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Boss of collapsed firm faces fraud allegations





The gates closed for business at HQC back in June 2010 with the loss of 77 jobs
The gates closed for business at HQC back in June 2010 with the loss of 77 jobs

A LEADING businessman whose company collapsed with the loss of 77 jobs has been charged in connection with an alleged fraud.

Gary MacDonald, the former director of civil engineering firm Highland Quality Construction (HQC), was arrested by police on 24th January.

Northern Constabulary yesterday declined to go into further details, confirming only that a 43-year-old man had been arrested and charged. In accordance with normal procedure, a file will be passed to the procurator fiscal.

Mr MacDonald could not be contacted but his legal representatives, BBM Solicitors, of Wick, rejected the allegations.

"Our client’s position is that he categorically denies any fraudulent activity," they said in a statement. "As you are aware there is an ongoing police investigation and our client cannot comment further at present."

The closure of HQC in June 2010 sent shock waves through the region’s business community. Based in Lotland Street, Inverness, the company founded by Mr MacDonald in 2001 grew rapidly into one of the Highland’s best known civil engineering firms with work throughout Scotland. Turnover reached £20 million and the workforce peaked at 160.

HQC’s high-profile contracts included working on the new Glendoe hydro-electric power station near Fort Augustus for SSE; Inverness Airport; an A9 overtaking lane at Moy and a new junction on the A9 at North Kessock. It was also a sub-contractor on the M80 Haggs to Stepps project in the central belt.

However, it was hit by the economic downturn and a lengthy contractual dispute with HMC, the main contractor on the M80 project, which led to payments being delayed.

On 2nd June, 2010, HQC ceased trading, along with sister company Kenneth Stewart (Strathpeffer) of which Mr MacDonald was a director, and parent company The MacDonald Group of Companies.

Blair Nimmo and Neil Armour of accountants KPMG were appointed joint administrators.

Mr Nimmo, head of restructuring for KPMG in Scotland, said at the time: "Unfortunately HQC experienced significant trading losses and cash flow pressures and was owed significant amounts by contractors.

"Despite having an excellent reputation, like many other businesses in the construction sector it has suffered from the downturn and the difficult economic conditions."

Companies House describes HQC as currently being in receivership.


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