City Fraud (Hansard, 18 November 1991)

§ 29. Mr. Skinner
To ask the Attorney-General if he will make a statement on recent initiatives by the Serious Fraud Office in connection with City fraud.

§ The Attorney-General
The SFO has continued its work of investigating and prosecuting serious and complex fraud. Its objectives are to increase the efficiency of the criminal justice system in this regard, to deter fraud and to maintain confidence in our financial systems.

§ Mr. Skinner
Will the Attorney-General draw the attention of the SFO to the fact that just round the corner at Westminster city council there has been another allegation of serious fraud involving a charity called the Foundation for Business Responsibilities. The £100,000 plus received from big business and Tories in the City was used, not for charity—although the contributions were probably set off against tax—but to keep control of key marginal wards in Westminister council. It seems odd that 15 Lady Porter and her cronies on Westminster council can do as they like with the Government and the SFO—they seem to have got away with the cemeteries episode and now are involved in another big scam. While Labour councils are surcharged and kicked out of public office, Lady Porter and her cronies get away with blue murder. Why does not the Attorney-General have an investigation?

§ The Attorney-General
The hon. Gentleman does not need me to tell him, because I have told him about six times already this Parliament, that if there is evidence of criminal behaviour in any quarter it should be drawn to the attention of the police. It is due to a Conservative Government's initiative that we now have a specialist office with powers to investigate and prosecute serious and complex fraud which has brought highly effective results. The hon. Gentleman seems to find it impossible to forgive that.

§ Mr. Hind
Does my right hon. and learned Friend agree that the SFO is extremely effective? By far the highest number of prosecutions brought to a successful outcome at the Old Bailey are connected with fraud. Does my right hon. and learned Friend agree that the extra powers of the SFO have resulted in those convictions? Long may the SFO continue to get to the bottom of many of the complex frauds which the hon. Member for Bolsover (Mr. Skinner) wants us to look at.

§ The Attorney-General
I agree entirely with my hon. Friend that the powers that Parliament has given the SFO were necessary and are being well used in the interests of justice. The SFO is greatly admired in many other countries; people come here to find out how it goes about its business and what powers it has. It sets an example which is being widely followed and co-operates effectively with other organisations overseas. It is a success story of which the House can be proud.

§ Mr. Fraser
Will the Attorney-General reconsider his dismissive answer to my hon. Friend the Member for Bolsover (Mr. Skinner) about what has been described in the quality papers as the Porter slush fund? Does not the Attorney-General have special responsibility, first, as a Tory, secondly, as the person who supervises prosecutions and, thirdly, as the Minister with responsibility for charities? Does he agree that probity, like charity, should begin at home? Will he set in hand an investigation into whether charitable funds were improperly used in Westminster to influence election results in favour of the Conservative party? Will he at least undertake to the House that he will set in hand that investigation?

§ The Attorney-General
If my reply to the hon. Member for Bolsover (Mr. Skinner) was dismissive, it was because it is right to dismiss bald assertions of crime when no investigation has been carried out. If there are matters that should be investigated by the police, the police should be told of them.

§ Mr. Tony Banks
It was on the front page of The Observer.

§ The Attorney-General
Then that is the answer to the hon. Members for Bolsover and for Norwood (Mr. Fraser). There is no desire on the part of the Government, 16 the prosecuting authorities or myself, holding responsibility for the interests of charities, that anything improper should be covered up. That has always been so and it will continue to be so.