This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.theguardian.com/business/2016/jul/27/bhs-frank-field-calls-on-sfo-to-launch-formal-inquiry-into-demise-philip-green-dominic-chappell

The article has changed 3 times. There is an RSS feed of changes available.

Version 0 Version 1
BHS: Frank Field calls on SFO to launch formal inquiry into demise BHS: Frank Field calls on SFO to launch formal inquiry into demise
(35 minutes later)
The co-author of a parliamentary report into the demise of BHS has called on the Serious Fraud Office to launch a formal inquiry into the actions of the department store chain’s former owners.The co-author of a parliamentary report into the demise of BHS has called on the Serious Fraud Office to launch a formal inquiry into the actions of the department store chain’s former owners.
Frank Field MP, the chair of the work and pensions committee, has written to the head of the SFO asking the organisation to initiate an inquiry into whether Sir Philip Green or Dominic Chappell had broken the law. Related: Iain Wright: the MP leading the fight against BHS and Sports Direct
MP Frank Field, the chair of the work and pensions committee, has written to the head of the SFO asking the organisation to initiate an inquiry into whether Sir Philip Green or Dominic Chappell had broken the law.
His letter comes after a joint report published on Monday by Field’s committee and the business innovation and skills select committee concluded that Green had “systematically extracted hundreds of millions of pounds from BHS”.His letter comes after a joint report published on Monday by Field’s committee and the business innovation and skills select committee concluded that Green had “systematically extracted hundreds of millions of pounds from BHS”.
All remaining BHS stores are expected to close by the end of August with the loss of 11,000 jobs after the business went into administration in April, 13 months after Green sold it to the former bankrupt Chappell for £1. The retirement savings of 22,000 current and former workers have also been hit as the firm’s pension fund was left with a deficit of £571m.All remaining BHS stores are expected to close by the end of August with the loss of 11,000 jobs after the business went into administration in April, 13 months after Green sold it to the former bankrupt Chappell for £1. The retirement savings of 22,000 current and former workers have also been hit as the firm’s pension fund was left with a deficit of £571m.
Related: Regulator must chase Philip Green for BHS pension cash
In his letter to the SFO’s director, David Green, Field wrote that “in the light of the extraordinary evidence” received by both committees, the investigatory body should examine whether money was “moved in such a way as to attempt to mislead people into believing Mr Chappell was a credible buyer for BHS”.In his letter to the SFO’s director, David Green, Field wrote that “in the light of the extraordinary evidence” received by both committees, the investigatory body should examine whether money was “moved in such a way as to attempt to mislead people into believing Mr Chappell was a credible buyer for BHS”.
The SFO has previously confirmed receipt of material relating to BHS which it is reviewing. It has not yet decided whether to launch a formal investigation.The SFO has previously confirmed receipt of material relating to BHS which it is reviewing. It has not yet decided whether to launch a formal investigation.
A SFO spokesperson said: “If the director considers there are reasonable grounds to suspect serious or complex fraud which meets his criteria he will open a criminal investigation.” A SFO spokesperson said: “If the director considers there are reasonable grounds to suspect serious or complex fraud which meets his criteria, he will open a criminal investigation.”
The SFO is a specialist prosecuting authority that only tackles the top level of serious or complex fraud, bribery and corruption. When deciding whether to launch an inquiry it considers whether any apparent criminal action “undermines UK PLC commercial or financial interests in general and in the City of London in particular”. The SFO is a specialist prosecuting authority that only tackles the top level of serious or complex fraud, bribery and corruption. When deciding whether to launch an inquiry, it considers whether any apparent criminal action “undermines UK PLC commercial or financial interests in general and in the City of London in particular”.
In weighing whether to launch a formal investigation, it will also consider whether there is a public interest dimension and whether economic harm might have been caused. In weighing up whether to launch a formal investigation, it will also consider whether there is a public interest dimension and whether economic harm might be caused.
MPs found that Chappell’s Retail Acquisitions had failed a number of tests set by Green’s retail business to determine his credibility. Nonetheless, Green arranged £25m in financial assistance for Retail Acquisitions to help smooth through the deal. MPs found that Chappell’s Retail Acquisitions failed a number of tests set by Green’s retail business to determine his credibility. Nonetheless, Green arranged £25m in financial assistance for Retail Acquisitions to help smooth through the deal.
He also helped Retail Acquisitions with a £10m contribution linked to a property deal, according to the parliamentary report. MPs concluded: “Sir Philip attempted to make good Retail Acquisitions’ financial inadequacies to facilitate the sale. He was both sides of the deal.”He also helped Retail Acquisitions with a £10m contribution linked to a property deal, according to the parliamentary report. MPs concluded: “Sir Philip attempted to make good Retail Acquisitions’ financial inadequacies to facilitate the sale. He was both sides of the deal.”
Field told the Guardian that it was not clear why Green had gone to such lengths to assist Chappell. He said the SFO should carry out a thorough investigation to reassure the public that “no stone had been left unturned and nothing improper found” in relation to BHS.Field told the Guardian that it was not clear why Green had gone to such lengths to assist Chappell. He said the SFO should carry out a thorough investigation to reassure the public that “no stone had been left unturned and nothing improper found” in relation to BHS.
Green declined to comment on Field’s letter, but has previously said he believed the MPs’ report was the “predetermined and inaccurate output of a biased and unfair process”.Green declined to comment on Field’s letter, but has previously said he believed the MPs’ report was the “predetermined and inaccurate output of a biased and unfair process”.
Chappell told the Guardian: “I’m sure if the SFO had concerns they would be looking into it. I am totally of the belief that everything we did was accurate and correct.”Chappell told the Guardian: “I’m sure if the SFO had concerns they would be looking into it. I am totally of the belief that everything we did was accurate and correct.”
The former BHS boss said he was meeting his lawyers and planned a full response to MPs’ report, but that it might take “a few weeks.” The former BHS boss said he was meeting his lawyers and planned a full response to the MPs’ report, but that it might take “a few weeks.”
Field’s letter comes after Green threatened legal action against him over his comments to BBC Radio 4’s Today programme that the retail tycoon was the principal character in the collapse of BHS and “worse than Robert Maxwell”.Field’s letter comes after Green threatened legal action against him over his comments to BBC Radio 4’s Today programme that the retail tycoon was the principal character in the collapse of BHS and “worse than Robert Maxwell”.
Green’s legal representatives say the MP’s statements, which refer to the former publisher of the Daily Mirror who had plundered the company’s pension fund, are defamatory and false.Green’s legal representatives say the MP’s statements, which refer to the former publisher of the Daily Mirror who had plundered the company’s pension fund, are defamatory and false.
Green is also threatening legal action against Chappell and the other members of Retail Acquisitions. The billionaire, who controls a string of high street chains including Topshop and Dorothy Perkins, alleges that Retail Acquisitions misused BHS funds and that Chappell falsely represented his business credentials.Green is also threatening legal action against Chappell and the other members of Retail Acquisitions. The billionaire, who controls a string of high street chains including Topshop and Dorothy Perkins, alleges that Retail Acquisitions misused BHS funds and that Chappell falsely represented his business credentials.
The report by MPs has fuelled calls for Green to be stripped of his knighthood. It found the former owner of the chain had “systematically extracted hundreds of millions of pounds from BHS, paying very little tax and fantastically enriching himself and his family, leaving the company and its pension fund weakened to the point of the inevitable collapse of both”.The report by MPs has fuelled calls for Green to be stripped of his knighthood. It found the former owner of the chain had “systematically extracted hundreds of millions of pounds from BHS, paying very little tax and fantastically enriching himself and his family, leaving the company and its pension fund weakened to the point of the inevitable collapse of both”.