Former Wolverhampton councillor did not act dishonestly over 'fraud' Covid grant, court hears

Harman Banger and Neena Kumari are both appealing a conviction of fraud by false representation over the funding application made during the first lockdown.

Birmingham Crown Court, which is hearing the appeal, heard Banger had been in contact with Wolverhampton Council to update rate relief records in April 2020.

The then-councillor sent over a list to update the register including businesses of no-connection to him and the records of Pizza Plus, based at The Orchard in Bilston.

It meant Kumari, Banger's wife, was added as the ratepayer of the business as of October 1, 2019, meaning she would be eligible for the grant, the appeal heard.

Prosecutors claim there was "no active business" being run from the premises by March 11, 2020, a requirement of the grant, with changes made retrospectively.

Banger, who was cabinet member for city economy, told the hearing it was his wife who made the £10,000 grant application and he had been updating the council.

When questioned by his barrister Michael Goodwin KC over whether Banger felt he was doing anything improper, or dishonest, the appellant said: "No, not at all."

The hearing – presided over by Judge Peter Carr and two magistrates – was told Kumari had been asked for information on three occasions by Wolverhampton Council to support the Covid-19 grant application.

Birmingham Crown Court was told she was asked to provide a utility bill from suppliers NPower who had not been advised of the change of rate payer by Banger, who said it was the responsibility of Kumari.

The former councillor spoke to the energy firm and it was agreed a bill would be sent out, but this didn't happen with Kumari being informed there had been difficulties over the lockdown period.

Kumari informed the council she did not have accounts for 2018-2019, due to her business starting in October 2019, and told them it was "cash-in-hand" and she was not set up on websites like JustEat, the court heard.

Mr Goodwin KC asked Banger if he provided anything to Wolverhampton Council which was untrue or misrepresented in any way over the application process, to which the former councillor said "no".

The court heard a text had been received by Banger from his older sister who said "Harman, yes, we can go ahead with the Pizza Plus thing" – which the prosecution claimed was evidence of him trying to sign up his sister to the application, rather than his wife.

But the appellant said it was regarding a suggestion of his sister going into business with his wife and the response – "too late, used someone else" – was to say his wife had found another business partner, which he lied about so as not to cause any family arguments with Kumari not keen on the partnership.

A video of the interior of the business filmed after lockdown, shown to the court earlier in the appeal hearing, had found old letters and correspondence on the floor with the premises being left "filthy" according to prosecutor Mr Daniel Oscroft.

The former councillor, of Bilston Road in Wolverhampton along with his wife, said he had visited his JSB Properties business nearby in April 2020 and discovered "water dripping down" from above the pizza restaurant.

He went upstairs, to a storage room above the restaurant, and discovered "water spraying out everywhere" from a burst pipe, with the business below "basically flooded" because of this.

And when asked by his barrister if he was aware of any rat or rodent issues at the premises before lockdown, with rat droppings having been discovered there, Banger said he was not aware of any – "but there's a rat problem in Bilston generally".

The former councillor said he was "just shocked" when he was later arrested, and when questioned whether he made up a business to support a fraudulent application he replied "no". And when asked whether he did anything other than provide what he believed was the truth over updating the rates record, Banger responded that was "right".

The hearing continues.