An unbiased assessment into whether or not Lloyds Banking Group hid a £1 billion fraud linked to HBOS could by no means be totally disclosed, prompting accusations that the financial institution “cannot face the truth.”
The assessment, led by Dame Linda Dobbs, examines Lloyds’ response to a fraud scandal on the Studying department of HBOS. The incident, which emerged after Lloyds rescued HBOS in 2009, concerned bankers and consultants exploiting free credit score insurance policies to siphon funds from the financial institution. Lynden Scourfield, a key determine within the scandal, organized for struggling companies to rent consultants from Quayside Company Companies, a bunch that profited handsomely from these preparations. The rip-off devastated scores of small and medium-sized companies and left tons of extra reeling from the fallout.
The scandal culminated in 2017 when six people had been convicted, and Choose Martin Beddoe remarked that victims had been left “cheated, defeated and penniless.” Since April 2017, Dame Linda has been investigating claims that Lloyds had hid its information of the fraud. Initially, the assessment was anticipated to be accomplished inside just a few months, however greater than seven years later, it stays unfinished.
Members of the Treasury committee had anticipated receiving the complete, unredacted report, however Lloyds now seems to be backtracking on this dedication. A spokesman for the financial institution said that it might solely share the “findings” of the assessment with MPs, resulting in confusion over what is going to truly be disclosed. This stance contrasts with earlier statements made in 2018 by then-committee chair Nicky Morgan, who welcomed Lloyds’ “commitment” to offer the unbiased assessment in full. Morgan had anticipated MPs to obtain the identical report because the Monetary Conduct Authority (FCA).
Dame Linda confirmed that the assessment could be ready in a means that allowed it to be made public, however it’s Lloyds’ determination whether or not to share the report or restrict entry to chose findings. The dearth of readability has prompted concern from these carefully concerned within the case. Paul and Nikki Turner, whose music publishing enterprise Zenith was destroyed by Quayside, performed a key position in uncovering the fraud. The couple, who met with the assessment group 16 occasions and submitted over 10,000 paperwork, stated they anticipated full transparency.
“What does Lloyds mean by ‘findings’? It’s clear as mud,” stated Paul Turner. “If the bank is not to provide the report itself to MPs and the public after all this time and enormous cost, it is a sad reflection that they simply cannot face the truth.”
The Treasury committee, now led by Dame Meg Hillier, declined to touch upon the financial institution’s current place, whereas Morgan didn’t reply to requests for her views. Lloyds, in the meantime, has refused to make clear whether or not it believes there was a misunderstanding over its earlier assurances to offer the report.
The fraud, initially estimated to have price £245 million, is now believed to have brought on losses nearer to £1 billion, based on an inside assessment commissioned by Lloyds. Regardless of this, the financial institution’s present stance on the disclosure of the Dobbs report has forged doubt on whether or not the complete particulars of its dealing with of the scandal will ever be made public, prolonging the uncertainty for victims and campaigners looking for accountability.
