Barings staff face fresh inquiry

Singapore fall-out: Fraud investigators respond swiftly to allegations of a high-level bank cover-up

Singapore fraud investigators moved swiftly yesterday to interview James Bax and Simon Jones as part of a wide-ranging response into the collapse of Barings. Their action could involve criminal prosecution of local Barings executives and applications for extradition of some of the London staff. No charges have been laid against anyone but Nick Leeson, the trader accused of bringing down the bank.

The interviews came barely 24 hours after a damning 183-page report from the Singapore authorities, which said there had been a deliberate cover- up by some Barings executives of an accounting warning sign that could have saved the bank. Mr Bax, the boss of Nick Leeson and Peter Norris, Barings' former chief executive, were also accused of lying to investigators.

Sources close to the investigation said yesterday that a farewell party planned for Mr Bax on Tuesday was abruptly cancelled and that his weekend departure from Singpore was thrown into doubt.

Travel restrictions had been placed on both Mr Bax and on Mr Jones, chief operating officer for Barings South Asia, who are both still based in Singapore. Mr Bax was due to travel only after posting an pounds 11,360 bond.

Lawrence Ang, the director of the Commercial Affairs Department - responsible for fraud investigation - yesterday refused to name those who may face criminal proceedings. The department said its investigations had produced additional charges against Nick Leeson, but these would not be added to the 11 on which he will stand trial in Singapore should his extradition from Germany be successful.

The existing charges fall into three categories of forgery, "certain price adjustments" and deceiving the Singapore International Monetary Exchange. These offences carry a maximum penalty of 14 years imprisonment.

Asked whether the Singaporean authorities would accept an offer of co- operation from Mr Leeson, Mr Ang replied: "Yes, why not?" He was hesitant in saying whether such an offer had already been made but ultimately said that it had not.

Stephen Pollard, Mr Leeson's lawyer, said his client was likely to get a fairer trial in Singapore in the light of the new report. "The inspectors have focused on the extent to which the bank could not have collapsed without the acts and omissions of the London management. To that extent they must share the responsibility with Nick Leeson for the collapse of the bank."

Mr Ang would say nothing specific about his department's interest in Mr Norris - but he made clear that if people outside Singapore were responsible, there would be no hesitation in investigating them. "If offences were committed here, then it matters not where these people are. Obviously we can pursue [them] in accordance with extradition law."

Asked whether Mr Norris could be prosecuted if it were proved that he was involved in a conspiracy to conceal unlawful trading, as suggested by the inspectors, Mr Ang replied: "If it can be established that acts of conspiracy took place in Singapore, [the department] may be able to use that as a basis to launch investigations."

Mr Norris's lawyer in London said yesterday his client would fight any attempt to have him extradited to Singapore. "I imagine that ... he would not be enthusiastic about returning voluntarily to face a court in Singapore," said Anthony Isaacs of Stephenson Harwood.

The Singapore authorities' report suggests that Barings Futures (Singapore), the company at the centre of the collapse, was trading unlawfully. If this were proved all the company's directors would be liable for criminal prosecution under the Singaporean Companies Act.

Mr Norris, Mr Bax, Mr Jones and the Singaporean directors are therefore at risk. Nothing has been said so far about possible action against Singaporean nationals.

Mr Ang added that attempts to interview "seven to ten people" in the UK came to nothing because of the "virtually impossible"demands made by potential witnesses.

He said these were: that interviews had to be informal, that lawyers had to be present, that detailed questions had to be provided in advance, that questions could not go beyond the scope of those notified, that any document referred to was to be supplied in advance, that the Commercial Affairs Department would not seek to summon or subpoena the witnesses and that the interviews were to be held under the privilege provisions of English law, in other words that their contents could not be used in any subsequent legal action.

Start your day with The Independent, sign up for daily news emails
PROMOTED VIDEO
News
i100
News
One father who couldn't get One Direction tickets for his daughters phoned in a fake bomb threat and served eight months in a federal prison
people... (and one very unlucky giraffe)
Arts and Entertainment
Sink the Pink's 2013 New Year's Eve party
musicFour of Britain's top DJs give their verdict on how to party into 2015
ebooks
ebooksA year of political gossip, levity and intrigue from the sharpest pen in Westminster
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Selby Jennings: VP/SVP Credit Quant- NY- Investment Bank

Not specified: Selby Jennings: VP/SVP Credit Quant Top tier investment bank i...

Selby Jennings: Quantitative Research | Equity | New York

Not specified: Selby Jennings: Quantitative Research | Global Equity | New Yor...

Selby Jennings: SVP Model Validation

Not specified: Selby Jennings: SVP Model Validation This top tiered investment...

Selby Jennings: Oil Operations

Highly Competitive: Selby Jennings: Our client, a leading European Oil trading...

Day In a Page

Aren’t you glad you didn’t say that? The worst wince-and-look-away quotes of the year

Aren’t you glad you didn’t say that?

The worst wince-and-look-away quotes of the year
Hollande's vanity project is on a high-speed track to the middle of nowhere

Vanity project on a high-speed track to nowhere

France’s TGV network has become mired in controversy
Sports Quiz of the Year

Sports Quiz of the Year

So, how closely were you paying attention during 2014?
Alexander Armstrong on insulting Mary Berry, his love of 'Bargain Hunt', and life as a llama farmer

Alexander Armstrong on insulting Mary Berry and his love of 'Bargain Hunt'

From Armstrong and Miller to Pointless
Sanchez helps Gunners hold on after Giroud's moment of madness

Sanchez helps Gunners hold on

Olivier Giroud's moment of madness nearly costs them
A Christmas without hope: Fears grow in Gaza that the conflict with Israel will soon reignite

Christmas without hope

Gaza fears grow that conflict with Israel will soon reignite
After 150 years, you can finally visit the grisliest museum in the country

The 'Black Museum'

After 150 years, you can finally visit Britain's grisliest museum
No ho-ho-hos with Nick Frost's badass Santa

No ho-ho-hos with Nick Frost's badass Santa

Doctor Who Christmas Special TV review
Chilly Christmas: Swimmers take festive dip for charity

Chilly Christmas

Swimmers dive into freezing British waters for charity
Veterans' hostel 'overwhelmed by kindness' for festive dinner

Homeless Veterans appeal

In 2010, Sgt Gary Jamieson stepped on an IED in Afghanistan and lost his legs and an arm. He reveals what, and who, helped him to make a remarkable recovery
Isis in Iraq: Yazidi girls killing themselves to escape rape and imprisonment by militants

'Jilan killed herself in the bathroom. She cut her wrists and hanged herself'

Yazidi girls killing themselves to escape rape and imprisonment
Ed Balls interview: 'If I think about the deficit when I'm playing the piano, it all goes wrong'

Ed Balls interview

'If I think about the deficit when I'm playing the piano, it all goes wrong'
He's behind you, dude!

US stars in UK panto

From David Hasselhoff to Jerry Hall
Grace Dent's Christmas Quiz: What are you – a festive curmudgeon or top of the tree?

Grace Dent's Christmas Quiz

What are you – a festive curmudgeon or top of the tree?
Nasa planning to build cloud cities in airships above Venus

Nasa planning to build cloud cities in airships above Venus

Planet’s surface is inhospitable to humans but 30 miles above it is almost perfect