A POLICE investigation has been launched into the circumstances surrounding the financial "irregularities" that led to the sudden shutdown of a leading Scottish arts company.
Strathclyde Police has begun an investigation into the collapse of New Moves International (NMI), a Glasgow-based arts company which was wound up by its board of directors late last year. Economic Crime Unit officers are involved.
As first reported in The Herald in December 2011, the company, whose artistic director and chief executive Nikki Milican was awarded an OBE in 2009, was wound up by its board of directors soon after they discovered problems with its finances.
The 2012 New Territories festival, which was due to feature dozens of artists and was organised by NMI, was also cancelled.
NMI was considered and funded as one of the nation's most important arts companies, being one of the 60 "flexibly funded" bodies supported by Creative Scotland, with a sum of £230,000 for 2011/12.
The company was also funded with significant sums from the Culture Programme of the EU and Glasgow City Council.
It was part of a €2 million (£1.6m) arts project called A Space for Live Art, involving eight organisations from eight different EU countries, funded by the EU Culture Programme.
The directors of the company last year reiterated their support for Ms Milican and her efforts in gathering information on what had happened.
A Strathclyde Police spokeswoman said it is investigating NMI, but added inquiries were at an early stage.
In a statement, Creative Scotland said: "We will fully co-operate with any investigation by the relevant authorities into any alleged criminal activity."
Last year, a letter sent to creditors and artists by the directors said the company had ceased trading on November 30, 2011.
It said the company had been closed because "the company has suffered cashflow difficulties due to irregularities, which are currently being investigated, and there is no possibility of any further capital being injected to refinance the company."
The company informed creditors and artists it has "little or no realisable assets and as such there are insufficient funds available to meet the costs of a formal liquidation".
Ms Milican's work in dance and live art has been hailed as being influential in the arts scene, and the New Territories festivals had shown Scots audiences cutting-edge live art and performance art from across the world.
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