Wednesday, July 22, 2009

No independent inquiry into the collapse of the bank

July 2009.....TYNWALD has voted unanimously to set up a select committee to investigate the causes of the collapse of the Island's Kaupthing Singer & Friedlander bank.

The committee will also examine the role of the Financial Supervision Commission in ensuring the KSF (IoM) bank was properly managed to protect depositors' funds and it will also consider the credibility of the government's depositor compensation scheme.

David Cannan (Michael) who tabled the motion calling for the setting up of the committee said this was an issue of accountability and the bank's collapse had to be investigated to reassure the people of the Island and our customers that we have a sound and responsible regulatory system in place.

He said: 'There must be no perception of whitewash or cover up. The Island must have the highest standards of integrity to ensure its reputation internally and internationally.'

The motion was carried unanimously as amended by Health and Social Security Minister Eddie Teare to require the select committee to report back to Tynwald by the March 2010 sitting. Juan Watterson (Rushen), John Houghton (Douglas North) and Eddie Lowey MLC were voted in as the committee's three members.

Clearly this important inquiry is not going to be independent as it should be. Such as it is it must be undertaken in public and must call on all affected parties to give evidence, especially the Depositors' Action Group. Finally its report must be made public.

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