Select Committee on Standards and Privileges First Report


APPENDIX 9

Letter from Mr Stuart Benson to the Parliamentary Commissioner for Standards

  Thank you for your two letters of 12 March.

  One of them raises four questions. Mr Al-Fayed's replies are as follows:

  (i)   It is correct to say that there are no private apartments at the Ritz hotel, nor have there been at any time during Mr Al-Fayed's ownership. Accordingly, there was never any question of Mr Hamilton being offered use of private apartments at the Ritz either in 1987 or at all.


     He did apparently make a request to stay at one of the private apartments owned by Mr Al-Fayed elsewhere in Paris in 1990. Mr Al-Fayed personally has no recollection whatsoever of any such arrangement either having been requested or offered, but entirely accepts that arrangements for a stay were made through his Park Lane office. It would seem that a reservation was made for Mr Hamilton at apartment No. 1 Arsene Houssai, Champs Elysee for 4 nights commencing 5 July 1990. It appears from the records available that he was due to arrive on Air France flight number 1417 arriving Paris at 20:15 hours.


     However, the reservation was cancelled and Mr Hamilton did not arrive.


     No one I have been able to speak to during the time available has any recollection as to why the reservation was cancelled and, as I say, Mr Al-Fayed personally has no recollection of the matter whatsoever.


     As to Professor Barry Rider, his views and comments appear to be based largely upon a briefing from Messrs Denton Hall which in turn was based upon a debriefing by them of Francesca Pollard. I am in some degree of personal difficulty on this issue in that I know the Partner who was until very recently Head of Denton Hall's Litigation Department and who I understand was involved in the debriefing of Mrs Pollard following her reconciliation with Mr Landy and Mr Rowland; I have some knowledge of the private views which he formed on her mental state. If you see it as a key issue to decide upon Mrs Pollard's role in this entire matter, and the credibility of the information she gave to Mr Rowland and to Denton Hall, please let me know as we would wish to address you at some length. I would also want to make further enquiries of former Partners of Denton Hall.


     I also have a very lengthy transcript of a conversation which took place, after the "reconciliation", between Mrs Pollard's brother and Royston Webb, which will be of relevance. I think you are also aware that, even during the past few months, she has been in contact with Mr Macnamara apparently offering information and assistance to Mr Al-Fayed. Mr Macnamara merely referred her on to you, but I think the very fact that she has apparently been in contact with every party to your various enquiries offering assistance is indicative of the true worth of her information and evidence.


     In short, so far as Professor Barry Rider is concerned, it may be that the views he has reached are based largely on information received from Lonrho and Denton Hall which in turn was based on statements made by Mrs Pollard. As such, his views are not therefore well founded. It is undoubtedly true that Mr Al-Fayed was critical of Professor Rider in relation to his role within the DTI Select Committee. Indeed Mr Al-Fayed expressed his concern about the very close relationship which existed between Sir Edward du Cann (Chairman of Lonrho), Mr Kenneth Warren (the Chairman of the Select Committee) and Professor Rider. Those criticisms were made publicly and openly, and Mr Al-Fayed categorically denies that he did anything untoward so far as Professor Rider or the Select Committee are concerned. As you will know from Professor Rider's letter, the Director of Public Prosecutions took no action, following an investigation by the police, on the basis that the allegations depended almost entirely on Mrs Pollard uncorroborated evidence. That to my mind speaks volumes.


     Turning finally to the further letter you have received from Mr Betterman, I do not know whether you have sent a copy of this to Alison Bozeck. Please let me know if you want me to make contact with her. I am sure, however, that her recollection remains unchanged. As to Mr Betterman's credibility, you have already received information from Mr Macnamara but if you see this as an issue of real importance I will ask him to let me have any further information he may have. At present, he is in Canada but is likely to return by the weekend.


  (ii)   See above. Mr Al-Fayed's son does not have any apartment of his own in Paris. I notice that your letter refers to a stay in June 1990, whereas both the message book and such other records as exist point to a stay having been arranged for July 1990. Is it suggested that another stay was arranged, and took place, during June, and involved arrangements with Mr Al-Fayed's son? His son is in fact in Canada at the present time and I have not yet made contact with him. However, if you would like me to do so, please let me know.


  (iii)   The Observer published extracts from the DTI Inspectors' Report in March 1989. In March 1990, the Report itself was published. Between those two dates, and leaving aside any other issue or consideration, there was in any event less need for, or value in, Parliamentary activity. Although post-March 1990 Mr Al-Fayed has recollection of some very limited on-going contact (he did for example write to Mr Hamilton in 1992 to congratulate him on his appointment as Minister for Corporate Affairs at the DTI) he has no recollection of further meetings between the two of them post-March 1990.


      I am not sure whether this is sufficient to answer your question. You will appreciate that Mr Al-Fayed is an extremely busy man and has not therefore had a great deal of time since I received your letter to give thought to the question you raise. If, however, there is any particular contact alleged by Mr Hamilton which you would like me to raise with Mr Al-Fayed, please let me know.


  (iv)   I apologise for not replying earlier to the question raised in your letter of 27 February regarding Mr Smith. Mr Al-Fayed has no recollection of making cash payments to Mr Smith much earlier than around the time of the General Election, and he therefore accepts your assumption as being correct.

  I turn next to your other letter of 12 March enclosing letters from Messrs Betterman and Land, and Professor Barry Rider.

  As far as Mr Land is concerned, I am not sure whether you have sent a copy of his letter direct to Mr Webb. In any event I have now done so although I know that Mr Webb is abroad in Spain returning at the end of this week. I have asked him to write to you direct with any comments he may have.

  More generally, I understand from our conversation this morning that you are now intending to finalise your Report by the end of next week. I will arrange to let you have by the end of this week any further and final comments from Mr Al-Fayed and if, in turn, there are any other remaining issues that you want to raise with Mr Al-Fayed, please let me know.

19 March 1997


 
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Prepared 8 July 1997