XN000022-1995-05-01 — Page 2

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Graham Grant's appointment to handle BMFL case justified

An internal audit team of the Legal Department tasked to examine fees paid to counsel handling the Bumiputra Malaysian Finance Limited (BMFL) case has found the decision to brief Mr Graham Grant to handle the case after he left the Legal Department was justified, the Attorney General, Mr Jeremy Mathews, said today (Monday).

Addressing a meeting of the Legislative Council Panel on Administration of Justice and Legal Services, Mr Mathews said a report submitted by the internal audit team, headed by Deputy Principal Crown Counsel, Mr Kenneth Somerville, also endorsed the decision to brief Mr Grant on a non- standard basis.

The Attorney General said the report found, as a matter of fact, Mr Grant had not on any occasion claimed fees for an 18-hour day.

Of the 762 working days during the period covered by the Report, Mr Grant charged for 13.5 hours or more a day on 23 days, he said.

The review of the fees had also revealed no evidence of payment in excess of the rates agreed nor did it suggest that the hours charged were not worked, apart from $13,200 which was inadvertently paid and which would be deducted against outstanding payment, he added.

Mr Mathews said the Report noted that the senior management of the Prosecutions Division, Legal department, were concerned at the escalating costs and that some measures were taken which resulted in considerable savings.

On the other hand, Mr Mathews said the Report:

believes that the brief fee and fee rates approved for Mr Grant's

retainer were over-generous;

notes that the main factor influencing the level of Mr Grant's fees was not the fee rates, but the number of hours expended;