Contact: Oriana Pound
Deloitte Touche Tohmatsu
+44 20 7303 5055

London, June 11, 2003 — We are extremely satisfied with the outcome of the long-running Barings trial.  Today's judgment by Mr Justice Evans-Lombe in the High Court in London is a vindication of our audit performance, and it is an unequivocal determination that officers of Barings Bank, not Deloitte & Touche Singapore, were responsible for the failure to prevent Nick Leeson's fraud and the subsequent collapse of the bank.

Over twenty of the allegations originally made against the firm were either dropped by the claimants or dismissed by the Judge.  He found the firm only to have been negligent with respect to two very narrow technical issues.  He described one as 'a finely balanced question of judgement'.  The other, which the Judge found led to no damage, constituted negligence only because of our 'specialist knowledge'.  

In the Judge's opinion, the audits performed by Deloitte & Touche Singapore were conducted reasonably and with 'great thoroughness'.  This confirms the previous findings of the Singapore Public Accountants Board. We expect that the application of the principles in today's judgment will absolve Deloitte & Touche Singapore of any financial obligation, which could, in any event, not exceed £1.5 million.  The matter of costs is also still to be determined, but Deloitte & Touche Singapore will seek, and expects, to recover substantial sums.

Notwithstanding these isolated findings of negligence, the Judge held that Deloitte & Touche Singapore had acted reasonably.  This is a deserved and gratifying result for the Singapore partners who have, since 1995, lived under accusations of severe negligence and devastating damage claims exceeding £1 billion.  We are pleased that their determination to resist these allegations has been vindicated.

Notes to Editors
Deloitte & Touche Singapore is the Singapore member firm of Deloitte Touche Tohmatsu, one of the world's leading professional services organizations. Deloitte Touche Tohmatsu is a Swiss Verein, and each of its national practices is a separate and independent legal entity.