EMAG accuses the Treasury of “orchestrating a cover up” which seeks to negate four years of work by the Parliamentary Ombudsman.
It also slams the Government for choosing the actuaries Towers Watson to advise Chadwick and allowing them to select their own peer review panel to endorse their calculations.
General secretary Paul Braithwaite says: “The latest interim report from Sir John Chadwick shows that the Treasury is attempting to retry the case, using actuarial sophistry to distort the figures, instead of accepting the recommendations of compensation found by the Parliamentary Ombudsman and upheld by the High Court.
“The logical conclusion of this sham process is that the Government will deny all obligation to compensate policyholders for the damage done by serial maladministration and only paltry discretionary payments will be made on the basis of charity, not justice.”
He adds: “The consequence of a series of dubious assumptions piled one on another is leading Sir John Chadwick towards, surprise surprise, a conclusion that nothing was wrong in the 1990s after all. It would be farcical if it wasn’t so dangerous to the well-being of the victims of this scandal.”
EMAG won a High Court challenge last year, which found the Treasury’s brief to Chadwick unlawful and forced the remit to cover all investments back to 1991 rather than 1999.
Braithwaite says: “While the High Court judges were clear about the need to treat the Ombudsman’s report as a whole, the Treasury-hired actuaries are choosing only the bits they want and justice is going out of the window.
“We contributed extensively and in good faith to Sir John Chadwick but it’s apparent that he only has ears for the Treasury’s submissions. Yet again, actuaries are being used to obfuscate and deny the real losses their colleagues presided over. The sooner the general election sweeps away this mockery of a process, the better.”