Greater than seven years after Dame Linda Dobbs was appointed to research whether or not Lloyds Banking Group lined up a £1 billion fraud scandal at HBOS, the victims of the scandal are nonetheless ready for solutions.
The overview, initially anticipated to take a matter of months, now dangers turning into one of many slowest official stories in British historical past, with rising accusations that it might be compounding the alleged cover-up.
Dame Linda Dobbs, a former Excessive Court docket choose, was tasked in April 2017 with analyzing Lloyds’ response to a fraud linked to the Studying department of HBOS, which the financial institution had acquired in 2009. The fraud concerned bankers and consultants exploiting reckless credit score insurance policies, resulting in the collapse of a number of small and medium-sized companies. Six folks had been jailed in 2017 for his or her roles within the rip-off, together with Lynden Scourfield, a banker at HBOS, and David Mills, the ringleader of Quayside Company Providers, a consultancy agency that exploited HBOS purchasers.
Regardless of Lloyds ultimately acknowledging that victims suffered because of Quayside’s actions, many victims, together with media character Noel Edmonds, concern that the drawn-out overview course of is defending these on the high from accountability. Edmonds, whose firm Distinctive Group was a sufferer, has in contrast the Dobbs overview to the infamously prolonged Edinburgh Tram inquiry, which took almost 9 years and have become extra controversial than the problem it was set as much as examine.
In line with a senior banking supply, Lloyds and HBOS executives had been conscious of the problems on the Studying department as early as 2007 however selected to pursue money owed from affected companies fairly than addressing the fraud. “As an alternative of proudly owning up and redressing the problem, they determined the best choice was to additional destroy companies hoping that may eliminate the issue. It appears fairly clear-cut to me,” the supply mentioned.
Paul and Nikki Turner, homeowners of the music publishing enterprise Zenith, which was ruined by the fraud, expressed their disillusionment with the overview’s progress, accusing Lloyds of hoping the reality would by no means emerge. In correspondence with the overview’s counsel, Adam Wiseman KC, the Turners questioned whether or not they had misplaced their religion within the overview’s integrity. In response, Dobbs reassured them that her “no stone unturned” strategy remained the target, although the overview continues to be accepting new data as of this 12 months.
The Dobbs overview is investigating claims that Lloyds lined up the HBOS fraud, pissed off police investigations, and exacerbated the struggling of victims. The scope of the inquiry is in depth, involving oral and written proof from quite a few witnesses, and a overview of tons of of 1000’s of paperwork spanning almost twenty years. Nonetheless, as a non-statutory inquiry, Dobbs can not compel witnesses to take part, which has contributed to delays.
The overview’s progress has been sluggish, with advanced and time-consuming processes for dealing with confidential paperwork lined by authorized skilled privilege, in addition to difficulties coordinating witness availability. Though the drafting of the overview has begun, vital evaluation continues to be excellent, prompting calls from throughout the business for extra transparency. Some victims have instructed that Dobbs ought to publish an interim abstract to supply readability on the overview’s findings to date.
Mark Brown, Common Secretary of BTU, the impartial commerce union for Lloyds workers, criticised the protracted nature of the inquiry and instructed that Lloyds is likely to be content material to see the investigation “kicked into the lengthy grass.” He urged Dobbs to call these accountable for delays and to carry Lloyds accountable for its function in prolonging the overview.
Lloyds has already incurred £1.3 billion in prices associated to the scandal, together with the prices of compensation schemes and the continued overview. The financial institution maintains that it’s cooperating absolutely with the inquiry and has apologised to prospects affected by the fraud. A spokesman for Lloyds said, “Our intention has at all times been, and stays, to supply truthful and beneficiant compensation.” The financial institution has dedicated to offering a replica of the ultimate report back to the Treasury Choose Committee as soon as accomplished.
Dame Linda Dobbs stays adamant concerning the significance of an intensive investigation, stating, “The place severe allegations have been raised concerning the adequacy of previous investigations, I owe it to these victims to conduct a complete inquiry and attain sturdy conclusions. Meaning no brief cuts.” Because the overview nears its ultimate phases, the victims and the general public proceed to await a full account of what went unsuitable and who needs to be held accountable.