4 December '02 - EMAG Press release - "No confidence" in the Vanni Treves's Equitable regime

Enough is enough, says EMAG: "It's time for a regime change".

Last week EMAG wrote to all non-executive directors of Equitable Life to recommend that they immediately replace Vanni Treves with a full time, experienced company doctor as chairman - before it's too late.

The letter began:

"First, leaving personalities aside, the executive structure of the Society needs to be deepened and strengthened. The present Chairman's lack of relevant experience and his extensive other commitments mean that he cannot perform the necessary function.

Secondly and most unfortunately, Mr. Treves' record since becoming Chairman has destroyed his credibility as leader of the Society."

EMAG maintains that the Vanni Treves and Charles Thomson partnership has been disastrous for policyholders, that this management is not in control and it's unravelling before our eyes.

The letter goes on to quote what it claims have been five major strategic errors:

1. An undue delay until July 2001 in stopping members departing with significantly more than their asset share. We have calculated that this cost the remaining members circa £200m.
2. A flawed compromise which grossly prejudiced the non-GARs by making only a minimal attempt to redress the inequity of the House of Lords decision and discounted Warren & Lowe's second report. The Compromise directly led to the Bacon & Woodrow report, with up to £75m more in provisions and the inappropriate proposal of another section 425 agreement. (EMAG proposed a mechanism for redressing the inequity in 2001).
3. The failure to face up to and deal with the GIR issue (as EMAG proposed in August 2001), which hamstrings the Society, within the GAR compromise and the very serious failure to declare and highlight the GIR ramifications in the Compromise.
4. The failure to have one clear-down in 2001 which has resulted in "death by 1000 cuts" and widespread mistrust of the Society.
5. The failure to investigate unit linking the fund."

Policyholders have watched Equitable Life's sickening slide for two years from ledge to ledge, seemingly down the face of the Eiger. Few dare to believe that the bottom has yet been reached.

EMAG argues that Treves simply hasn't had the time to apply to what has increasingly been revealed to be a terrible mess. Treves has three other chairmanships, including the troubled TV Channel 4, plus two dozen other company directorships and as many again committees commitments in the City, arts and charities. Through the last month and three sets of yet more bad news (annuitant cuts, interim accounts and Bellringer) he has been noticeably invisible.

Paul Braithwaite, EMAG's spokesperson said:

"EMAG deplores that Vanni Treves has consistently avoided addressing mis-regulation and, thus far, failed to back the ALL action Group "E 7" call on the Parliamentary Ombudsman to get on now with investigating maladministration in the 1990s, with a view to compensation."