Director who failed to explain ￡800,000 spend on company vehicles and keep proper accounts is sentenced

Eugenijus Nalivaika, director of a construction firm in Leeds, received a suspended prison sentence for not keeping proper accounting records and failing to justify spending over ￡800,000 on vehicles. He got 15 months suspended for 18 months, plus unpaid work and costs. Nalivaika, 46, admitted guilt in February for neglecting accounting duties at Niki Contractors Ltd. He was also banned from directorships for seven years due to separate civil proceedings.

Mark Stephens from the Insolvency Service emphasized that directors must maintain accurate records to protect stakeholders. Nalivaika's neglect sends a stern message that such negligence won't be tolerated.

Nalivaika became director of Niki Contractors in January 2020, which was already running since December 2016 under different leadership. The company folded in May 2021 due to debts. Investigations revealed numerous unexplained payments, including over ￡800,000 spent on vehicles and more than ￡3.7 million labeled as wages. Despite requests, Nalivaika failed to provide records, hindering investigations. Niki Contractors was liquidated with debts exceeding ￡2.5 million, and Nalivaika's actions obstructed proper scrutiny of its finances.

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