BCCI (Hansard, 17 March 1993)

§ 10. Mr. Gunnell
To ask the President of the Board of Trade how many companies have been taken to court by Touche Ross acting in their capacity as receivers for BCCI.

§ The Parliamentary Under-Secretary of State for Corporate Affairs (Mr. Neil Hamilton)
The joint liquidators of BCCI have sought sanctions pursuant to the provisions of section 167 of the Insolvency Act 1986, to commence, continue or defend proceedings involving 91 278 limited companies. The number of such proceedings actually taken to court is a matter for the liquidators, but such proceedings are, of course, taken for the benefit of creditors.

§ Mr. Gunnell
I thank the Minister for that and other replies that he has given me on the subject. Given that we know that the costs of Touche Ross in the liquidation now amount to about £100 million, what measures are the Department taking to ensure that there is value for money in that receivership? What plans are there for an audit of the accounts? Should the accounts go to the National Audit Office for consideration? Is the Department also conducting a social audit of the affairs of the receivership, so that we can be sure that at the end of it—for both creditors and those companies that have had dealings with BCCI—the maximum number of jobs are saved out of a debacle that is clearly in some way a responsibility of the Government?

§ Mr. Hamilton
It would be impossible for the Secretary of State to do what the hon. Gentleman has asked, because there are no powers to do so under current legislation. The costs and expenses of a liquidation are considered by a sub-committee of an informal creditors committee and are then submitted to the High Court for approval. As the hon. Gentleman will be aware, a meeting will be held on 27 May at Wembley stadium, where the creditors of the company can come forward and at which we hope that a liquidation committee of creditors will be elected. That committee will then have the responsibility for the scrutiny of the costs and expenses of the liquidators.

§ Mr. Bell
What is the Minister is going to do between now and the creditors' meeting? The President of the Board of Trade appointed the auditors. There may have been 91 cases taken to court but 10 companies were placed in liquidation by the BCCI liquidators. How can the Government consistently shuffle off their responsibility in the matter? How many reports have been called for by the Minister? How many meetings have there been? If £108 million has been received by the auditors, is not it time that the liquidation was taken by the scruff of the neck by the Department of Trade and Industry instead of waiting for 27 May?

§ Mr. Hamilton
As the hon. Gentleman will know, we have powers under section 172 of the Insolvency Act to dismiss the liquidators. An application to do that has been presented recently by the hon. Member for Leicester, East (Mr. Vaz). Of course, consideration will be given to that. The hon. Member for Middlesbrough (Mr. Bell) has as much power as the Department of Trade and Industry to do what he is urging us to do. I repeat what I said to the hon. Member for Morley and Leeds, South (Mr. Gunnell): we have no legal powers to do the things that he asks us to do.