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Item 7 Postage Stamp Frauds
21.
Mr Moody spoke to the paper which he had circulated (copy attached). He was now more optimistic on this matter. Two types of
fraud had been committed, relating to over-runs, and varieties and errors. Several different printers and distributors were involved. As far as DTs were concerned, the police were likely to concentrate their investigations on the fraudulent Falklands and Gibraltar issues, but they had not yet decided precisely which issues to chose. A meeting would be held soon with the Crown Presecutionn Service. Departments should advise DT governments that individuals (eg Managing Director of CAPHCO), rather than organisations, were corrupt. The police were now less concerned about CAHPCO. The fraud problem would probably prove self-resolving. DTS should be discouraged from tracing back their issues over the last decade to
check if they had been defrauded; such an exercise would be
pointless. But we should be concerned at the effects of this
scandal on the world stamp market, and the possible decline in
revenue from philatelic sources for some DTs.
22. Mr Turner asked whether any of those likely to be prosecuted
still held positions of responsibility. BIOT was about to go ahead
with a new issue. Should they delay? Mr Moody said that CAPHCO's
Managing Director was still in place, but he had been arrested and
the company was under investigation. In these circumstances,
further fraud was unlikely. BIOT should go ahead with their plans.
Mr Waterworth observed that once police report was in place some DTS
might decide to pursue CAPHCO for damages. Hence they might wish to
undertake a retrospective audit on profitable issues.
Item 8 Aid Matters
23. Mr Warren reported that CAD/ODA's proposal paper relating to
aspects of the administration of governors' posts was under
reconsideration and might be tabled at the DTLGs next meeting.
PJ5AAD/10
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