CITY AND SUBURBAN
Reporting to the DPP's pending tray does no justice at Guinness
CHRISTOPHER FILD ES
The Government has changed tactics on the Guinness inquiry. When it was first ordered, ministers were talking in terms of publishing an interim report from the inspectors, as soon as possible: Now Michael Howard of the Department of Trade and Industry says that this would not be in the public interest: 'It is rather like asking a policeman to give an interim report in the middle of his inquiries.' Is it Indeed? The trouble with these DTI in- quiries is that they raise questions and can then leave them unanswered for year after Year. If the report suggests that the law may have been broken, it goes across to the Director of Public Prosecutions, where It joins 15 files from Lloyd's of London in the dusty heap on his pending tray. Pub- lishing the report might prejudice the trial of a case, if he decides to bring one. No news from the inspectors is bad news for directors and institutional shareholders, at Guinness, at Morgan Grenfell, possibly at Henry Ansbacher and elsewhere, waiting to decide how they should act. It would be Sensible and natural for them to let the inspectors give them their cue — but they now risk being left on stage, open- mouthed, till the theatre cat comes in at four in the morning. What certainly will not suffice is to blame Roger Seelig, the Morgan Grenfell takeover-specialist so sanctimoniously pushed out of doors. It is Silly to pretend that what has happened Was just some private ploy of Mr Seelig. He Was responsible to his seniors at Morgan, and Morgan in turn was responsible to its Principal. The inquiry is into the principal. It was prompted by evidence which, on its face, suggested misconduct of Guinness's affairs by Guinness's officers. Misconduct, to such a context, implies something more serious and more specific than mere corner-cutting. The evidence appears to have come, by courtesy of the Securities and Exchange Commission, from New York. You would scarcely look there for detailed information about the operations of City merchant banks, but it is the prime source of information about the operations Of !van Boesky. Such are the inferences Which must guide the directors and share- holders towards decisions which they can- not defer for much longer. They must disagree with Mr Howard: it would clearly ,oe in the public interest, and in the interests of justice, for the inspectors to rePort.
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