Duff & Phelps cleared of conflict of interest over advice to Rangers, Craig Whyte

[ian1964 10,486]

Thursday 23 May 2013

 

 

 

The administrators of the oldco Rangers have been cleared of misconduct and a conflict of interest over their involvement in the club.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Duff & Phelps complied with relevant guidance and legislation and there was no prima facie case of misconduct against joint administrators David Whitehouse and Paul Clark, the Insolvency Practitioners Association (IPA) has ruled.

 

The IPA received complaints that Duff & Phelps broke the organisation's code of ethics as David Grier, a corporate finance partner at Duff & Phelps, gave financial advice to Craig Whyte during and after his takeover of Rangers.

 

 

 

 

 

 

 

Mr Whitehouse and Mr Clark were appointed as joint administrators in February last year and eventually facilitated a sale to Charles Green's consortium for £5.5 million.

 

IPA investigators examined information from Mr Clark and Mr Whitehouse along with several case files. A letter sent to those who had raised complaints said Mr Clark and Mr Whitehouse had not acted inappropriately when accepting the appointment.

 

The letter added: "At worst it was considered that Messrs Clark and Whitehouse failed to fully consider and manage the public perception of a conflict of interest."

 

The letter also confirms the IPA looked into other aspects of the insolvency process including a £500,000 fee quotation given by Duff & Phelps to Mr Whyte prior to the oldco going into administration.

 

A recent update from Duff & Phelps suggested its fees would be around £2.7m.

 

The IPA in its letter said the original quotation was provided on a different basis to the actual work carried out. Mr Clark and Mr Whitehouse also faced criticism over decisions they took during the administration such as making players agree to short-term wage cuts and conducting much of the sale process in the media.

 

The IPA's code of ethics says an insolvency practitioner has to comply with principles of integrity, objectivity, professional competence and due care, confidentiality, and professional behaviour.

 

http://www.heraldscotland.com/news/home-news/duff-phelps-are-cleared.21156971

[the gunslinger 3,366]

perhaps it was the expected outcome but it seems very spurious given what we know.

 

maybe the police and bdo will see it differently.

[Darthter 542]

perhaps it was the expected outcome but it seems very spurious given what we know.

 

maybe the police and bdo will see it differently.

 

Are you saying then that the Insolvency Practitioners Association (IPA) are not up to their job??? Or is it another branch to the conspiracy tree???

[the gunslinger 3,366]

Are you saying then that the Insolvency Practitioners Association (IPA) are not up to their job??? Or is it another branch to the conspiracy tree???

 

 

they work on info provided by d@p and no one else. they are there to watch over their own.

 

we will see what others come up with but in truth we have seen what d@p were up to in black and whyte. escaping punishment wont change that.

[stewarty 1,881]

Certainly very interesting.

 

Wonder if Mark Daly will make a comment?

[Bluedell 5,367]

they work on info provided by d@p and no one else. they are there to watch over their own.

 

That's not the way these things work.

[Thinker 887]

perhaps it was the expected outcome but it seems very spurious given what we know.

 

maybe the police and bdo will see it differently.

 

The IPA must know that BDO and the police are also looking into this - in which case they can't gloss over it.

 

Surely the IPA would have to declare it if they thought there was anything untoward going on - Otherwise they're just setting themselves up for the embarrassment of looking incompetent or corrupt when the other parties find out too and publish their reports. I honestly can't see why they'd be motivated to try and cover anything up.

[Bluedell 5,367]

The IPA must know that BDO and the police are also looking into this - in which case they can't gloss over it.

 

Surely the IPA would have to declare it if they thought there was anything untoward going on - Otherwise they're just setting themselves up for the embarrassment of looking incompetent or corrupt when the other parties find out too and publish their reports. I honestly can't see why they'd be motivated to try and cover anything up.

 

Yeah, they are not going to risk their professional credibility by getting involved in a cover-up.

[the gunslinger 3,366]

regardless we have all seen what went on and we all know what a conflict of interest is.

[Darthter 542]

regardless we have all seen what went on and we all know what a conflict of interest is.

 

for the most part....we all "know" what the media reported....