The owner of a Kirkcaldy private nursing agency has accused Fife Council of withholding £150,000 in an act that has brought the agency “to its knees”.
Ruth Smyth, director of Paramount Care, says recurring problems with a new Fife Council invoice payment system has left the agency engulfed by an “outrageous mess” and on the verge of withdrawing care to Fife Council care homes and homecare clients.
Paramount Care, which is based in Whytescauseway, has been delivering care services for Fife Council for more than 13 years.
Mrs Smyth said there had been odd times during these years when the firm has had to chase up invoices.
But the director said a new invoice system, brought in by Fife Council on April 1, meant Paramount Care is now owed £150,000.
Mrs Smyth said: “Since April 1 we have had one large payment of £25,000, approximately, and several very small payments. We were told we were going to be getting £38,000, but this ended up being only £25,000.
“I had a meeting with a representative for Fife Council’s social work contracts last Wednesday and, following that, was promised, last Thursday, £18,477, which would go into our bank yesterday.
“I gave him our aged debtors list showing him the clients’ due amounts, totalling £150,000. This amount, due to be paid to us, was a drop in the ocean. We also would not be able to track what clients’ invoices this payment would cover due to the new system.”
Mrs Smyth added: “We have done everything that was asked of us by Fife Council, but they admit they haven’t had adequate training on the new system. They cannot find all the information in the limited access they have to allow them to get an overall picture of what is going on.
“They admit the remittance advices they sent out by email advising the monies were in the bank were not, in fact, correct, and have since stopped sending out any. We do not know, therefore, what invoices the £25,000 covers and cannot reconcile our accounts.
“This is an outrageous mess that has brought my care agency to its knees, literally. I don’t know where else to go but to the top.
“My bank manager has been fantastic, but on Friday my staff didn’t have their money in the bank until much later, after the RBS had agreed to pay our staff.
“Our carers get paid fortnightly and are due to be paid next Friday, but I am not sure I will be able to pay them. I am sure Fife Council employees have been paid regularly and on time.
“RBS have told us that we are not alone and other businesses have been affected by this, too.
“I am almost at the stage of withdrawing care, which is a last resort, but I can’t continue to provide care when I cannot pay HMRC, rent, utilities and staff.
“If I don’t pay staff, the excellent reputation I have built up in Fife will go, too. Surely, Fife Council does not wish one of its care providers to close its doors.”
Eileen Rowand, head of revenue and exchequer services at Fife Council, said: “Officers within social work have been working with this company for some time to ensure that they receive the payments due to them.
“We are working with Paramount Care to establish which invoices are due for payment and once information is received from them, we will process payment.
“While discussions continue, it would be inappropriate to comment further on this.”