Licences revoked in ‘fronting’ case 30 August 2018

Classic Routemasters and Meritrule have had their operator licences revoked by Sarah Bell, traffic commissioner for London and the South East, after an inquiry heard a complex tale of inter-company transactions resulting in the regulator’s decision of “strong evidence” of potential ‘fronting’.

Classic Routemasters (CRM) initially had a six-vehicle licence approved in 2016, but failed to provide evidence of financial standing in the required period. When bank statements were provided, in February this year, the licensing caseworker noted that Mark Warren was transport manager, despite already being listed as transport manager for Meritrule – and both companies had the same operating address.

The case hinged on possible fronting for Paul Jones, whose mother Jane Jones was the major shareholder in CRM and sole director of Meritrule. Paul Jones had been “on the traffic commissioners’ radar” since 2015, noted Bell, and it had been cited in the 2015 decision that any licensing application in which he was involved had to be referred to a traffic commissioner or deputy.

Both CRM and Meritrule had been called to separate inquiries, but the commissioner held a joint inquiry in July 2018; Mark Warren was the only attendee.

In her decision, Bell said: “Those engaged in ‘fronting’ should expect their good repute to be found lost and the licence revoked. It is the ultimate breach of trust.

“Even if I am wrong on ‘fronting’, the good repute of both operators is still lost because of their lack of transparency and proper record-keeping. Any operator found to be ‘fronting’, particularly where that fronting is for an individual who may be in difficulties obtaining a licence, should not be surprised when robust action is taken.”

She added: “Mr Warren has allowed the use of his name to provide a legitimate front to these two operators... I have given Mr Warren credit for attending the July hearing when nobody else did and reduced his period of disqualification accordingly.

“However, a transport manager in name only – which this effectively was – is about as serious as it can be. It is entirely appropriate to remove Mr Warren for a period to protect the reputation of professional transport managers, who attend and conduct their business in a diligent manner.”

CRM’s licence was revoked for three years with immediate effect; Meritrule’s for ten years, also with immediate effect.

Jane Jones was disqualified from holding a licence for ten years; Mark Warren was disqualified from acting as transport manager for three years.

Author
Laura Cork

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