Latest news with #CraigWhyte
Yahoo
a day ago
- Business
- Yahoo
Takeover can 'extinguish the rot' at Rangers
The takeover of Rangers by an American consortium can "extinguish the rot" that has persisted since Craig Whyte's ill-fated reign, says departing director Alastair Johnston. Whyte bought Rangers from Sir David Murray in 2011, ousting Johnston as chairman, and the club lurched to financial collapse the following year before re-emerging in the bottom tier of Scottish football. Celtic have dominated the domestic game since, but Johnston is hopeful of brigther times ahead after a consortium led by healthcare tycoon Andrew Cavenagh and 49ers Enterprises last week acquired a 51% controlling stake in the club. Johnston, who returned to the board as a non-executive director in 2017 when Dave King was chairman, is standing down with a new-look board taking shape but the United States-based Glaswegian and lifelong Rangers fan is optimistic about developments. The 76-year-old told the PA news agency: "I was asked to respond to a question at the Rangers AGM last December as to the options available to the club in order for it to return to its glory days. "My comments were reported at the time as being somewhat bemusing. I responded by describing the current circumstances in English football about so many of the leading clubs being taken over by American investors and, in several cases, their approach included an ownership model that involved multiple teams. "I was careful to insinuate that this was a hypothetical possibility. In truth, I was already aware of the interest that a group involving the 49ers had shown in Rangers and that we had already engaged in early-stage discussions with its representatives. "Understandably, the possible investors wanted to maintain the utmost secrecy as to the direction of their mission. "It took about six months for the Rangers board to reach a mutually acceptable arrangement that would be in the best interests of our club. "Intense negotiations were conducted covering all facets of such an acquisition, and I am delighted we were able to capitalise on a collaboration that we believe will provide us with a platform to extinguish the rot that had befallen the club for a decade since the Craig Whyte fiasco."
STV News
a day ago
- Business
- STV News
Johnston hopes takeover can start to ‘extinguish rot' from Rangers past
Departing Rangers director Alastair Johnston believes the takeover of the Ibrox club will 'extinguish the rot' which lingered since Craig Whyte's ill-fated spell. Johnston was ousted from his post as chairman when Scottish businessman Whyte bought Rangers from majority shareholder Sir David Murray in May 2011. The club subsequently lurched into administration in February 2012 and then were consigned to liquidation three months later, before Rangers re-emerged in the bottom tier of Scottish football as a new company with Whyte having departed under a cloud. Johnston predicted then that it would take a decade for the Govan club to recalibrate. Although they lifted the Scottish Premiership title in 2021 and enjoyed success in Europe, Celtic still retain a strong grip on Scottish football with 13 title wins in the last 14 years, amongst a plethora of other silverware. However, Rangers fans and Johnston are looking for better times ahead following the confirmation last week that an American consortium, headed by healthcare tycoon Andrew Cavenagh and the 49ers Enterprises, has acquired a 51 per cent controlling stake in the club. Johnston, who returned to the board as a non-executive director in 2017 when South Africa-based Dave King was chairman, is standing down with a new-look board taking shape but the United States-based Glaswegian and lifelong Gers fan is optimistic about developments. The 76-year-old told the PA news agency: 'I was asked to respond to a question at the Rangers AGM last December as to the options available to the club in order for it to return to its glory days. 'My comments were reported at the time as being somewhat bemusing. 'I responded by describing the current circumstances in English football about so many of the leading clubs being taken over by American investors and, in several cases, their approach included an ownership model that involved multiple teams. 'I was careful to insinuate that this was a hypothetical possibility. 'In truth, I was already aware of the interest that a group involving the 49ers had shown in Rangers and that we had already engaged in early-stage discussions with its representatives. 'Understandably, the possible investors wanted to maintain the utmost secrecy as to the direction of their mission. 'It took about six months for the Rangers board to reach a mutually acceptable arrangement that would be in the best interests of our club. 'Intense negotiations were conducted covering all facets of such an acquisition, and I am delighted we were able to capitalise on a collaboration that we believe will provide us with a platform to extinguish the rot that had befallen the club for a decade since the Craig Whyte fiasco.' Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Herald Scotland
3 days ago
- Business
- The Herald Scotland
Why the failed Rangers fraud case has cost the taxpayer over £60m
Criticism over the 'state of inertia' has come nine years after judges in England said part of the investigation was an "abuse of state power". There are concerns that no actions have been taken to formally investigate criminal complaints arising from the conduct of the police investigation the first of which were understood to have been lodged nine years ago. And preparations for a promised judge-led public inquiry into the affair are considered by some to be in a state of inertia despite pledges to establish one - over four years ago. What was the Rangers fraud case about? The case revolved around the 2012 financial collapse and subsequent sale of Rangers Football Club, one of Scotland's largest and most historic football teams. ____________________________ READ MORE Cover up' over nine-year failure to probe Rangers fraud arrests & state power abuse ___________________________ It came in the wake of the purchase of the club by businessman Craig Whyte from from Sir David Murray for £1 in May 2011 and against a backdrop of the controversial nature of his nine-months in charge. Craig Whyte It became controversial because Mr Whyte supported the funding of the purchase through selling the rights to future season ticket sales to the London-based agency Ticketus to raise £24m and pay off bank debt as part of his share purchase agreement. It was alleged that Mr Whyte misrepresented the source of the funds and failed to pay taxes leading to the club falling into administration in 2012. Within four months, the company's business and assets were sold to the Sevco consortium fronted by former Rangers chief executive Charles Green for £5.5 million. Scotland's Crown Office subsequently initiated a series of fraud and financial crime investigations, accusing seven former club executives and financial advisors of criminal misconduct during the sale and administration processes. However, these prosecutions turned out to be fundamentally flawed. Multiple individuals were arrested and charged, but the charges were either dropped, dismissed by the courts, while prosecutions against four of the seven were found to be malicious. All four successfully won claims for compensation for damages. So there was a cost to the taxpayer? Yes. Latest government calculations seen by the Herald shows it amounts to over £60m. Administrative spending, including staffing and legal costs paid out to contest concluded civil cases arising from the failed fraud case amounted to £9.429m up to Oct last year The compensation costs paid out in the civil cases has amounted to a further £51.7m. Imran Ahmad (left) with former Rangers chief executive Charles Green But it is understood that a settlement payment of £528,615 to Imran Ahmad, the former Rangers commercial director who it was admitted was maliciously prosecuted is not included in this calculation, along with any costs being claimed by him. Who was wrongly prosecuted? David Whitehouse and Paul Clark, joint administrators of Rangers working for Duff and Phelps was arrested and charged in 2014, and the charges were dropped in 2016. They were later awarded damages and costs for malicious prosecution at more than £21m. David Whitehouse (left) and Paul Clark Charles Green, former chief executive of Rangers was arrested and charged in 2015 and had charges dropped in 2018 and was awarded £6.3m damages for malicious prosecution. Also gaining more limited damages of over £600,000 was Imran Ahmad, the former Rangers commercial director who it was also accepted was maliciously prosecuted. Kroll, which was formerly called Duff & Phelps, which began court action against the Crown Office for reputational damage came to a settlement with the prosecution service and thought to have received a £15.5m payout. Craig Whyte, the former Rangers owned was acquitted of all charges in 2017 after a high-profile trial but as of now has not received any damages. It is understood a claim for £500,000 against the Lord Advocate was dropped. Gary Withey, a solicitor at the London law firm Collyer Bristow, played a significant role in Craig Whyte's purchase of the club. But he passed away in 2019, at the age of 55. Former Duff and Phelps consultant David Grier who was arrested in connection with the sale and administration of Rangers and had charges dropped, pursued a £9m damages claim but the Court of Session decided there he had failed to prove he was victim of malicious prosecution but accepted that it "lacked reasonable and probable cause". He took the case to the highest court in the UK, the Supreme Court but permission to appeal was refused. Why were the prosecutions considered malicious? Scotland's senior law officer, the Lord Advocate admitted that they acted without probable cause and with malice when pursuing four of the men. It meant the legal actions should never have been brought forward. Courts found that there were no reasonable grounds for arrest or prosecution. There were failures in disclosure and misuse of court procedures. Evidence was not properly presented or was missing altogether. In 2016, High Court judges in London ruled police and prosecutors "abused state power" in a raid during an investigation by seizing privileged documents. James Wolffe Scotland's then Lord Advocate, James Wolffe, eventually issued formal apologies to some of the wrongly accused and he stepped down from his post three months after agreeing with the Scottish Government, in February, 2021 that there would be a public inquiry. Why does this case matter so much? It is one of the most expensive legal failures and some would say scandals in recent history in Scotland, not just in terms of cost, but also public confidence in the legal system. Key concerns have included abuse of state powers, a lack of transparency of prosecution processes, the use of public money and the role of legal accountability in high-profile cases. What consequences have there been for those responsible? There has been significant political and public pressure on the Crown Office and Lord Advocate's Office over their handling of the case but so far no-one has been brought to task over the failings in the prosecutions. Public apologies have been issued to those wrongly and maliciously prosecuted. The home of Rangers - Ibrox (Image: Archives) Mr Wolffe during key parts of the scandal, faced questioning by MSPs but stood by the professionalism of the Crown Office overall. There have been calls for systemic reform of how Scotland handles complex fraud cases. What next? The Scottish Government and the Crown Office are now under pressure to act on long-standing criminal complaints and the promise of a four-year-old promise of a judge-led public inquiry.
