IT contractors: This is where your money goes

The Professional Contractors Group (PCG) has paid nearly £750,000 in fees to companies owned by some of its most senior figures.

The PCG's accounts for 2001 reveal that the PCG paid web design company Webtastic £488,888 in consultancy fees.

The main shareholders and directors of Webtastic are Andy White, who is also the founder of PCG, and Kevin Miller and Susan Hughes, both of whom are members of the executive team at PCG. The executive team is the collective name used by the PCG to describe the suppliers who provide the day-to-day services to keep the group up and running.

Kevin Miller is the finance director of PCG, and Susan Hughes is press officer for the group.

PCG also paid £169,167 to Susan Hughes Associates for PR work and other activities. Andy White owns 25 per cent of the shares in Susan Hughes Associates, and Kevin Miller 15 per cent.

The PCG accounting documents for the tax year 2001 ending 30 April state the following: "As last year Webtastic Ltd, a company of which A.F. White is the majority shareholder and director, provided the bulk of services in respect of the day-to-day running of the company... The amount of the services charged in the profit and loss account for the year amounted to £488,888.

"With effect from 1 September 2000, the company appointed Susan Hughes Associates to provide management and publicity services. A.F. White and K.G. Miller are directors and minority shareholders of this company. The amount of services charged in the year amounted to £169,167."

Susie Hughes, who is the spokeswoman for PCG in addition to being the director of Susan Hughes Associates, confirmed the figures and told silicon.com: "All of the contracts were awarded by the PCG board of directors in a fair manner. It's a standard business practice for any small to medium-sized business. Our accounts are in order and available in the public domain for anyone who wants to read them."

Up to April 2001, the income from PCG subscribers was £1.1m. PCG's accountant is Hopper Williams and Bell, based in Southampton.

Gerry McLaughin of contractors' reunion site NamesFacesPlaces.com helped silicon.com with this story.