Chelsea probe: GFSC denies its involvement

GUERNSEY'S financial regulator yesterday distanced himself from allegations involving Chelsea Football Club and a local company. Peter Neville, director-general of the Guernsey Financial Services Commission, confirmed that he had spoken to a journalist from The Times on Thursday. It reported that the GFSC had tipped off the UK regulator, the Financial Services Authority, with information about the owners of Chelsea Village shares. But Mr Neville said yesterday that he had neither confirmed nor denied this to the journalist. 'As far as the FSA is concerned we do liaise with them, but it would be inappropriate for me to say whether or not I have regarding this,' said Mr Neville. The GFSC is, however, still carrying out a six-month long investigation into a previous matter relating to Harbour Trustees, a company licensed under local fiduciary law. Mr Neville would not reveal the nature of the inquiry for confidentiality reasons. National newspapers have been making allegations about Harbour, and co-founder Patrick Murrin, for some time. Yesterday's Guardian went into great detail about the complex link between various companies and Chelsea Village. Mr Murrin was unavailable for comment yesterday, but has previously refused to talk to the Guernsey Press about national newspaper claims. The FSA is already investigating claims that the stock market may have been misled as to the proper ownership of Chelsea Village in the period leading up the £140m. takeover by Russian billionaire Roman Abramovich. In yesterday's Daily Mail, Chelsea chairman Ken Bates attacked the FSA for launching a second investigation. He is reportedly fed up with the innuendo and has threatened to take it to the High Court if it cannot justify its actions. Comments such as those in The Guardian, which said that Guernsey's offshore tax status 'enabled companies to operate under a veil of secrecy', could damage the island's reputation. The Guernsey International Business Association, which Mr Murrin once chaired, and its offshoot, the Guernsey Promotional Agency, may have to react to quell rumours. 'By any measure applied by such organisations as the Financial Action Task Force or the OECD, Guernsey is a well-regulated international finance centre of undoubted quality,' said Giba chairman Robin Fuller. 'This is recognised in professional and financial circles around the world but it is not always recognised at popular level.' Giba believes that it will have to work hard to counter misinformed comment in the national media and that it is important it does not make any assumptions regarding the island's overseas profile. 'It is because we do have to go the extra mile in making our position understood that Giba was instrumental in forming the GPA. This monitors press comment and seeks to inform and educate on our position. This is a constant process,' he said. The GPA is believed to be speaking to The Observer following a recent article that put Guernsey, Jersey and the Isle of Man on an OECD blacklist. Mr Neville said that there was bound to be a great deal of public interest in the allegations because of the high profile of Chelsea and Mr Bates. Speaking from Malta, Mr Neville confirmed that he had been contacted 'by a considerable number' of national newspapers yesterday. Asked if he saw it as good or bad publicity for the commission and Guernsey plc, Mr Neville replied: 'We will have to wait and see'. 'It is unfortunate that there is so much concern about it, but it is not surprising,' he added. * On the field, Chelsea played in the Asia Cup yesterday and beat Malaysia 4-1 to go through to the final against fellow Premiership side Newcastle United.