01 October 2004
Two senior officials at HM Customs and Excise have been suspended after it emerged that both men are under investigation by police probing serious fraud cases.
Terry Byrne, the director general of law enforcement, and David Pickup, the department's chief solicitor, have been suspended indefinitely on full pay pending an investigation into 'non-disclosure'.
Customs and Excise chair David Varney informed them of the decision on September 29, following consultation with civil service head Sir Andrew Turnbull.
The suspensions relate to the Metropolitan Police Services' 'Operation Gestalt' investigation into Customs' handling of excise diversion frauds in the mid-1990s. Those cases focused on alleged smuggling of duty-free alcohol from a London warehouse, which could have denied the Exchequer £600m.
Trials collapsed and guilty verdicts were overturned following allegations that Customs officers incited suspects to commit offences.
Following the debacle, Lord Justice Butterfield announced a review and he provided an 'impact assessment' to the Treasury on September 24.
Treasury minister John Healey this week wrote to John McFall, the chair of the Commons' Treasury select committee, revealing that Butterfield had named 14 serving and six retired Customs officials.
Commenting on Byrne and Pickup, Healey said: 'The seniority of these officers and the broad scope of their responsibilities make it impossible for them to remain in their posts pending investigation.'
Neither man has been charged and Healey has warned that the investigation 'will take some time to complete'.
PFoct2004
