Enterprise Minister rejects Treasury Report criticism
Thursday, 18 February 2010Enterprise Minister Arlene Foster has rejected criticism contained in the HM Treasury Report on the Presbyterian Mutual Society (PMS), saying it is inaccurate and short on detail.
She said: “I was justifiably angry and disappointed when I read the report. It is very short on detail, short on evidence gathering, short on witnesses and it is short on very simple facts.
“It was quite clear that this has been an attempt to apportion blame rather than find a solution.”
The Minister added: “It is not the role of the Registry to comment on the business performance or decisions of a corporate entity. As an aside, the information contained in the PMS financial statements, which are filed on an annual basis in an abridged form, and which are accompanied by a Directors’ Report and Auditor’s Report, did not disclose that the PMS was accepting deposits in the form of loans nor did they disclose the propose for which loans were being advanced to members.
“The Department of Trade and Investment had no reason to question the validity of the accounts, which were unqualified for audit purposes. For the Treasury Select Committee to suggest DETI had access to all the relevant information to form a view on whether PMS was accepting deposits is beyond belief and untrue.
“If the Directors who are responsible for the day to day operations of the PMS and who have access to all the relevant financial information, including the detailed loan book, were unable to spot that the PMS was conducting unregulated activities, how could DETI officials, who had access only to what is filed, which represents a fraction of the management information available to the Directors, be expected to reach a view?
“This is nonsense and a cynical attempt to apportion blame where it does not belong.”
“DETI cannot be expected to assume oversight and stewardship responsibilities for the many thousands of sets of corporate accounts that are filed annually in Companies Registry.”
Arlene Foster said when she was approached by directors of the Society in November 2008, she had acted promptly to facilitate the appointment of an Administrator.
She said: “I acted quickly and made an order under Insolvency legislation to give the Society the option of going into administration or a voluntary arrangement. The procedure provides an opportunity for an Administrator to manage a company’s affairs with a view to safeguarding its assets and funds and preserving the interests of its members. The alternative would have been the fire sale of PMS assets and at a time when the property market was depressed.
“I remain committed to finding an acceptable solution as a member of the Ministerial Working Group. The First Minister and deputy First Minister are also committed to finding a solution and met on 12th February with the Prime Minister to help find a solution to this problem.
“Since the collapse of the PMS I have been in contact on a regular basis with a number of PMS savers. This has helped to ensure members that PMS members are aware of the latest developments in finding a positive outcome to the problems they are facing.”
Notes to Editors:
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