SENT TO THE EDITOR OF THE GUERNSEY PRESS 9TH FEB 2010
A PREAMBLE FOLLOWED BY THE LETTER SENT TO ALL GUERNSEY DEPUTIES 6/7TH FEB 2010
The Landsbanki Guernsey Depositors Action Group for some time now have been asking the States of Guernsey to instigate a Public Inquiry into the lead up to the putting into Administration of landsbanki Guernsey on the 7th October 2008. They have refused both the inquiry and failed to answer any questions posed to them.
The Isle of Man, who are in almost exactly the same position as Guernsey with regard to Kaupthing, Singer & Friedlander, have decided that it was in the public interest to instigate such an inquiry and commissioned a Select Committee in late January 2010 and that inquiry is already producing interesting results. Its mandate was:
That Tynwald appoints a Committee of three Members with powers to take written and oral evidence pursuant to sections 3 and 4 of the Tynwald Proceedings Act 1876, as amended, to investigate and report on -
(1) the cause of the collapse of Kaupthing Singer and Friedlander (IOM) Limited;
(2) the role of the Financial Supervision Commission in ensuring the proper management of Kaupthing Singer and
Friedlander (IOM) Limited to protect depositors’ funds;
3) the credibility of the Depositors’ Compensation Scheme; and
(4) any other relevant matter
and report back by the March 2010 sitting of this Honourable Court.
Now for Kaupthing, Singer & Friedlander you can read a parallel into Landsbanki Guernsey and with that in mind we wrote to all Deputies over the weekend 6/7th February 2010, as below. To date only three have had the decency to respond and they wonder why the public has little faith in its Government.
6th February 2010,
I would ask you to consider the reply I have just had from an enquiry I made with the Isle of Man Tynwald regarding their Select Committee, especially the current inquiry by them into Kaupthing Singer & Friedlander, their Financial Services Commission and the credibility of their Depositor Compensation scheme. The evidence given by Alan Bell their Treasury Minister in the last week has highlighted the very close parallels to be drawn with Guernsey’s situation over Landsbanki Guernsey and the relationships that existed with The UK Treasury and UK Financial Services Authority. This is just another piece of evidence to add to the rest produced by the Landsbanki Guernsey Depositors Action Group to the Chief Minister & Policy Council, which asks the question as to why Guernsey has not yet instigated a public inquiry along the same lines. The Tynwald appears open and transparent against Guernsey’s opaque and secretive stance.
You will all be aware of the Chief Minister’s & Policy Council reply to our letter and the seventeen pages of proof we laid before them, which in itself was enough to demand an open Public inquiry, similar to a Select Committee inquiry. (A copy of that reply is attached to this email). The Promontory report was not a public report. It was instigated by the GFSC, under their terms of reference and paid for by them. No independent cross–examinations to establish the truth, all controlled with the final outcome to suit the GFSC, not acceptable.
You will also be aware of the confidential letters that passed between the GFSC and the FSA early in January 2009 (after the Promontory report) and had to be submitted to the UK Treasury Select Committee. These clearly showed the total reliance of the GFSC on information coming from the FSA and how that information was ambiguous to say the least and how the GFSC acted on it without apparently carrying out their own due diligence. The evidence was all out there for an allegedly professional body to see. The link to the letters is below.
Guernsey, like the Isle of Man, was “collateral damage” to the UK Ministry of Justice, UK Treasury and the FSA, who should have been acting in our best interests alongside their own, but didn’t. Guernsey's Chief Minister, it would appear, failed to pick up on this during his confidential meetings and telephone calls with UK Treasury, as did the GFSC in their confidential dealings with the FSA and in not doing so totally failed, not only the people of Guernsey, but also the Landsbanki Guernsey Depositors.
The quicker Guernsey sets up its own Public Select Committee type inquiry, the quicker it will appear Honest & Transparent. There is a lot to be learned from this whole sorry affair and, not least of all, you owe it to the 1600 Landsbanki Guernsey Depositors, 600 of whom were local taxpayers.
Deputy Chairman LGDAG, Guernsey Branch.
For and on behalf of the LGDAG
1) Link to Confidential letters between GFSC & FSA Jan 2009:
2) Link to report on first appearance Alan Ball at Tynwald Select Committee(report 30th Jan 2010) :