UK - Administrator Deloitte & Touche has criticised unions and MPs for exaggerating the size of ringfenced pensions for directors at beleaguered bus manufacturer Mayflower.
Law firm Denton Wilde Sapte, which represents the administrator, hit back at claims that £10m had been set aside to pay directors’ pensions.
Partner Elmer Doonan (pictured) said Deloitte & Touche had not yet determined the true funding position at Mayflower but the ringfenced benefits were “not even half” the size claimed.
He said: “Politically a lot of people are trying to jump on the bandwagon and pushing for an inquiry, but if the focus is incorrect in the first place such calls are clearly premature.
“At the moment people are keen to have a kick at the fat cats but the directors are not always the ones to blame.”
Doonan also hit back at claims that members had been “kept in the dark” about benefit entitlements.
He said letters had been sent out stating what the administrator was doing and trustees were currently waiting to find out whether there would be a buyer for the business.
Doonan said the £36m Mayflower Corporation Scheme – which has an FRS17 deficit of £17.7m – was not in an unusual position and the deficit would not have posed the company any problems in the long-term.
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