The Bank of England moved swiftly yesterday to recover nearly #75 million of legal fees it has spent over the past 12 years defending itself and 22 of its officials from allegations of 'misfeasance in public office', levelled by Deloitte acting as liquidator for the collapsed Bank of Credit and Commerce Inter national.
The Bank gave notice that it will go to court tomorrow week seeking costs on an ?indemnity? basis ? the highest scale ? to reflect the ? disgraceful? way Deloitte conducted a 12-year lawsuit that collapsed earlier yesterday.
Mervyn King, the Bank?s governor, was in the High Court to hear Deloitte abandon the case and withdraw all the allegations.
He said afters: ?There has never been a shred of evidence to support these disgraceful allegations.
?The judge himself said this morning the allegations against all 22 Bank staff were ? wholly without foundation?.
?The foolish determination to pursue a hopeless case for so long has also led to a huge waste of creditors? and taxpayers? money. The Bank will be seeking the largest possible compensation for its costs.?
Deloitte, which had claimed up to #850 million, blamed the Bank for refusing to negotiate and prolonging delays by contesting applications for documents.
BCCI was closed by the Bank in 1991 after huge frauds came to light.
Deloitte, in its role as liquidator, insisted that the Bank and its officials, acting dishonestly and in bad faith, failed in its supervisory duty by letting things get as far as they did. But the trial before Mr Justice Tomlinson in the High Court did not start until January, 2004.