There is fresh controversy over a business improvement company criticised for financial mis-management after minutes of a board meeting appear to show a private company operating high street CCTV was allowed to use the system for private surveillance.

E11 BID in Leytonstone, which was found to be poorly managed and riddled with debt over a number of years, is currently in dispute with a number of businesses who are refusing to pay a levy due to the way it has been run.

In October 2010 documents show the company paid Cardinal Security Ltd £23,485.90 to manage CCTV in High Road.

However, minutes of a board meeting in January 2011 state that the firm, which carries out covert surveillance for clients, was allowed to use the cameras for its own private use.

Home Office guidance in the 2013 Surveillance Camera Code of Practice states that use of cameras must always be clearly defined, transparent and address a pressing need.

These include national security, public safety, the economic well-being of the country and the prevention of disorder.

But it is believed E11 Bid was struggling to pay Cardinal at the time when the decision is recorded as being made.

Bid director, Fawad Sheikh, has denied any such deal was struck with Cardinal.

He said: “We in no way allowed them to carry out private surveillance work in the town centre.

“Cardinal Security is one of the main security providers within the country and services other organisations within the borough, including Whipps Cross Hospital.

“They were selected to take the lead in the set up and delivery of the new ShopWatch and PubWatch schemes as well as to carry out the groundwork for the establishment of the Business Crime Reduction Partnership - within Leytonstone first and then Waltham Forest as a whole.”

At that time businesses were provided with radios to share information and crime in the area was cut by half, according to E11 BID.

As well as the long-running financial problems with the company, Mr Sheikh has himself fought off bankruptcy following action by Waltham Forest council.

An initial winding up order was sought over thousands of pounds in unpaid business rates following a review of his accounts.

Mr Sheikh, who runs a shop selling e-cigarettes and accessories in Church Lane, said he has since he found all relevant and agreed to pay £2,100.

If he had been made bankrupt, it would be illegal for him to own or chair any business.

Mr Sheikh he believes the council tried to ‘dig up dirt’ on him.

A Cardinal staff member claimed the company does not carry out private surveillance, despite its website advertising services including covert surveillance. 

Question marks remain over the allocation of hundreds of thousands of pounds of taxpayers' money to E11Bid from Waltham Forest council, with missing or incomplete contracts, no evidence of monitoring or proof of value for money.