Impact of LIBOR on Barts NHS PFI Hospitals?

Joel Benjamin made this Freedom of Information request to Barts Health NHS Trust

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The request was successful.

Dear Barts Health NHS Trust,

In March 2006, the predecessor of Barts Health NHS Trust signed up to a £1.149 billion Private Finance Initiative deal, relating to Bartholomews and Royal London Hospitals.

Subsequently it emerged in July of 2012, that Barclays and other UK and global had been rigging LIBOR, the benchmark global interest rate referenced by PFI swaps and derivates contracts and management fees.

It is now known that the banks were involved in rigging LIBOR from at least 2005 until 2012, with serious consequences for the billions of pounds of taxpayer repayments linked to NHS PFI contracts subject to the rigged LIBOR rate.

Please provide:

1. The original business case for Bartholomews, and Royal London PFI Hospitals, including full details of any relevant embedded of stand-alone swaps and derivatives contracts applied to these PFI loans.

2. Please provide copies of all internal or external financial and legal advice Barts NHS Trust has received in relation to LIBOR, and its actual or potential impacts on NHS, and specifically PFI finances.

3. Please outline any action Barts NHS has taken to determine actual or potential losses arising from LIBOR manipulation, or intends to take in future to determine and/or recover public losses arising from this fraud.

For further information, please refer to Allyson Pollock in the BMJ http://www.bmj.com/content/345/bmj.e5095

Yours faithfully,

Joel Benjamin

Dear Joel,

Request for Information [FOI/555/13]

Thank you for your request for information.

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Yours sincerely,

Laura Hynds

Corporate Affairs
Barts Health NHS Trust

1 Attachment

FAO Mr Joel Benjamin

 

Dear Mr Benjamin

 

Thank you for your recent FOI request.  I now have the information you
require and this is as set out below

 

Your Question 1:   The original business case for St Bartholomews and The
Royal London PFI Hospitals, including full details of any relevant
embedded of stand-alone swaps and derivatives contracts applied to these
PFI loans.

Our response:  This is attached

 

Your Question 2:  Please provide copies of all internal or external
financial and legal advice Barts NHS Trust has received in relation to
LIBOR, and its actual or potential impacts on NHS, and specifically PFI
finances.

Our response:   To date the Trust has not taken legal advice in relation
to LIBOR.  The Trust has however received advice that the financial model
associated with the PFI contract has no reference to LIBOR.   

 

Your Question 3:  Please outline any action Barts NHS has taken to
determine actual or potential losses arising from LIBOR manipulation, or
intends to take in future to determine and/or recover public losses
arising from this fraud.

Our response:  Not applicable.  As stated above, we have been advised that
the financial model associated with the PFI contract has no reference to
LIBOR

 

I hope that this information will be of value to you.  However, if  you
have any queries please contact us at [1][email address]

 

We would be grateful if you would take a minute to fill out our FOI
Feedback Questionnaire at [2]www.bartshealth.nhs.uk/foi-feedback.

 

If you are dissatisfied on how your request has been handled, you can
complain in writing to:   Email: [3][Barts Health NHS Trust request email]
Postal address:

Freedom of Information,

c/o Archives & Records Centre,

Barts Health NHS Trust,

Lower Ground Floor,

9 Prescot St,

Aldgate, London E1 8PR

If, after we have addressed your complaint, you remain dissatisfied with
how we have responded, you are entitled to appeal to the Information
Commissioner (Tel: 01625 545 745);    Details are shown at
[4]www.ico.org.uk  

Yours sincerely,

Pamela Wood

 

Corporate Records
Barts Health NHS Trust

 

--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

 

Dear Barts Health NHS Trust,

 

In March 2006, the predecessor of Barts Health NHS Trust signed up to a
£1.149 billion Private Finance Initiative deal, relating to Bartholomews
and Royal London Hospitals.

 

Subsequently it emerged in July of 2012, that Barclays and other UK and
global had been rigging LIBOR, the benchmark global interest rate
referenced by PFI swaps and derivates contracts and management fees.

 

It is now known that the banks were involved in rigging LIBOR from at
least 2005 until 2012, with serious consequences for the billions of
pounds of taxpayer repayments linked to NHS PFI contracts subject to the
rigged LIBOR rate.

 

Please provide:

 

1. The original business case for Bartholomews, and Royal London PFI
Hospitals, including full details of any relevant embedded of stand-alone
swaps and derivatives contracts applied to these PFI loans.

 

2. Please provide copies of all internal or external financial and legal
advice Barts NHS Trust has received in relation to LIBOR, and its actual
or potential impacts on NHS, and specifically PFI finances.

 

3. Please outline any action Barts NHS has taken to determine actual or
potential losses arising from LIBOR manipulation, or intends to take in
future to determine and/or recover public losses arising from this fraud.

 

For further information, please refer to Allyson Pollock in the BMJ
[5]http://www.bmj.com/content/345/bmj.e5095

 

Yours faithfully,

 

Joel Benjamin

 

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