Dave Whelan - My letter to Gordon Brown

Posted 19/03/2009 - 11:28 by tonycBrisbaneOz

Rt Hon Gordon Brown, MP
Prime Minister of the United Kingdom
10 Downing Street,
United Kingdom.

19th March 2009.

I am writing to complain in the strongest possible terms about the outrageous behaviour of HM treasury with regard to depositors in Kaupthing Singer and Friedlander. Once again HM treasury and the Minister responsible, Mr Darling, have displayed their utter contempt for depositors in the collapsed bank KSF Isle of Man, which was caused by the seizure of KSF UK on the 8th of October. The Treasury, not content with taking the life savings of depositors in KSFIOM is now breaking its own rules. I read in Crain's Manchester Business (1) and The Observer (2) that a Mr David Whelan is to have returned to him (as a result of the personal intervention by Mr Darling) approximately 50 million pounds which he had deposited in Kaupthing Singer and Friedlander, rubbing our collective faces in it. If less than 100% of depositors' funds are realised when KSF is wound up this will effectively transfer some money that may belong to other creditors to Mr Whelan. Mr Darling recently called for government to show some humility (3) but clearly he doesn't know the meaning of the word.

This early payment makes a mockery of Paul Myners assertion, in a recent letter to depositors, that under UK insolvency law all creditors are treated equally. This is clearly not the case when very wealthy and influential depositors in KSF can be rescued at the whim the Chancellor who obviously thinks he is above the law. As HM treasury has now set a precedent I demand Mr Darling and the HM treasury return the money frozen by Statutory Instrument 2674 in full to its rightful owners as Mr Whelan's money will be on or before the 24th of March, as it is obviously within their power to do so.

No doubt the government will claim that it is saving and/or creating thousands of jobs, a laudable aim but what about the lively hood of depositors who are not just isolated economic units? I expect many depositors in KSF IOM, like me, have had to cut back their spending quite drastically. Surely this costs jobs at a time when governments around the world are desperate for people to spend their money. Charities, hospitals and local governments that have also been affected by the seizure of KSF are employers as well. What about the jobs of people who work for those organisations? At the recent G20 conference a communiqué was issued stating governments, including the UK government, were prepared to do whatever it takes to get the world's economy moving again. My response is: really? (in a sceptical tone).

I have yet to receive any explanation from the Department of Justice as to how Statutory Instrument 2674 and the UK human rights act 1998 (part II, First Protocol, Article 1, protection of property), are consistent with each other.
Sir, you are the Prime Minister and First Lord of the Treasury and the buck stops with you. I demand an explanation as to why Mr Whelan has suddenly been ushered to the front of the queue (and through the doors so to speak), on a ministerial whim, breaking the rules that the rest of us are told, by another official, Paul Myners, that we have to abide by.

During your interview on the BBC Politics Show on the 23rd of November 2008 you are quoted as saying "these are extraordinary times and they need extraordinary actions....... we don't want British savers being pushed from pillar to post and that the government's job is to look after them". Well, many British savers have had their life savings seized (me included), some have been pushed into destitution and I can't help wondering when some one will be pushed into suicide.

You stated in Prime Ministers Question time on the 10th of December that “not one depositor actually lost any money in Britain”. This is not true, the savers with deposits in KSFIOM have lost money in Britain. Many like me are Britons, funds that belong to us have been seized by the UK government in the UK. Some of those funds belong to Mr Whelan, a resident of Wigan.

In your press conference at No 10 on the 18th of February you are quoted as saying “we need a regulatory transformation so that people can feel that their savings and their deposits are safe. ......... That is why we are saying in this document(5) that changes that we make will have to apply to all jurisdictions round the world” When and where do you intend to start? I would suggest in your own backyard, British Crown Dependencies.

Finally, on the Labour Party's donation web page (4) it says “Help us campaign for a fairer Britain. No matter how large or small the contribution, every penny will make a difference.” Only fairer for a very select minority it would seem.

Yours faithfully,


1) http://www.crainsmanchesterbusiness.co.uk/apps/pbcs.dll/article?AID=/200...
2) http://www.guardian.co.uk/business/2009/mar/15/jjb-sports-treasury
3) http://uk.news.yahoo.com/21/20090303/tuk-darling-we-must-show-some-humil...
4) https://secure2.labour.org.uk/donate/
5) “The Road to the London Summit”

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