Concerns over criminal activity linked to Innovation Fund

From the Jersey Innovation Fund website

A damning report by Jersey's government watchdog has raised concern about suspected criminal activity by third parties linked to the Innovation Fund.

The Auditor General, Karen McConnell, also highlights that the Economic Development Department seriously failed to manage or monitor the States loans given out to six start-up companies.

She added that she is considering reporting the possible criminal activity to the Attorney General.

Jersey's government is now at risk of losing £1.4m following strong doubts that the loans will ever be fully repaid.

Since the Innovation Fund was set up in 2013, seven loans totalling almost £2.1m have been given out with the aim of promoting innovation and helping to diversify the economy.

However, it was announced last year that digital company Logfiller Ltd had gone into liquidation, owing the government more than £600,000.

The companies who have borrowed money from the Fund are:

  • · Stumpydog Innovations Ltd: To develop and distribute a new playpen for babies.

  • · Total Billing Solutions Ltd: To develop a medical billing system for businesses operating within the health care sector in Jersey and the UK.

  • · Snap Ring Joint Limited: To develop a solution for connecting and repairing pipelines in the oil & gas sector.

  • · Logfiller Ltd: To develop and distribute a computer software solution that measures the actual user experience and system use.

  • · Sideplay Entertainment Limited: To develop and distribute Instant Win Games (IWG) content to online gaming operators and lottery organisations.

  • · Proviz Limited: To develop and distribute high visibility sportswear and accessories into international markets.