Government slammed for it's 'shameful' handing of Equitable Life scandal
as ombudsman says victims 'have been ignored'
By Simon Duke
Last updated at 1:24 AM on 06th May 2009
LibDem Treasury spokesman Vince Cable says the Government has been
ducking its responsibility
The Government has come under savage attack from the Parliamentary
Ombudsman over its 'shameful' handling of the Equitable Life scandal.
In a scathing report this morning, Ann Abraham condemns the 'deeply
disappointing' treatment of Equitable Life victims.
Hundreds of thousands of Equitable Life customers have seen their
pensions wiped away after the group almost went bust in 2000.
Despite repeated calls, the government has yet to set out a clear
timetable for compensating victims, many of whose retirement plans have
been thrown into disarray.
Ombudsman Ann Abraham last July called on the government to compensate
all victims of Equitable Life's demise.
Although the government has acknowledged some regulatory failures, only
policyholders who suffered 'disproportionately
compensation.
In this morning's latest report for MPs, Mrs Abraham said: 'The
Government's response to my report was deeply disappointing.
'It provided insufficient support for the rejection of my findings of
maladministration and injustice.
'It also begged a rather larger question as to what the purpose of
regulation was supposed to be.'
Mrs Abraham had uncovered ten separate failures of oversight by
regulators and Whitehall officials in the period leading up to the
pension group's demise.
But the Government rejected all or part of five of her findings of
'maladministration'
Instead, it turned to a former Appeal Court judge, Sir John Chadwick,
for advice on compensating only policyholders who had been
'disproportionately affected'.
Over 30,00 Equitable Life victims have already died while waiting for
justice - and many more will pass away before they will receive redress.
Mrs Abraham said: 'It is clear that not everyone who has suffered
injustice will be eligible for a payment and that not all of the
injustice suffered will be put right.
'The injustice I identified in my report will not therefore be remedied
as a result of the Government's response.'
Mark Hoban, the Shadow Financial Secretary to the Treasury, said: 'The
Government are failing Equitable’s policyholders and they should be
ashamed of their actions.
'Ann Abraham rightly criticises the lack of a clear timetable for
payments to be made to policyholders.
Vince Cable, Treasury spokesman for the Liberal Democrats, said: 'The
Government has used every cynical trick in the book to duck its
responsibilities to Equitable Life policyholders.
'30,000 people have already died waiting for a just resolution to the
Equitable Life saga. Policy-holders should not have to wait any longer.
'The Government must accept the recommendations of the Ombudsman on
compensating those who have suffered loss.'
Http://www.dailymai
shameful-handing-
ignored.html
Wednesday, 6 May 2009
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