Annex OO
Letter to Mr Bernard O'Sullivan, Titmuss
Sainer Dechert,
from Mr Kevin Maxwell
HOLLIS
INDUSTRIES
PLC
("Hollis")
LOCK
INTERNATIONAL
PLC
("Lock")
TRANSFER
TECHNLOGY
LIMITED
("TransTec")
On behalf of Geoffrey Robinson you have asked me
to set out my recollection of a proposal that in 1990 a management
contract be entered into between Hollis and TransTec in respect
of the Lock business.
I am writing this letter out of my long-standing
personal acquaintance with Geoffrey Robinson and to assist him
in setting the record straight on this particular issue in view
of the substained media witch hunt against him, which I abhor.
This letter has been prepared to the best of my recollection,
but you will appreciate that after nine years memories are not
completely reliable. I have retained no documentation on this
matter myself and have only seen the documents you have supplied
to me.
By the beginning of 1990 Lock was loss making. Geoffrey
Robinson was appointed by my father, Robert Maxwell, to try and
turn the company around. At this time TransTec was, to my understanding,
almost wholly owned by Geoffrey Robinson. TransTec begam to provide
engineering and sales support to Lock to assist with the Lock
business.
Geoffrey Robinson proposed that this arrangement
be formalised under a new management agreement. Ultimately a fee
of £200,000 per annum was arrived at, subject to my father's
approval. I put this proposal to him in his capacity as Group
Chairman. My clear recollection is that my father finally refused
to sanction any such payment, despite having previously verbally
agreed. He was of the opinion that Maxwell interests had lost
too much money in Hollis and he was not prepared to sanction any
payments to Geoffrey Robinson or any company associated with him.
Consequently no payment was made.
Aside from my recollection relating to the general
support TransTec was providing to Lock and my father's refusal
to sanction any payment, I do not recall any of the details surrounding
this matter.
22 February 1999
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