Top RBS banker ‘extorted money from customers’
Police probe struggling f irms’ payments
A MAJOR investigation has been launched amid allegations that a former Royal Bank of Scotland (RBS) manager solicited bribes in return for showing leniency to small businesses in financial trouble.
It is alleged the former banker – who was employed at the bank’s notorious Global Restructuring Group (GRG) – demanded tens of thousands of pounds in cash from financially struggling customers seeking understanding and tolerance over their growing debts.
It is understood RBS has known about the claims for more than a year and called in police to investigate.
News that the bank is at the centre of a new police investigation will further increase pressure on chief executive Ross McEwan, who earlier this year told the Treasury Select Committee he was unaware of any allegations surrounding criminal activity within the financial institution.
Last night, the bank admitted Mr McEwan had known about the latest probe when he gave evidence to MPs but insisted it was not relevant.
Campaigners, however, called for him to be hauled back in front of MPs to provide details of the alleged scandal.
Stephen Kerr, Conservative MP for Stirling, who is championing the cases of RBS victims, said: ‘[The committee] will be perturbed to think that there was such an issue going on in the background that he was aware of but didn’t deem it appropriate to mention.
‘The people who lost their businesses and so much more because of the activities of the GRG and RBS in general still feel they’re on the receiving end of a culture that is hostile to them and their complaints.
‘It won’t allay their fears that there was still alleged criminal activity going on as recently as 2016 and, when handed an opportunity to give the information to the Treasury Select Committee, Ross McEwan decided not to disclose what he knew about a referral to the police.’
RBS – which has already apologised over previous actions carried out by its rogue GRG division – is believed to also be investigating the latest claims by conducting its own internal inquiry alongside the police probe.
No individual has, so far, been prosecuted over the actions instigated by the group.
The Financial Conduct Authority discovered that the GRG – initially set up to assist troubled companies – had focused on extracting income from those it was supposedly trying to help. Many small business owners have blamed the division for damaging or destroying their livelihoods.
The identity or whereabouts of the former manager have not been revealed, although it is believed he oversaw relations with dozens of companies before leaving the bank in 2016.
The bank insists it was not aware of the allegations until May last year, at which point it informed the police.
An RBS spokesman said: ‘We have been investigating these very serious allegations against a former member of staff for some time and notified all the relevant authorities as soon as we became aware of them.’
Police Scotland confirmed it was investigating the claims as part of an ‘ongoing criminal investigation’.
In January, the Treasury Select Committee cross-examined Mr McEwan and the bank’s chairman, Sir Howard Davies.
Mr McEwan was asked: ‘Do you think that there has been any criminal activity within the bank by your staff?’
He replied: ‘Not that we have seen or had reported and certainly none that the police or the Serious Fraud Office are looking at, to our knowledge.’
Ironically, this new development comes just hours after the Crown Office and Procurator Fiscal Service (COPFS) announced that there is insufficient evidence to prosecute RBS officials for fraud over claims they destroyed small businesses.
COPFS lawyers revealed, however, that it had stopped short of closing the file, and insisted prosecutors would reconsider their judgment should fresh information emerge.