Charity's £4 million investment breaks rules
21 Dec 05
Shetland Charitable Trust guilty of breaking EU state aid regulations
A Shetland charity has been found guilty of breaking European state aid regulations after investing in a local fish processing firm.
Shetland Charitable Trust had paid £4 million into Shetland SeaFish through its commercial and property section, Shetland Leasing and Property. The fish company is currently in the process of being sold to a private buyer.
A two-year investigation into the payments found they were illegal.
The trust, which administers some of the millions of pounds Shetland accrued from the oil industry, was also reprimanded by the European Commission two years ago for a £2.5 million investment in fish quota. However, the EC will not be seeking repayment from the trust as it accepts, as it did with the previous £2.5 million investment, that the trust was advised at the time that this was a legitimate investment.
Shetland Islands Council said the news that the EC was not seeking repayment was good news as it meant that Whalsay fish factory would not need to close. The council is currently in talks with the government and council officials to find a way for the community money from the oil industry to be invested locally without the fear of legal action.