London Evening Standard: Ex-Shell boss in showdown with FSA: “The case is crucial for Watts as the US Department of Justice is 'still evaluating' criminal action against Shell directors.”: “Watts is named in US class action lawsuits seeking 'unspecified damages' from present and former directors.”: Monday 25 July 2005

James Rossiter,

25 July 2005

FORMER Shell chairman Sir Philip Watts and the Financial Services Authority (FSA) were today set to clash in a key hearing that could determine the city regulator's legal rights and powers of investigation.

Watts claims he was 'identified and prejudiced' when the FSA explained in a public announcement why it fined the oil giant a record £17m last August over its reserves fiasco. The case is crucial for Watts as the US Department of Justice is 'still evaluating' criminal action against Shell directors.

However the hearing's outcome has far wider implications for the City. It will examine the FSA's powers to identify individuals under investigation, and a person's right to review and rebut its allegations.

Watts is expected to attend today's preliminary hearing at the Financial Services and Markets Tribunal, effectively an appeal court for the FSA ruling, flanked by Martyn Hopper, a former senior FSA enforcement lawyer and now with City solicitors Herbert Smith.

Fighting Watts' corner is David Pannick QC, a leading human rights and international law advocate. Pannick will cross swords with the FSA's lead barrister, Labour peer Lord Grabiner, one of the top commercial silks.

Watts is named in US class action lawsuits seeking 'unspecified damages' from present and former directors. He was ousted in June 2004 with a £1.05m pay-off and £584,000 a year pension after Shell revealed it had exaggerated its proven reserves by a quarter.

The oil giant has advanced $12m (£6.9m) in legal aid to former directors.

http://www.thisismoney.co.uk/news/article.html?in_article_id=402517&in_page_id=2

Click here for ShellNews.net HOME PAGE