London Evening Standard: Ex-Shell boss aims 'to put record straight': “Watts is accusing the Financial Services Authority of blackening his name by association in its report into the oil giant's disastrous over-reporting of how much oil it had in its reserves.”: Monday 25 July 2005

Jim Armitage,

25 July 2005

SIR Philip Watts, the former chairman of Shell, today launched a legal fight to restore some of his battered reputation.

Watts is accusing the Financial Services Authority of blackening his name by association in its report into the oil giant's disastrous over-reporting of how much oil it had in its reserves.

He is furious that the watchdog published its highly critical findings without giving him the right to defend himself against the allegations.

Under FSA rules, if an investigation is about to criticise individuals, it must first put the charges to the people accused, hearing their defence before publishing its report.

But the FSA did not mention Watts by name in the damning investigation, which resulted in Shell paying a £17m fine last August.

Watts' legal team today told the Financial Services and Markets Tribunal that the FSA's avoidance of naming Watts in the report was 'mischief-making' to avoid a full personal investigation before publishing the findings of its overall Shell report.

His QC, David Pannick, said: 'Sir Philip was entitled to notice [of the allegations] so that he could have a fair opportunity to comment before the FSA published findings that are so critical of Shell and, inevitably, to him personally.'

In response, Lord Grabiner, QC for the FSA, repeatedly rebuffed Watts' argument as being 'nonsense', arguing time and again that the report was referring to Shell and not to Watts.

He added the FSA's job of investigating companies would be impossible if it had to strike out any findings that may be interpreted as blaming an individual.

He said an inquiry with "speed and integrity" had been crucial as the reserves scandal erupted. "We are dealing here with Shell, a large company operating in markets all over the world," he said. 'To have to pre-notify all individuals potentially implicated in the investigation would have been impractical.'

Watts, looking tanned and relaxed as he joked with his legal team during intervals, refused to comment to journalists.

In opening arguments to the quasi-judicial courts, Watts' legal team stated: 'The applicant has never had a hearing, and has never been presented with any charges. It is also the case that the FSA has not yet completed its investigations into the applicant's conduct.'

The FSA had, in legal terms, left him 'identified and prejudiced'.

http://www.thisismoney.co.uk/news/article.html?in_article_id=402530&in_page_id=2

Click here for ShellNews.net HOME PAGE