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New business model?

30th Jan 2013
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At point 14 of Stephenson Harwood's letter to Grant Thornton about the SFO's Tchenguiz debacle http://ftalphaville.ft.com/files/2012/12/GT-1-Letter.pdf GT  is referred to as the "SFO's principal informant with a clear vested interest in the outcome".

From about 22 minutes in  http://www.youtube.com/watch?feature=player_detailpage&v=wS4Z_Ez1ze8 the then Minister, refers at some length to GT's conflict of interest in their role as Heritage plc's Receivers.

At point 104 a) Stephenson Harwood http://ftalphaville.ft.com/files/2012/12/GT-1-Letter.pdf refer to £137,000,000 allegedly received by GT  which allegedly GT has not yet remitted to the bank for whom they were acting.

On 26th June 2012 Lloyds Bank, when referring to a substantial shortfall of funds confirmed in Court that they did not know how much GT had actually recovered in their role as Receivers to Heritage plc.

It seems entirely possible to me that a new (or not so new?) business model for GT is something like, "ignore conflicts of interest, and hold on to all of what we recover"?

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By jefflcbba
06th Feb 2013 18:44

New business model to cost taxpayer £200,000,000?

Grant Thornton should pick up the bill !!!!!!!

 

I hope the whole profession agrees

 

http://www.telegraph.co.uk/finance/financial-crime/9853570/Vincent-Tchen...

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By The Limey
07th Feb 2013 18:21

Does anybody have links to copies of the accounts at the centre of these accusations? 

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By The Limey
07th Feb 2013 18:45

Jeff,

 

You really aren't helping your claims by having an incorrect link (www.cbba.co.uk goes nowhere). And having Google'd around, double entry has a role in preventing sales ledger errors...

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Replying to runningmate:
By jefflcbba
07th Feb 2013 19:39

Heritage plc funds still with Grant Thornton

Limey

 

Thanks for your comments:

1. cbba had a link at the time I originally introduced myself, and I have not updated that. cbba is still going, but it really does not neeed a web-site. I will take the link off.

2. Obviously I do not have access to the accounts that form the basis of Stephenson Harwood's letter.

3. For the past 4 or so years I have been trying to find out how much was recovered against the debt of Heritage plc from Lloyds Bank. Last year Lloyds barrister confirmed in Court" .......what Grant Thornton did or did not recover. That, of course, we do not know. What we know is what we have received at the bank."

4 In 1997 the Bank stated on Affidavit that there was a £1.5m shortfall against a £3m debt before the call on my Guarantee, Over the intervening years I have got documentation which demonstrates that Grant Thornton should have recovered an additional £2-3m.

5 I prepared an explanation of the timing and relevance to the call on my Guarantee in a letter to Antonio Osario of Lloyds, before the Hearing referred to in 3. As a technophobe I have no idea how to get that onto Mad Lemming-----but I will e-mail it to AccountingWeb.,

6 I believe Lloyds' Barrister, that they do not know how much Grant Thornton recovered. As they stated in an Affidavit there was a shortfall, one can only assume, Grant Thornton still have the considerable balance. Lloyds Bank stated in Court they do not know how much Grant Thornton recovered!

7 It will be much easier to comprehend once I have the explanation in 5 on this blog.

 

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By The Limey
07th Feb 2013 21:25

There is no obviously about it, they are public records from CH! If I had access this week, I'd be taking a look myself (without having to pay of course). 

 

From the letter, it does look like most of it is heading to a valuation basis argument. I'm _very_ surprised at the mention that a servicing company had collateral valued on a red book basis. Seems rather unusual to me. The reason I wanted to see the accounts was to check out the accounting policies and disclosures of material estimates. 

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By jefflcbba
08th Feb 2013 18:55

There is no obviously about

Happy to leave investigating the Stephenson Harwood letter to you.

Will explain the Heritage plc similarities, as I see them, once I can link a certain document to that explanation.

Have removed redundant link to cbba :-)

 

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