Two Darlington town centre restaurants have lost their licences to sell alcohol after employing illegal workers.

The owners of Bambudda and TAO Asian Street Food were told they were not “fit and proper people” to own the businesses and were accused of people trafficking. 

Durham Constabulary and the Home Office raised serious concerns over the management and treatment of staff at a Darlington Borough Council licensing hearing on Tuesday. 

Immigration officers visited the two Asian restaurants on July 3 and made several arrests after discovering six people working illegally across the two sites. 

Benjamin Wu, owner of Bambudda and TAO, was arrested after officers found people, including a mother and toddler, living in poor conditions above the TAO restaurant on Blackwellgate. 

Bambudda, on Gladstone Street, Darlington. Bambudda, on Gladstone Street, Darlington. (Image: The Northern Echo)

Mr Wu, and his business partner Bich Thuy Nguyen (also known as Lucy), said they were not responsible for employing kitchen staff at Bambudda, did not know some of the staff, and were in the process of selling the business. 

However, the Home Office argued: “It seems impossible for the licence holder not to know the workers, given they were working at his business and living in the flats above his other business.”

Durham police said Mr Wu was “obstructive” towards officers during the raids but he insisted, “I co-operated fully and complied with the requests. I felt the situation was discriminatory towards me.” 

He added: “We have revitalised spaces that were previously vacant, boosted the local economy, created jobs, served the community, and contributed to local events. We have provided shelter to minority ethnic groups and individuals in need. I have seen the positive impact on employees while working with us. 

“My partner and I have worked very hard to establish a successful local business with excellent feedback.”

Mr Wu also argued the lives and jobs of the 20 people he employs across both sites would also be impacted. 

Lucy told the hearing that it is part of their culture to help provide food and shelter for people in need and didn’t wilfully employ anyone without the correct paperwork. 

“We acknowledge we didn’t manage it well and we want to take responsibility for that,” added Mr Wu. 

Committee member Kevin Nicholson told the hearing he was “horrified” to learn how people were being treated and vowed to make a decision that prioritised public safety and protected vulnerable people. 

Following the raids, Durham police said the owners created new companies to transfer ownership of the restaurants. 

TAO Asian Street Food, on Blackwellgate, Darlington. TAO Asian Street Food, on Blackwellgate, Darlington. (Image: The Northern Echo)

Joanna Henderson, Home Office enforcement officer, said: “Whether by negligence or wilful blindness, there were illegal workers at the premises. 

“We don’t want to restrict genuine community services and businesses but we have concerns about these businesses and how they were run. There needs to be a significant remedy to this.”

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Bambudda, at Gladstone Street, and TAO, at Blackwellgate, are unable to sell alcohol but the businesses can remain open.

Councillor Sonia Kane, chair of the licensing committee, ruled: “We have decided to revoke the licences. We don’t feel you are fit and proper people to run a restaurant. 

"For what appears to be people trafficking, Darlington Borough Council takes a very strong stance against people abuse and we won’t take it in any form.” 

An earlier version of this article reporting from discussions in the Darlington the Licensing Act Sub-Committee  incorrectly stated that the businesses mentioned have been closed down. Following confusion in the meeting, we are happy to clarify that it is the licence to sell alcohol has been removed by the committee but the businesses can remain open. We apologise for any confusion.