Published on:
11
December 2012
Clackmannanshire Council has recovered more than 90 per cent of the investment following the collapse of the Bank of Credit and Commerce International (BCCI) over 20 years ago.
This week councillors on the Resource and Audit Committee were told that the Council had received an eighth and final dividend of £32,000 following the liquidation of BCCI.
In May of this year, liquidators and lawyers acting for creditors to BCCI held a final meeting. About 150 creditors met at Westminster's Central Hall with liquidators from Deloitte and lawyers from Hogan Lovells.
BCCI was a major international bank founded in 1972 and registered in Luxembourg with head offices in Karachi and London. It operated in 78 countries, had over 400 branches, and had assets in excess of US$20 billion, making it the seventh largest private bank in the world.
The former Clackmannan District Council had temporarily invested £700,000 in 1991 with BCCI, which was subsequently written-off.
Convener of Resource and Audit Committee, Councillor Archie Drummond, announced: "Over the last 20 years the Council has received a number of dividends through the liquidation of BCCI and this final dividend, received this week, brings the level of recovery of the previous authority's investment to 90.06 per cent."
The Council had originally received £15,000 as part of a Government compensation scheme, and over the past two decades has managed to recover £616,911 of the cash invested with the former bank.