Bunhill: Adverse accounts

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NICE to see that the latest two sets of accounts from Capcom Financial Services, the futures company associated with the collapsed Bank of Credit and Commerce International, live up to the extraordinary standards established by their predecessors. The 1988 accounts contained a 17-page qualification from accountants Arthur Andersen, who indicated they were not prepared to continue as auditors to the company.

The latest lot, for 1989 and 1990, carry on in the same grand tradition - 1990's for instance, contains a three-page qualification from the new auditors, Kingston Smith, which points out that the company has received correspondence from the Alexandria Commercial and Maritime Bank demanding payment of pounds 7m as a result of guarantees allegedly given by the company.

Capcom, as dedicated readers will remember, continues to operate on the foreign exchange spot markets, despite being barred from the Association of Futures Brokers and Dealers and having been forced to sell its seats on several exchanges in America. Meanwhile, Syed Ziauddin Ali Akbar, former head of BCCI's Treasury operation and the man who effectively controls Capcom, is in detention in France, awaiting deportation.

Mind you, he keeps in touch. The accounts show he has so far received pounds 327,018 in legal expenses from the company as well as a pounds 120,000-a-year allowance.

Unsurprisingly, Kingston Smith are unable to form an opinion on whether the financial statement gives a 'true and fair view' of the state of the company's affairs. Kingston will no doubt succeed in beating Arthur Andersen's 17-page record next year.

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