Daniel Hodson, audit committee chairman has wrapped up his testimony. Reinsurance is expected to dominate the next stage of the trial
The nature of Independent’s reinsurance contracts dominated proceedings at Southwark Crown Court today as Daniel Hodson, audit committee chairman, wrapped up his testimony.
Defence counsel took the opportunity to quiz Hodson over how far he and other directors were aware of the progression of reinsurance contract negotiation.
Mukel Chawla QC—asking questions on behalf of former finance director Dennis Lomas—set out the terms of a re-negotiated contract, which Hodson had previously described as “too good to be true.”
Under the terms, Independent was allowed to hold onto its premiums while the reinsurer earned 6% interest on the balance.
According to prosecutors, company chairman Michael Bright had come to a gentleman’s agreement with a reinsurer. Hodson said he had not been informed of other side agreements prior to signing off on the company’s 2000 financial report.
In yesterday’s cross examination, Ian Winter QC, Bright’s counsel, asserted that had Hodson known of the other arrangements the results would have been the same.
Today, during re-examination by chief prosecutor Andrew Baillie QC, Hodson said it was very difficult for the board to fulfill its strategic function without prior knowledge of all the reinsurance contracts.
Much of the testimony has been bogged down in detailed analysis of documents and memos. Judge Rivlin has attempted to expedite the process by encouraging different approaches.
At one point he said to Chawla: “Instead of going through documents in massive detail, why not put your propositions to [the witness] and see if he agrees.”
All three defendants—Michael Bricht, Philip Condon and Dennis Lomas—are charged with conspiracy to defraud. They deny the charges.
The trial continues.
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