Nine year ban for big boss’s red fuel folly

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The head of a freight transport firm got into hot water when he illegally used red diesel to fuel his fleet.

Denny man Scott McLung (47) “put his financial interests above all else” and showed “blatant disregard” for fuel legislation while he was director of SDS Logistics (Bonnybridge) Ltd, based in Leslie Park, Denny, for six years until it went into liquidation and ceased trading in 2016.

A subsequent investigation by the Insolvency Service found that between May 2014 and April 2016, SDS Logistics misused close to 1.7 million litres of rebated gasoil – or red diesel as it is commonly known – which is illegal to put in vehicles used on public roads.

SDS Logistics’ misuse of the fuel was first detected when HM Revenue and Customs visited its premises in April 2016 and found four vehicles had been misusing red diesel. HMRC levied an excise duty of £790,456 and a penalty of £553,210, but SDS Logistics failed to pay, leading to its liquidation.

In February this year Mr McClung gave a disqualification undertaking to the Insolvency Service, which was accepted by the Secretary of State, on February 21.

The disqualification, which prohibits Mr McLung from acting as a director of any company, came into force last month and runs until March 14, 2027.