Lawyer slams DETI over court moves
The Department of Enterprise Trade and Investment (DETI) has chosen the softest of targets to prosecute for the PMS crisis - and is guilty of a serious conflict of interest in doing so, it has been claimed.
Solicitor and insolvency practitioner John Gordon made the blistering attack as he prepares to defend three elderly former PMS directors from moves to have them disqualified as company directors.
The Rev David McConaghy, the Rev Sidlow Samuel McFarland and church elder Mr Albert McCormick were all directors in the PMS, which suffered a run in late 2008 and is now in administration. All three are now in their seventies with serious medical conditions.
Mr Gordon said that DETI, as far as his clients go, was choosing the softest targets among the 20 former PMS directors.
“Aside from the PMS company secretary Colin Ferguson, if they disqualify the other five directors it will be the first time that I am aware of in the UK that this has been done to non-executive directors,” he said. “These were all voluntary directors and charitable trustees who were not remunerated in any way but were giving up their time - and in some cases their lives - for their church. There is not any other precedent for this that I am aware of in the UK.
“Why were these individuals chosen from all the directors? I believe it is because they were the softest targets out of the 20.”
He said the disqualification legislation requires it to be shown that there is a public interest in the prosecution. “This process could cost well over £100,000,” he said. “The purpose of this legislation is usually to stop people who have been guilty of abuses of being in charge of companies again; people who have not bothered to keep records, paid themselves far too much and engaged in tax evasion.
“But the three gentlemen I am representing are all in their seventies with significant medical conditions. So where is the public interest in disqualifying them?
“In my view it is because the department is coming under pressure to make prosecutions and they have picked the softest targets out of the 20. We believe it is disproportionate - a sledghammer to crack a nut.
“We believe DETI also has a departmental conflict of interest in that the Treasury Select Committee report on the PMS said there had been a fatal regulatory gap for industrial and provident socities in Northern Ireland. Yet DETI has signed the public interest certificate to proceed with disqualification proceedings against my clients, without having admitted any liability for the regulatory gap. We say it is a disgrace.”
He said DETI had also taken special measures to try and win their case in that, for the first time ever, it has brought in a Treasury QC from London to fight the case against his clients.
DETI was invited to comment but has not done so at the time of going to press.
Email to a friend
Print this page
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Belfast
Tuesday 29 May 2012
Today
Sunny spells
Temperature: 12 C to 21 C
Wind Speed: 7 mph
Wind direction: South west
Tomorrow
Light showers
Temperature: 12 C to 20 C
Wind Speed: 9 mph
Wind direction: South
