For Immediate Media Release 6th February 2010
AS More evidence emerges at Isle of Man inquiry:
landsbanki depositors’ action group accuses States
of Guernsey of continued suppression of true facts
Island Deputies were this weekend presented with further evidence of blatant secrecy and cover-up surrounding the true facts connected to the collapse of Landsbanki Guernsey.
The following points were made in a letter from the LGDAG, sent to all Guernsey Deputies over the weekend of 6th/7th February 2010:
· That the LGDAG had received a reply from the Tynwald – the Isle of Man Parliament - confirming that an inquiry was being carried out by their local Select Committee.
· That its Select Committee is mandated to investigate the collapse of Kaupthing Singer & Friedlander as well as the IOM’s local regulatory body: the FSC – the IOM equivalent of the GFSC – and the credibility of the Depositors’ Compensation Scheme.
· Strong parallels can be drawn between KSF IOM and Landsbanki Guernsey; for example dealings with HM Treasury and the UK’s Financial Services Authority. Why is the IOM so transparent and Guernsey so secretive? Guernsey like the Isle of Man became ‘’collateral damage” for the UK Ministry of Justice, UK Treasury and Financial Services Authority, all of whom should have been acting in the Island’s best interests and alongside their own, but did not.
· Why is Guernsey so reluctant initiate such an inquiry given all the evidence that has been submitted?
· The States of Guernsey claim that the ‘Promontory Report’, conducted and paid for under the GFSC’s terms of reference, is sufficient. The true facts: the Promontory Report is not a public report It was controlled, was limited in remit and thus the final outcome was predetermined in favour of the GFSC. The GFSC continues to stonewall the LGDAG and failed in its due diligence regarding the up-streaming of funds to Landsbanki Guernsey’s sister bank, Heritable.
· Confidential letters, passed between the GFSC and the FSA early in January 2009 (following the Promontory report), clearly show the complete reliance of the GFSC on information provided by the FSA; that such information was apparently ambiguous to say the least and how the GFSC apparently unquestiongly acted upon it without carrying out its own careful due diligence.
· The Chief Minister allegedly received assurance from UK Treasury that all creditors would be treated equally. The LGDAG has seen no proof of this.
· The Isle of Man’s Tynwald appears transparent compared with the opaque, secretive nature of Guernsey’s Government.
The LGDAG calls upon the States of Guernsey for an immediate public inquiry.
In addition to its own inquiry, the Isle of Man has chosen to support creditors fiscally. The LGDAG and the Joint Administrators of Landsbanki Guernsey have suggested to the Chief Minister methods that potentially have zero cost to Guernsey’s Treasury. To date these initiatives have been ignored.
Local Guernsey taxpayer Gary Blanchford, Deputy Chairman of the LGDAG said, ‘The Tynwald appears open and transparent against Guernsey’s opaque and secretive stance’. In his letter on behalf of the LGDAG, he goes on to state: “The quicker Guernsey sets up its own Public Select Committee-type inquiry, the sooner it will appear honest and transparent.”
For interviews and comment from LGDAG, please contact Neil Dickens at LGDAGmedia@yahoo.com
1) Link to Confidential letters between GFSC & FSA Jan 2009:
2) Link to report on first appearance of Alan Ball at Tynwald Select Committee (report: 30th Jan 2010): http://www.manxherald.com/business/623.html
Notes to Editors:
The Landsbanki Guernsey Depositors Action Group (Landsbanki Guernsey: Action for Depositors) consists of a Bailiwick of Guernsey section affected by the collapse of the bank, a Jersey group, and a group of depositors, nearly all British (94%), from around the globe. All of whom, including some 600 local people still fight for the return of 32 ½ % of their savings.