'There was no purpose in paying more into a fully-funded non-contributory scheme. They are making a silly statement,' he claimed. The DTI almost ran out of time before started its legal proceedings against Budge.

'It had two years to make a move, but I only heard seven hours from the deadline,' said Budge.

'Notification was delivered to my office at 4.30pm of the final day.'

That was just four and a half hours after Tony's brother Richard, a director of A F Budge until 10 months before its collapse, heard that the DTI had signed an œ894 million agreement with his company RJB Mining for the sale of the English coal industry. Richard had successfully raised œ1 billion in the City of London to finance the ambitious venture.