§ Mr. Marlow
To ask the Secretary of State for Trade and Industry if he will investigate the fees charged by Touche Ross with regard to the Bank of Credit and Commerce International with a view to introducing further safeguards for creditors.
§ Mr. Redwood
I set out in a reply on 20 January at column58, the means by which a liquidator's remuneration must be approved, that is by the creditors acting either through a liquidation committee or in general meeting, with recourse available to the court. In the case of BCCI, this procedure will apply to the remuneration of Touche Ross as liquidators after 14 January 1992, the date of the winding up order. The procedure provides safeguards in control by the creditors who have a financial interest and by the courts who are independent of the liquidator.
The Secretary of State does not have a role in deciding the amount of remuneration which should be paid, but has the power if necessary to audit a liquidator's accounts in order to ensure that the approved amount has been drawn.
The remuneration of Touche Ross as provisional liquidators, that is up to 14 January, must be approved by the court and I understand that their bill will shortly be lodged with the court for approval.