Ombudsman's report is clear: 'government should do the honourable thing on Equitable Life'

11.18.59am BST (GMT +0100) Wed 6th May 2009

Liberal Democrat MEP Diana Wallis, author of the European Parliament's investigative report into the failure of Equitable Life, has today welcomed the Parliamentary Ombudsman's follow-up report criticising the government for sidestepping compensation for some investors in Equitable Life.

The Parliamentary Ombudsman's report into the near-collapse of the private pension provider identified maladministration by various government departments. Despite a government apology, she has produced a report into the response entitled Injustice Unremedied.

Diana Wallis MEP, a Vice-President of the European Parliament, said:

"The Parliamentary Ombudsman makes just the point we have been making: that this is a screaming injustice still waiting to be remedied. It beggars belief that the Government has still issued no more than a letter to reply to our Parliament's detailed report of hundreds of pages setting out compelling evidence of regulatory failure.

"When will this government own up? It should do the honourable thing and compensate the losers on the basis of justice, not need, which is a measure no court of law would use as a yard-stick. the Chadwick enquiry set up the government is just a further delaying tactic and it is good that the Ombudsman had stood up and denounced it so roundly.'