Riots victim: David Cameron said he’d help us but we've seen nothing

 
P31 Kanagaratnam Paramanathan Pic:Alex Lentati
Alex Lentati
Maxine Frith20 March 2013

A shopkeeper whose jewellery store was ransacked in the 2011 riots is facing bankruptcy within weeks because of delays in the Government paying him compensation.

Kanagaratnam Paramanathan has accused David Cameron of reneging on a personal promise to help him, made when the pair met in Croydon the day after the riots.

He also claims the Prime Minister ignored a letter he sent three months ago in which Mr Paramanathan warned that he and his family were “on the brink of losing everything”.

Owners of other small businesses in Croydon say they are also facing ruin because of the low amount of compensation offered under the Riot (Damages) Act and delays in making payments.

Mr Paramanathan has spent almost 30 years building up a fashion and jewellery store called JK Gold and Fashion House, as well as the Dosa Lounge Indian restaurant in Croydon.

But the store was ransacked during the riots and the restaurant was also attacked, costing him £450,000 for damage and stolen goods.

He was among the riot victims who met Mr Cameron the day after the riots and was promised swift compensation. He took out temporary loans and overdrafts to cover the cost of reopening his businesses but has now been warned by his bank that he has 30 days to repay his debts or he will be taken to court.

A loophole in his policy meant he has only received a small amount from his own insurers and he is still waiting for an acceptable payment to be agreed under the Act, which was supposed to cover uninsured contents.

Mr Paramanathan said: “I have spent 26 years setting up these businesses and I’ve worked 16 hours a day, seven days a week, to make them successful but now I am facing bankruptcy because of the riots and the delays to compensation.

“I feel very let down. When I met Mr Cameron he promised to help out but when I wrote to him three months ago I didn’t even receive a reply.

“I wrote to Prince Charles at the same time and got an acknowledgment and then someone from his charity came out to give me advice.

“The amount I was offered under the Riot Act didn’t go anywhere near what I had lost. I am still waiting for a new offer but I could lose everything.

“I employ 20 people and they could lose their jobs. It is very worrying.”

His friend Kanagaratnam Kanendran, whose Londis store was burned to the ground, has also racked up debts of £100,000 while waiting for compensation to be paid. He said: “All my life savings are gone. If nothing changes in the next six months I will have to declare bankruptcy as well.”

Police and criminal justice minister Damian Green said: “Police and Crime Commissioners have paid 98 per cent of all uninsured claims resulting from the shocking outbreak of violence we saw in the summer of 2011.

“Due to the complexity of some cases, it has taken longer than we hoped to resolve these claims but we are working closely with all interested parties in Croydon and aim to make progress on their claims shortly.

“The Home Office is reviewing the Riot Damages Act to ensure it protects the most vulnerable and provides value for money for taxpayers in the future.”

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