Select Committee on Standards and Privileges First Report



APPENDIX 116

Letter from Mr Michael Land to the Parliamentary Commissioner for Standards

  Thank you for your letter dated 24 February in connection with your inquiry into certain allegations made against Members of Parliament.

  I am pleased to assist you the best way I can - but would ask you to bear in mind that the period you are looking into is some 10 years ago and I must rely on memory for the information you seek.

  May I begin by drawing your attention to two small matters I feel should be cleared up namely:

  (a)   I object to paragraph 2 of your letter which makes the assumption that I was engaged as some sort of "industrial spy". Nothing was further than the truth, as I outline below in the replies to your specific questions. I became involved with the Fayed organisation in late March 1987. I left Lonrho some nine months previously.

  (b)   I am concerned at your assumption that "my services were eventually dispensed with". This is far from the truth as my reply to your last question highlights.

  I now turn to your questions and give my replies as follows:

1. Your relationship with Sir Andrew Bowden

  I joined the Conservative Party in the mid 1970s, but Sir Andrew was already known to me as I had stood as a Liberal Candidate for local elections some years earlier. At the time you are enquiring into I was ward officer of the Conservative Association and as such had contact with Sir Andrew at various meetings.

  I would describe my relationship with Sir Andrew as that of his active supporter and my Member of Parliament.

  Since I have left active politics in 1993 I see him only seldom - and then only in public as a speaker - or by coincidence when he might be "doing his rounds" in the area I live. His Constituency Offices are very near my business address.

  1. The date and location of the meeting at which you were introduced by Sir Andrew to Mr Al-Fayed and the names of those present

  I have never met Mr Al-Fayed consequently I was never introduced to him by Sir Andrew or anyone else nor have I ever attended any meeting with Mr Al-Fayed present. I do not keep diaries and whilst I keep an appointments book I no longer have one relating to my appointments 10 years ago - so I am unable to answer your question with the accuracy you may be anticipating.

  I received, sometime in late February or early March 1987, a phone call from Sir Andrew asking if I may be interested in working for the Fayed organisation on a consultancy basis. I was, at the time, self-employed as a Management Consultant. We consequently met to discuss this matter and Sir Andrew related to me his concern over the hammering Fayed was getting from Lonrho, in particular Tiny Rowland. Sir Andrew was concerned about the effect this dispute was having on possible other foreign investors - and I had to agree with him. (All this was before the infamous DTI report which found against the Fayeds. "Lies are truths and truths are lies".) It was agreed a meeting would be set up with the Fayeds and myself. As it transpired the meeting which took place in late March 1987 was between Sir Andrew, myself and the Fayed's then legal advisor Mr Royston Webb. We met at his basement office in South Street, Mayfair, and then went for lunch at the Grosvenor Hotel. As we walked from South Street to the Grosvenor I can recall that Royston Webb told us that we were being followed by his "bodyguards" which the Fayed brothers laid on for him as personal protection against Tiny Rowland. I felt very uneasy about the meeting because (a) I was being watched and (b) this was grossly unfair to Tiny Rowland.

  After lunch I went back with Royston Webb to his offices (but without Sir Andrew who had to go back to the House of Commons). Mr Webb outlined the background to the Fayed/Rowland dispute from the Fayeds point of view. He then began questioning my role at Lonrho. I recall telling him that I was not completely up to date as I had left some nine months previously. I also told him that I would not be prepared to divulge anything I felt was confidential - as he would also not expect me to do about any information he gave me. It was agreed that the best service I could give him was to discuss with him the possible Lonrho and Tiny Rowland's reaction to future scenarios that may transpire. A further meeting was set up between Royston Webb and myself for the next week or so.

  During the next four months I had several meetings with Royston Webb. He was the only person I ever met from the Fayed organisation. I think at only one (possibly two) of these meetings Sir Andrew was present.

  1. Term of any financial arrangement agreed, or discussed, between you and Mr Al-Fayed, and the involvement, if any, of Sir Andrew in these arrangements

  As I never met Mr Fayed no financial arrangement was ever made with him. At the second meeting with Royston Webb, (after the lunchtime meeting at the Grosvenor - and without Sir Andrew present) I brought up the matter of my fee for time spent on the Fayed organisation. I mentioned that I was a management consultant and would Mr Webb like my business to send him an invoice at regular intervals. He said that he would not be involved himself, but arrangements were being made for me to be contacted in due course. I assumed that someone from either Personnel or the Accounts Department would contact me. As it transpired a few days after this meeting I was phoned and asked to collect a letter addressed to me at the reception in the South Street offices I called and was handed an envelope. On opening the envelope I discovered cash totalling £500 in £20 notes. I was not surprised at this as I have worked for Arabs before and been "slipped" envelopes with cash inside.

  This happened three more times over the next three months totalling £1,500. I did raise an invoice for my consultancy company and put the money as a fee through the books.

  I did telephone Sir Andrew and told him that I feel I should give him a commission for the fee I had received as was my practice with anyone who introduced me directly to new business. He declined, and said that he was happy to have helped and that it would not be proper for him to accept it. I remember feeling embarrassed that I had asked him in the first place and apologised. The fact that he would not accept any payment from me is entirely in keeping with Sir Andrew's character.

  1. Your knowledge, if any, of payments of any kind to Sir Andrew by Al-Fayed, whether actually received, or requested by Sir Andrew, and the purpose of these paymentsI

  I have no knowledge of any payments referred to in the question directly. I do know that there was an Andrew Bowden Fighting Fund, the purpose of which was to raise money for both pre-election and election expenses. I now know that a payment to Andrew Bowden Fighting Fund was made by Ian Greer and Associates which I believe was used to buy office equipment and some of the monies went towards pre-election expenses.

  1. The services you provided to Mr Fayed

  Having not met him I never provided Mr Fayed with any "service" directly. However, during my discussions with Royston Webb several scenarios were discussed whereby I was able to outline the possible Lonrho response to actions and statements planned by the Fayed Group. During the time I assisted the Group I felt that I was overpaid. However, I thought my role would develop as I became more aware of the background and history of the Lonrho/Fayed campaign.

  During the second month of my involvement with Royston Webb he outlined the exposure that the Fayed organisation was about to make (or indeed had made - I cannot recall) about the stockpiling of amethysts in Luxembourg which Tiny Rowland had acquired. The essence of the Fayed argument was that this stockpile really was a company asset which should be declared through the Lonrho accounts and thus the shareholders were being cheated. I replied that I had heard this story but had never seen anything to substantiate it. Mr Webb then produced file after file of papers concerning two companies (I think call Blorg (?) and a further company called Contango) of which Tiny Rowland and his then Financial Director were signatories to. He also produced copies of bank statements from the Luxembourg Bank where the company accounts were held and showed me alleged evidence of withdrawals by the then Lonrho Financial Director. I recall asking how he had acquired - what were highly sensitive and confidential papers. I was quite taken back by his reply - which I cannot recall in detail - but it did involve the hiring of private detectives, a break-in to the Luxembourg Bank, and what I consider to be gross deception perpetrated on the Luxembourg Bank.

  In only three or four meetings with Webb over a relatively short space of time I was beginning to doubt whether I should be involved at all with this organisation.

  I was, however, now in the knowledge of what appeared to have been a deception against the Lonrho shareholders. I outlined what I knew about this matter to Sir Andrew, having already written to him some months before about this (I omitted to mention anything about the break-in and events in Luxembourg that Webb was aware of) and Sir Andrew said that he had already approached the appropriate Minister following my original letter to him.

  I was very disturbed at Mr Webb's totally conviction that everything Fayed was good and anything Tiny Rowland was bad. I remember thinking - and indeed still do - that a lawyer of his experience should surely be able to take a step back and be slightly more impartial and be able to recognise prejudice - be it from one side or the other.

6. The reasons your services were eventually dispensed with and the date and means by which that occurred

  During my last meeting with Royston Webb, which took place in early July and at which Sir Andrew was present, much discussion took place between myself and Mr Webb about the attacks an individual called Ms Pollard was making against Lonrho, in particular against Tiny Rowland. She saw herself cheated by Tiny Rowland out of what she considered to be her inheritance, namely the income from the Wankel engine - the rights of which were held by Lonrho. (I may be wrong in detail here - but that is how I recall this matter.) She paraded outside the Cheapside offices of Lonrho on a regular basis and outside the Lonrho AGM holding placards and asking passing policemen to arrest Mr Rowland. It was suggested that I should arrange to meet her and she would enlighten me as to how "awful" Lonrho was. Mr Webb gave me her contact number. I subsequently phoned her and arranged to meet her at Victoria Station. When we met she introduced me to a male "friend". I hailed a taxi for us to go to lunch at my club. When her "friend" said "No - not this taxi, that one", and hailed one himself, for us to use it was clear to me that this was no "friend" but a minder whom I suspected was provided for Ms Pollard by the Fayed organisation. We had lunch and she outlined her case. It was clear to me that she was not acting as a loner - but had funds backing her. When pressed, she admitted that she was receiving funds from the Fayeds themselves. In other words the Fayeds were backing her campaign against Tiny Rowland.

  I felt let down by Royston Webb for not disclosing this. It appeared that I was out of my depth with so many "minders" about the place, with tales of banks being broken into in Luxembourg etc., copies of illegally obtained documents being shown to me, I felt it was time to leave.

  I telephoned Royston Webb the next morning from my home in Brighton and he was very upset and rather rude about my wishing to end the association with his organisation. I recall him saying "we should have had Ms Pollard wired for sound" I remember saying that wasn't necessary as her Fayed paid "minder" was with her all the time.

  I then telephoned Sir Andrew in his offices the next day. I related what had happened and that I was severing my connection with the Fayed organisation I also apologised if this would cause him any embarrassment. It did not seem to effect him one way or the other and we parted on good terms.

  As a footnote I would add that Ms Pollard has since publicly apologised to Mr Rowland and confirmed that she was in the pay of the Fayeds.

  I hope this answers all your queries. I give the above information to the best of my recollection given the lapse of 10 years since most of these events took place.

  Should you have any further queries arising out of the above or wish to see me personally please be assured of my assistance to your inquiry at all times.

M Land

3 March 1997



 
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