GHA Coaches directors' ban could last up to five years

A public inquiry held at Welshpool Town Hall heard that the brothers behind GHA Coaches, Gareth and Arwyn Lloyd-Davies, were found to have had a "catalogue of management failures" before the company collapsed in July.

The inquiry heard the state of the fleet was so bad that a wheel fell off a bus carrying schoolchildren that hadn't been serviced or maintained for 14 weeks.

The firm went bust owing more than £5 million.

Nick Jones, traffic commissioner for Wales and the West Midlands, said he was "appalled" by the wheel incident and called the fleet's maintenance "shambolic".

He said the directors should be disqualified for putting the finances of the failed Ruabon-based firm, which ran services across Shropshire and Mid Wales, ahead of road safety.

Mr Jones is now in the process of putting together a written determination with regards to how long to revoke the firm's operators licence for.

The brothers are also directors of RJ's of Wem and RML 2148 Ltd bus companies, which were bidding to run some of the Wrexham routes lost following the demise of GHA.

RJ's of Wem recently got approval to run some of those routes.

Following the inquiry, a Traffic Commission spokesman said: "Regarding the two other companies in Shropshire, nothing happens until the traffic commissioner's written determination.

"Both companies will be called in for a public inquiry, probably on the same day.

"They will have the option of replacing the two directors; the traffic commissioner will need to be satisfied that the other people will have no connection with the previous directors.

"Regarding the GHA Coaches disqualification, on past experience, a ban is usually put in place for between one and five years but the length will be determined by the traffic commissioner."

The Traffic Commissioner has 28 days in which to consider his written determination.

GHA Coaches, which had routes across Shropshire and in Mid and North Wales, went into administration with the loss of 320 jobs. A total of 11 routes were left without service.

The Lloyd-Davies brothers told the inquiry, at Welshpool Town Hall on Monday, that they were in no position to challenge allegations because company paperwork had been handed over to the administrators.

Vehicle examiner Mark Williams for the Driver and Vehicle Standards Agency said two separate wheel loss incidents were not been reported to the DVSA.

"I feel that passenger safety is not of paramount importance to the company and they have been found wanting in many areas," he concluded.

"It is clear from the prohibition notices issued that there are shortcomings in the maintenance system leading to concern over the ability of the operator to maintain their vehicles in a fit and roadworthy condition.

"As a consequence, it is considered that the operator is not complying with the statement of intent with regard to maintenance undertakings submitted at the time of the application for the operator's licence."

Mr Jones will look at the running of the company, and decide whether any further action needs to be taken following its collapse which left passengers and school children without transport when it stopped trading on July 13.

A service was also run to the Stereophonics concert in Wrexham in early July without permission, which was illegal, the inquiry heard.

GHA Coaches held two licences authorising the use of 146 vehicles in Wales (with bases in Ruthin, Corwen, Ruabon and Wrexham) and 80 vehicles in the north west of England (with bases in Chester, Middlewich, Winsford and Macclesfield). The firm has ceased operating vehicles.

* Forty-eight people who had worked for GHA Coaches have approached solicitors with a view to pursuing action against the firm for failing to consult with them before the redundancies.

Administrators were appointed after the firm received a winding-up petition over unpaid taxes believed to be in the region of £700,000.