In a development to yesterday's story, Equitable Life chief executive Chris Wicarson has criticised coalition MPs, who he alleged were being briefed by the Treasury to support Sir John Chadwick's report on compensation for the life insurance company's policy-holders.
In new developments on Monday night, it was found that MPs had been sending hundreds of suspiciously similar letters to Equitable Life policy-holders, misrepresenting key facts to their constituents - including that Chadwick's recommendations are back by the policy-holders' support group EMAG - regarding the Chadwick report against the Parliamentary Ombudsman's recommendations.
Wicarson made a final attempt yesterday to urge ministers to honour their manifesto commitment to fully compensate policy-holders affected by the company's collapse.
He wants the coalition government to pay the full £5bn that the policy-holders had lost, despite an official report by Chadwick - which the previous government had commissioned - recommending a sum between £400-500m.
Equitable nearly collapsed into bankruptcy in 2000 after facing a fund crisis over guaranteed pension. The Parliamentary Ombudsman, Ann Abraham, recommended that the Government compensate policyholders as there was a regulatory failure on its part.
The Equitable Life (Payments) Bill will be put to debate next Tuesday in Parliament, and a final compensation figure will be announced on 20 October.
