A greenfield financial management company has been shut down by its owners, according to its former CEO.
The Stirling Company was set up in 1999 to help manage the land and property owned by the tramways Tramway Company Limited and the City of Stirling and was one of several financial management companies that was founded to help the tram companies manage the greenfields and other development projects.
Stirling’s founder, David Wicks, was a former CEO of the tram company and served as a director for a number of other firms in the industry.
“I am disappointed to say that the company is no longer operating and is closed,” Wicks told The Hill.
His comments came a day after The Stirling Times reported that a former director of the company, who did not wish to be identified, was suing the company and the city over a $3 million wrongful termination claim.
He claims that he was fired from the company because of his association with the tram projects, which he said were his only means of livelihood and that he “was not allowed to use his company’s assets for personal or commercial purposes.”
“If I were to have lost this case, the impact would have been enormous, as I am not sure what the outcome of the case will be,” Wickers said.
According to Wicks’ lawsuit, his termination from the Stirling companies was “because of the lack of progress made in the implementation of the greenfield development plan,” and the tram project had been put on hold by the previous administration.
It was also because the company had “not been able to maintain or improve the quality of the management, legal, financial and legal advice provided by its consultants,” the lawsuit claims.
Wicks said that the lawsuit was “not a surprise” to him and he was “surprised that I was told by the city that this was an issue.”
According the lawsuit, Stirling had been operating with a budget of $3.2 million a year from 2002 to 2016, but in February of this year it was told that the tram-related projects had been “terminated and that there would be no further payments to the company.”
After the termination, “the company’s financial and operational resources were being reduced and the company’s budget was reduced as a result,” according to the lawsuit.
However, Wicks said the company continued to operate and that the “management of the projects, and other aspects of the city’s greenfield strategy and strategy for the development of the Stirlings property were being managed on a daily basis.”
“It has been estimated that the entire budget of the business was reduced by over $1 million a day,” he said.
Wicks also said the City had been told that “an estimated $100 million had been diverted to the tram and greenfields development by the Statham Group, which was the legal entity that was running the projects.”
The city and the Stathomas have both denied any wrongdoing.