HL Deb 02 December 1993 vol 550 cc45-6WA
Lord Spens

asked Her Majesty's Government:

Whether the action of the Treasury, in advising senior civil servants that certain partners and senior employees of Touche Ross & Co, Chartered Accountants, should not be engaged in public sector work, has any basis in law; and

Whether the partners and senior employees of Touche Ross & Co, Chartered Accountants, identified by Sir Alan Hardcastle in his letter to senior civil servants have been convicted of any criminal offences or disciplined by the Institute of Chartered Accountants; and

Whether there has been an inquiry into the conduct of certain partners and senior employees of Touche Ross & Co, Chartered Accountants, as a result of their involvement with Barlow Clowes; whether these individuals made representations; and whether there is any appeal from the action of the Treasury; and

Whether there are any individuals of other firms of chartered accountants on the "blacklist" and if so, whether they will place a list in the Library; and

Whether similar executive action was taken against Arthur Andersen & Co, auditors to the De Lorean companies, and, if so, when will it be ended; and

Whether they intend to take similar action against Price Waterhouse & Co and Ernst & Young, the auditors and former auditors of BCCI; and whether they intend to take similar action against other firms of auditors involved with companies where fraud has occurred.

The Parliamentary Under-Secretary of State, Department of Employment (Lord Henley)

It is not the Government's policy to comment on internal circulars, which may have been improperly leaked.

In general, the Government must have full confidence in the integrity and competence of all those with whom they do business on commercial terms, in order to protect the interests of the taxpayer. Where the Government take action against any firm whose performance of government business falls short of professional standards, it will last until the situation is satisfactorily resolved. Disciplinary procedures are matters for the employing organisations and regulatory bodies concerned.