Guardian article #7 reporting Mohamed Al Fayed's lies over Harrods

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Article No. 7

'The Fayeds should leave the country'

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Index to Guardian articles on the Fayeds' purchase of Harrods

The Guardian
Thursday, 8 March 1990

'The Fayeds should leave the country'

The Lonrho reaction

Dan Atkinson

LONRHO, the international trading giant, is planning a full-scale legal offensive in the wake of the report.
    Chairman, Sir Edward du Cann, said "substantial damages" would be sought through the courts and that a private criminal prosecution could not be ruled out.
    Lonrho would also call for a Commons inquiry into the affair and demand changes in company law to prevent another Fayed-type affair "in our lifetimes". He added: "Personally, I think the Fayeds should be forced to leave the country." They should certainly be forced to divest themselves of the House of Fraser group.
    In a stinging attack, Sir Edward said: "This is fraud on a grand scale. How can fraudsters and liars be allowed to seize and retain what was once the largest department-store group in Europe?" Lonrho would demand:

That the Bank of England revoke the licence of the exclusive Harrods Bank;

That the Bank investigate the role of the Fayeds' merchant bankers, Kleinwort Benson, in the 1985 takeover;

That the Law Society investigate the role of the Fayeds' solicitors, Herbert Smith and Co of Cannon Street;

That the Royal Warrant be withdrawn from Harrods;

That the Fayeds be disqualified by the DTI from holding UK company directorships.

Sir Edward said Lonrho had already begun legal action against some of the parties involved in the takeover, and planned "to pursue through the courts the remedies open to us".
    Lonrho's lawyers were considering a legal offensive on the Fayeds, Kleinworts and other players in the 1985 affair, aimed at seeking substantial damages for Lonrho and its shareholders.
    No decision had been taken on whether to launch a private criminal prosecution. The Fayeds would spend the remaining years of their careers "as corporate lepers".
    Sir Edward said: "They must be forced to divest House of Fraser. The facts are before the British people and unless Government, Parliament and the City act quickly on this report, the credibility of London as a financial centre will be severely undermined."
    The Lonrho chief executive, Tiny Rowland, was not available for comment yesterday. Sir Edward said Lonrho had achieved the main objective of the campaign: publication of the report.
The Lonrho-owned Observer, which brought out a midweek edition last year leaking the report and which was promptly served with a government injunction, said the report vindicated its stance.


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