Darling urged to back SFO investigation (North Tayside Liberal Democrats)

North Tayside Liberal Democrats <info@libdems.org.uk>

Darling urged to back SFO investigation

January 26, 2009 2:13 PM
Originally published by Scottish Liberal Democrats

Tavish Scott, leader of the Liberal Democrats in Scotland has written to the Chancellor urging him, on behalf of the British taxpayer who holds a 70 per cent stake in RBS, to consider referring the bank's losses to the Serious Fraud Office.

In his letter, Mr Scott wrote:

"Investors around the world have been shocked to learn of the enormous losses incurred by the Royal Bank of Scotland. The losses are even more disturbing when we bear in mind that the company was offering a rights issue for £12bn from investors last April.

"The taxpayer, through the action of the Government, is now a substantial shareholder in RBS. That means that we all have a direct interest in the way the company has been managed. Even before the extraordinary steps the Government took in the Autumn to acquire the large stake in the company there were many public sector authorities and pension funds alongside tens of thousands of others who were investors in RBS.

"The question that I wish to raise with you is whether the actions of the senior executives at RBS constitute fraud. To what extent were they aware of the perilous state of the bank's finances; and to what extent did they disclose that information when they sought £12bn of additional investment from investors?

"Were investors given the information that would have allowed them to make a prudent judgement before investing their money?

"This matter would merit investigation by the authorities most experienced in looking at these matters, the Financial Services Authority or the Serious Fraud Office.

"I hope that you will assist in this matter by giving instruction for formal investigations to begin."