BUST FIRMS TO DOUBLE.

Byline: SENAN HOGAN

HUNDREDS of firms, including scores of construction companies, will go bust this year, it was claimed yesterday.

Director of Corpo-ratEnforcement Paul Appleby forecast he will receive more than 800 insolvency reports from liquidators this year - double last year's total. He said the reces-sion is posing significant challenges for many firms, particularly those involved in construction.

Mr Appleby added: "We have seen last year more than a 40 per cent increase in first-time liquidator reports with respect to some 400 newly insolvent companies.

"We forecast that in 2009 we will receive more than 800 first-time liquidator reports."

Launching his 2008 annual report, the white-collar crime watchdog urged directors not to break company laws.

Mr Appleby warned there has been a 400 per cent rise in the reported amount of company funds being used by directors for personal purposes. He said: "At a time when some companies are failing to pay their creditors, it is difficult to conceive of any valid justification for decisions which result in the depletion of company assets, even on a short-term basis."

In a stern warning to rogue executives, he added: "We have no wish or desire to see directors sanctioned for ordinary business failure, but we will wish to see directors who act illegally or who do not act honestly or responsibly face the full rigour of the law." During 2008, the ODCE processed 32 convictions, 20 disqualifications and one restriction under company laws.

A record amount of EUR46,600 in fines was imposed and the first conviction of a company director for knowingly using company assets in breach of the legal restrictions on the giving of loans to directors was secured.