Perth campaigner's fury over Farepak compensation scandal

Nov 10 2009 by Andrew Welsh, Perthshire Advertiser Tuesday

PERTHSHIRE campaigners hit out yesterday after it emerged that administrators have pocketed half the cash recovered from a collapsed festive hamper firm.

Customers who saved regular sums of money through a gift-voucher scheme run by Farepak have been waiting for compensation since the company went into administration three years ago.

But now it seems that those who ploughed their spare cash into the firm’s Christmas pay-back initiative can expect to retrieve only 5p for every pound they lost.

Perth and North Perthshire MP Pete Wishart, who has campaigned on behalf of former Farepak customers, hit out at the failure to publish a report on the firm’s multi-million pound collapse.

“Reports suggest that of the £6 million recovered so far, £3 million has been swallowed up paying the bills of accountants and lawyers,” he said yesterday.

“Meanwhile customers, whose weekly savings disappeared when Farepak collapsed, are expected to receive only 5p for every pound lost.

“It is a real slap in the face after three years. The ordinary folk who were the innocent victims of Farepak’s sudden demise have come last in the queue at every turn.

“Now they have to watch as the people charged with recovering the money that was lost are pocketing more than they are giving back.

“I sincerely hope that this situation can still be resolved and a fairer compensation package offered to the Farepak victims.”