The Bank of England has accused Deloitte of hiding from a judgment condemning
its conduct in the BCCI case.
The Big Four firm failed to show up for a High Court hearing this week, which
considered an abortive lawsuit it brought against the Bank of England as
liquidators of the Bank of Credit and Commerce International.
The Bank of England is claiming £81m in costs and interest, racked up during
the 12-year legal battle with Deloitte. Lawyers for the Bank accused Deloitte of
‘playing its get out of jail card’ by paying a settlement figure of £73m, and
then staying away from court to avoid a judgment.
Nicholas Stadlen QC told Mr Justice Tomlinson: ‘It is seeking to skulk in the
shadows without any suggestion of apology.’
He urged the judge to hear the Bank’s application for costs, in the absence
of Deloitte’s lawyers, and hand down a written judgment exonerating the Bank and
its officials of ‘disgraceful and entirely unfounded’ allegations that they
dishonestly failed to regulate BCCI’s fraudulent activities.
Stadlen said the liquidators’ stated reason for not appearing in court was
that, as the lawsuit was withdrawn last November, they could not spend any more
money pursuing the case on behalf of BCCI’s creditors.
But he said this ‘plea of poverty’ rang hollow in the light of the £184m fees
received by Deloitte during the entire BCCI liquidation, and a reported £56m
received in the 12-year litigation against the Bank.
Deloitte refused to comment on the case. The hearing concluded, with judges
reserving their decision.
The second largest improvement in ‘significant’ levels of financial distress since the EU Referendum was in professional services, found research from Begbies Traynor
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies