Child abuse team told to balance truth against cash

INSURERS warned child abuse investigators that a balance had to be struck between truth and financial interests, it has been revealed at the North Wales abuse tribunal.

They also demanded to see a report of an abuse inquiry team before publication, warned that insurance cover could be removed, insisted on vetting comments and statements, and at one point complained about files being released to the police.

And when independent investigators wanted to advertise their inquiry so that victims of abuse would know they were there, the insurers replied: "Such notices only encourage a bandwagon of claims together with adverse publicity."

A letter to John Jillings, who chaired the last inquiry into allegations of abuse and who had wanted to place the advertisements, said: "While I have a great deal of sympathy with the aims of your panel ... a balance has to be struck between the need to seek the truth and the necessity for the county council and ourselves to protect financial interests."

The insurers also objected to the setting up of one inquiry, saying it was a dress rehearsal for compensation claims and adding: "We are concerned to avoid stirring up complaints particularly as two of the ring leaders have given up."

The insurers also warned Clwyd against implicating other agencies: "As you know, your insurers are interested as insurers of other social service authorities, the North Wales Police, and other public bodies, and will not be pleased if there is an attempt merely to shift blame."

Gerard Elias QC, counsel for the tribunal, outlining the role of the insurers, said, "We submit that some of the insurers' directives, for that's what they appeared to be, went well beyond that which was proper for a commercial organisation seeking to advise one or its clients or protect its own financial interests."

The tribunal was told that the insurers were the Municipal Mutual, some of whose affairs were taken over by Zurich Municipal. John Goldring QC, counsel for the insurers, said, "They accept that in hindsight ... the tone of the correspondence was at times intemperate and went too far in the demands made of the council."

n The tribunal is to investigate the financial affairs of a jailed paedophile who was paid pounds 28m for looking after children and who claims he has no money to pay for legal representation at the hearings

John Allen, who ran the Bryn Alyn Community, had claimed that he does not have sufficient funds to pay for legal representation at the tribunal, leaving the Welsh Office to pick up the bill.

But Allen, who once had an address in Harley Street and who was drawing an income of pounds 200,000 a year, will now have his finances probed following the granting of an injunction.