Farepak directors could be prosecuted
Last updated 11:38, Tuesday, 13 May 2008
FAREPAK directors who left hundreds of Cumbrian savers facing a bleak Christmas after they lost thousands of pounds could face legal action, the Government hinted yesterday.
Consumer Minister Gareth Thomas said the official investigation into the firm by the Companies Investigations Branch (CIB) of the Department for Business, Enterprise and Regulatory Reform has been completed.
But, as expected, it will not be published. However, what may comfort some of the savers who lost out when the Christmas saving scheme went bust in October 2006 is that the directors could face prosecution.
In a written ministerial statement, Mr Thomas said the CIB was taking independent advice on whether the evidence in its report warranted legal action.
He said: “The collapse of Farepak was dreadful for the thousands of people who lost money. We initiated a comprehensive investigation to establish the facts. We are now getting legal advice on whether there are grounds for further action.”
Workington MP Tony Cunningham said: “I said some time ago if there was evidence it should be taken to court and if people are guilty they should be jailed. I hope it does go to court. What happened was huge and devastated people’s Christmas.
“We raised £25,000 in west Cumbria and I worked closely with other ministers and we did everything we could to raise money at the time and the people responsible must be brought to justice.”
Savers are already braced to only be compensated for 5p for every £1 they saved – but there is still no time scale for any compensation to be awarded.
