The director of a Glasgow-based company, Datadesk Computer Services Ltd, has been disqualified from acting as a director for seven years for failing to keep adequate accounting records, following an investigation by the Insolvency Service.

Alan Coffey's company was set up in 1989 and went into liquidation in February 2012 with no assets and liabilities to HMRC of £134,174 and other trade creditors of £10,608. Datadesk's main work was to provide computer hardware and support to corporate clients, but following a downturn in the computer business, Coffey diversified and approached a third party, representing himself as an individual with international buying experience and contacts in the coffee industry and going on to make coffee purchases delivered to an associated company under his control.

The Insolvency Service said Coffey's failure to maintain or preserve adequate accounting records meant it was not possible to verify if £312,266 paid out of the bank account was for the benefit of the company. This included over £123,141 paid to a company which holds petroleum exploration and extraction rights in Sierra Leone, West Africa and £26,000 paid for the purchase of coffee and related products. In addition, there were unexplained cheque payments totalling £79,038.

Robert Clarke, head of insolvent investigations North, at the Insolvency Service, said: 'Keeping proper records is a pivotal duty for directors and there is no place in the business environment for those who neglect their responsibilities in this area and cover up the activities of the companies they manage.

'The lack of records in this case made it impossible to determine whether there was other, more serious, misconduct at Datadesk and that is reflected in the lengthy period of disqualification.