Two businessmen have earned millions from taxpayer-funded contracts to house asylum seekers across the UK.
Safwan Adam and Bassam Gilini, directors of Stay Belvedere Hotels Limited (SBHL), have cashed in on the migrant crisis through Government deals worth hundreds of millions of pounds.
The firm has now been stripped of its Home Office contract after concerns were raised over its performance.
SBHL reported almost £705million in income in the year to September 2022, according to accounts filed with Companies House.
During this period, the firm paid out £45million in dividends to five shareholders, including Adam and Gilini.
Each director holds a 17.5 per cent stake in the company, meaning they were in line for at least £7.8 million each, according to the Daily Mail.
Safwan Adam has a background in aeronautical engineering, and runs CeX electronics shop franchises and an investment firm
YOUTUBE
Between February 2020 and December 2022, the firm reported £75.7million in pre-tax profits against a total turnover of £888.2million.
Neither director appears to have significant experience in managing immigration accommodation prior to their 2021 appointment to the firm.
Adam has a background in aeronautical engineering, and runs CeX electronics shop franchises and an investment firm.
While Gilini describes himself as a "visionary" property developer on his website, having previously operated pop-up fireworks shops and a sushi restaurant in east London.
Adam is also a Liberal Democrat donor, giving Sir Ed Davey's party over £760,000 last year.
MORE ON ASYLUM ACCOMMODATION:
- 'It's a hell hole!' Homeowners in leafy village 'struggle' to sell idyllic homes after asylum seekers move in luxury hotel
- 'We'll stop it!' Reform UK sets out grassroots plan to shut £5bn asylum hotels as Labour loses grip on migrant crisis
- REVEALED: The full list of towns where taxpayers could pay rent for Channel crossing migrants - Is your area impacted?
SBHL was offering 'luxury accommodation' at the Ibis Budget Bishop's Stortford hotel
IBISSBHL was subcontracted by accommodation firm Clearsprings, which has a £2billion annual deal with the Home Office.
The Home Office terminated SBHL's contract last month, citing concerns about its "performance and behaviour as a government supplier".
The firm has been accused of paying workers less than minimum wage, with some staff reportedly earning as little as £5.60 per hour in 2021.
Hotel owners have also claimed they were chasing SBHL for payments owed for housing asylum seekers.
LATEST ON THE MIGRANT CRISIS:
A spokesman for Yvette Cooper's Home Office said the department has 'begun to restore order' to the system it inherited
GETTY
Tim Naor Hilton, the chief executive of Refugee Action, criticised firms profiting from asylum contracts.
"Every pound that fills the pockets of these companies is a pound that could be spent in our communities," he said.
"These accommodation contracts have allowed firms to rip off the taxpayer while people seeking asylum are forced to live in housing that's harmful."
A Home Office spokesman said the department has "begun to restore order" to the system it inherited, with fewer hotels now open than before the election and more closures planned by the end of May.
