We will await with much interest the outcome of the NI Audit Office report into the £2.5m Invest NI loan to Wrightbus

This investigation is the proper course of action, which should provide an independent assessment of the support provided by Invest NI, the industrial development arm of the Department of the Economy, which is directly responsible for providing financial assistance to NI businesses.

The NIAO will undoubtedly look at a wide range of issues thrown up by the developments at the company leading up to its administration.

Firstly, what other financial assistance agreements apart from the £2.5 million loan assistance, were in existence between the company and Invest NI prior to administration?

From my knowledge it would be common practice for any such agreements to include a restriction in dividends over the duration of the assistance and subsequent grant clawback period to ensure that taxpayers’ money was not used to finance non-business related activities.

If no such conditions were in place, then this is an important issue for Invest NI to address, but in the absence of any dividend restrictions there was nothing in principle at least, to prevent the company from paying dividends to its parent company, Cornerstone.

Secondly, what commercial assessment was carried out by Invest NI before it provided the £2.5 million rescue assistance and what were its conclusions and the terms and conditions attaching to that support?

For example, was the loan secured on assets and/or guaranteed by the parent company and what is its current status? The NIAO will of course have full access to that report and the related negotiations which should throw some light on these issues.

Thirdly, why did the directors of Wrightbus declare the payment of dividends to the parent company when they must have known — or ought to have known — the impending difficulties facing the business which led to its administration only months later?

The issue of wrongful trading and its potential impact on the funding of the company and on its supply chain are clearly areas which demand further investigation.

And finally, there is the question of the role of the auditors and whether they had flagged up any concerns in their last audit report about the going concern basis or solvency of the business.

We will await the outcome of the NIAO report with much interest.

RD Lynn, Ballymena