Pannu speaks out about Finances

Blues acting chairman Peter Pannu has sparked fan fury after revealing he paid out more than £430,000 in ‘pocket expenses’ to Hong Kong staff.

Club accounts for the financial year to June 2012 were published on Tuesday and revealed one director had received a remuneration of £687,611.

In an email exchange with the Birmingham Mail, Pannu confirmed he had been paid the money.

But he said that £250,000 was for his own salary while the rest, accounted for in his name, was spent on ‘pocket expenses’ for visiting Hong Kong staff.

He wrote: “My pay is 250K a year. With PAYE tax, it is 50 per cent less.

“No pay rise since October 2010 when the then board gave me the UK contract.

“Rest is pocket expenses for all the HK staff that regularly comes to the UK on which full taxes are paid and accounted for through my name.”

Pannu declined to give further details of what the ‘pocket expenses’ were for, although they may include flights, accommodation and living costs for his team of assistants, who frequently travel to and from Hong Kong.

Stock Exchange expert Peter Knowles described the situation as ‘irregular’ and ‘poorly explained’.

He said: “What he appears to be saying is that the staff in Hong Kong, he is paying them from a director’s salary which is totally bizarre.

“From an accountancy point of view, when accounts report what a director is being paid that’s what the director should be getting paid.

“I’m surprised the auditors approved it.”

bluenosekev wrote:Cant be arsed reading that.

I can bet the typical load of bollox from Pannu.

Does anyone believe anything he says ?

Peter Pannu