§ Mr. GeorgeTo ask the Chancellor of the Exchequer if he will make it his policy to give special consideration to registered charities which deposited money with the Bank of Credit and Commerce International in the compensation scheme for the bank's investors.
§ Mr. MaplesAs I said in the House on Monday 8 July,Official Report, columns 660–74, it would not be right or possible to make special arrangements within the deposit protection scheme for one group of depositors. The terms of the deposit protection scheme are set by part II of the Banking Act 1987.
§ Ms. MowlamTo ask the Chancellor of the Exchequer what consideration was given by the Bank of England when Price Waterhouse were appointed as fraud investigators at BCCI in 1987, to appointing a different company as auditors.
§ Mr. Maples[holding answer 12 July 1991]: I am advised that the Bank of England did not appoint Price Waterhouse as fraud investigators at BCCI in 1987. I understand that Price Waterhouse was appointed by BCCI itself as financial auditors for the whole group, with the encouragement of the relevant supervisors. It was this that facilitated the auditors' understanding of intra-group transactions and contributed to a fuller financial assessment of the group. This in turn facilitated the ultimate discovery of the fraud.
§ Mr. CryerTo ask the Chancellor of the Exchequer if he will introduce a scheme to provide 100 per cent.
37Wcompensation for depositors in the Bank of Credit and Commerce International with individual accounts of up to £100,000 and small businesses employing up to 200 employees; and if he will make a statement.
§ Mr. Maples[holding answer 11 July 1991]: I explained in my statement to the House on Monday 8 July, Official Report, columns 660–74, the arrangements that are in place for depositors and small businesses who had accounts with the Bank of Credit and Commerce International. There are no plans to change the present deposit protection fund arrangements.
§ Mr. CryerTo ask the Chancellor of the Exchequer when the Bank of England first received information that the Bank of Credit and Commerce International was the subject of an organised fraud; and if he will make a statement.
§ Mr. Maples[holding answer 11 July 1991]: I understand that the Bank of England received information suggesting serious irregularities in the Bank of Credit and Commerce International at the beginning of this year and shortly afterwards commissioned a report under the Banking Act 1987. This report was received about two weeks ago.