The Legal Services Commission has suspended The Shaftesbury Group’s contract to provide telephone advice for people detained in police stations for less serious offences.

As reported earlier this month, the LSC transferred a contract to provide the Criminal Defence Service (Direct) service from Bostalls to the The Shaftesbury Group after Bostalls was wound up following non-payment of taxes.

Shaftesbury is owned by the same individual who was behind Bostalls, and the service is provided by the same staff.

When Bostalls was wound up following a petition from HM Revenue & Customs, its former managing director Andy Scripture, who is now principal of The Shaftesbury Group, said Bostalls was ‘solvent on paper’.

He said he did not fight the winding up petition because he was planning to close down Bostalls and set up a new company that would enable him to diversify into other areas.

As a legal support agency not owned by a solicitor, both companies required a waiver from the Solicitors Regulation Authority allowing them to provide legal services to the public.

The SRA granted a waiver to Bostalls; a decision criticised by the Law Society, which said it would allow an unregulated commercial body to provide legal services to the public.

Scripture said he has applied for a waiver for the new company and that the LSC has suspended the contract until that process is concluded.

An LSC spokesman would not comment on why it had suspended The Shaftesbury Group’s contract, but said: ‘We are fully aware of the issues and are clear that the appropriate investigations to safeguard taxpayers’ money are being taken.’

He said the CDS Direct service is being provided by the two remaining contract holders, Midlands firm The Johnson Partnership and Leeds firm O’Garras.

An SRA spokesman said he could not comment on individual waivers, but any application would have to demonstrate both exceptional circumstances and that it is in the public interest.

See Opinion.