§ Matthew TaylorTo ask the Chancellor of the Exchequer when the Government received advice from legal counsel regarding the eligibility of Arthur Andersen for Government contracts; and if he will make a statement. [32606]
§ Dr. John ReidI have been asked to reply.
In February 1997, prior to the general election, the Treasury Solicitor was asked to review the on-going action against Arthur Andersen. Following the report of this review, the Government received advice from counsel on 9 June 1997 on the question of whether, in the context of the action to determine if the case should be heard in New York, it would be beneficial to relax the embargo against Arthur Andersen for Government contracts. The embargo was relaxed on 24 June 1997, and was fully lifted when the final settlement was agreed on 12 November 1997.