Or the inevitable?
http://www.guardian.co.uk/football/2009/mar/04/david-conn-ken-bates-leeds-ownership
MP calls for inquiry into Leeds United
• Lib Dem's Phil Willis wants
government investigation
• Court case shedding light on Bates' controversial dealKPMG claim that Ken
Bates gave a
statutory declaration that 'there was no connection between Astor and
Krato with Forward Sports Fund'. Photograph: Paul Gilham/Getty Images
The
Liberal Democrat MP Phil Willis has called on the government and the
football authorities to launch an investigation into the ownership of Leeds
United
and the conduct of the club's 2007 administration by KPMG, following
declarations made by the club in Jersey court proceedings. Leeds are
suing a Jersey-based company, Admatch, for £190,400 the club say they
are owed, while Admatch's owner, Robert Weston, is arguing that he was
left with £1.43m unpaid when one of the Leeds United went bust in 2006.
The
court ordered Leeds to disclose who owns Forward Sports Fund, the
company registered in the Cayman Islands which ultimately owns Leeds,
and other offshore companies involved when the club went into
administration. These relationships were controversial at the time of
administration, because one offshore company, Astor Investment
Holdings, agreed to waive repayment of debts totalling £17.6m if Ken
Bates' and Forward's bid to buy back the club was accepted. Other,
larger bids had to include Astor and Krato as major creditors, so the
overall return to creditors was lower and Bates won. KPMG told the
Guardian this week that the firm relied at the time on statutory
declarations (sworn statements) from Bates, his solicitor Mark Taylor
who is also a Leeds director, and Shaun Harvey, Leeds' chief executive,
that "there was no connection between Astor and Krato with Forward
Sports Fund".
It was then pointed out that Leeds's 2006 accounts
had stated that Astor "has an interest" in Forward, but Bates'
solicitor Mark Taylor said the connection had been severed before the
club went into administration.
At a Jersey court hearing on 29
January, a letter from Leeds' solicitors, replying to Weston's
questions, was read out, stating of Forward's formation: "One share was
initially held by Astor Investment Holdings Limited, a unit trust fund
based in Guernsey. Astor Investments then instructed professional
agents to incorporate Forward Sports Fund, and Astor Investments then
proceeded to loan money to Forward Sports Fund to undertake its
investment in Leeds."
Willis said he was shocked by that: "We
were told there had been an interest but I am dismayed to find that
Astor actually owned the club originally. I believe KPMG should have
made further investigations at the time to find out who the owners
were. The FA and Football League should investigate, as should the
Treasury because so much tax was left unpaid." Taylor rejected that,
saying: "There is nothing to investigate." At the time he said Astor
had favoured the Bates bid, writing off millions of pounds, because
Bates and Harvey had football experience. KPMG, which made £693,200 in
fees as Leeds' as administrators, declined to comment.
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Sorry Macca - it's the curse of Bates old lad
