Letter to Mr Geoffrey Robinson MP

  from the Parliamentary Commissioner for Standards

At its meeting this morning the Standards and Privileges Committee decided to defer their consideration of the allegations against you for a week so that further inquiries could be made concerning the alleged payment by Hollis Industries and the acknowledged payment by Central and Sheerwood.

HOLLIS INDUSTRIES

In your letter of today to the Chairman you said that you proposed to commission a detailed examination of the Pergamon accounts to see whether further light could be shed on the reference to £200,000 located by Arthur Andersen and quoted in their letter to you, also of today. You have since told me, however, of your concern that further inquiries, commissioned by you, may not be seen as independent and that, although you would be prepared to meet the cost, you would prefer me to initiate any inquiry.

I am therefore proposing to discuss with Mr Fishman what further inquiries might usefully be undertaken; how long they would take; and what they would cost. In the light of this, I would expect to consult the Chairman on whether to commission inquiries and at whose expense. I would, of course, keep you informed.

CENTRAL AND SHEERWOOD

The Committee have asked me to seek a further explanation of the payment of £150,000 in 1991. I should therefore be grateful if you could respond to the following questions:

(ii)  Did you have any contract of employment or any expectation that your directorship would be remunerated in 1988, 1989 and 1990?

(iii)  What were the circumstances which led to the Board's decision to make a one-off payment in 1991? Is there a minute of the Board's decision available to you which I could see?

(iv)  Was the payment made for services rendered exclusively to Central and Sheerwood or for services to a group of companies, including Hollis Industries? (The point here is whether you could have been recompensed through Central and Sheerwood for non-payment of an intended remuneration through Hollis).

Could you please let me have a response on these questions not later than 13 July.

7 July 1998