BIS checks criminal allegations against Sir Fred Goodwin
The Department of Business (BIS) has instructed lawyers to establish if Sir Fred Goodwin has a criminal case to answer following The Daily Telegraph’s revelations that former directors at Royal Bank of Scotland may have broken accountancy laws.
By Louise Armitstead, and Jamie Dunkley, Telegraph
The head of the Insolvency Service at BIS, which is already investigating whether RBS’s former directors could face civil charges, has asked his legal team to check the criminal allegations too. The legal counsel is expected to return its opinion "within days" according to an insider.
On Wednesday The Daily Telegraph revealed that the Financial Services Authority’s report into the collapse of the bank may have unearthed evidence that could be used to prosecute directors under the Companies Act. In their report investigators said "RBS appeared uncertain of its capital position at critical times." They added: "So, at best, compliance was only established on a retrospective basis."
The Companies Act says directors must be able to "disclose [their company’s] financial position with reasonable accuracy at any time".
On its website BIS says it "often" prosecutes "malpractice by company directors in relation to the keeping and preservation of company accounting records". Penalties are "punishable by a maximum penalty of 2-10 years imprisonment and/or a fine."
Keep reading: BIS checks criminal allegations against Sir Fred Goodwin – Telegraph.
