Royal Bank keeps funding security for shamed chiefs

SHAMED bank chiefs including former Royal Bank of Scotland boss Sir Fred Goodwin will continue to receive security funded by the bank, it emerged today.

The multi-millionaire has been under fire for his role in the Edinburgh-based bank's collapse since he left RBS last month. But the Evening News has learned that RBS – which is nearly 70 per cent owned by the Government – will continue to pay for Sir Fred's personal security arrangements over the next few months.

Security has also been offered to Sir Tom McKillop, who quit as RBS chairman earlier this month, as well as three other non-executive directors who resigned in the wake of the bank's dramatic fall from grace.

RBS has refused to reveal how much the security measures for Sir Fred and his family are costing but today said it was company policy to continue security services for board members in the months after they leave.

Sir Fred's homes include a six-bedroom villa in the city's Grange. Security arrangements include RBS-funded intruder alarms and CCTV cameras which are still in place and being monitored by RBS staff.

Taxpayer pressure groups and MSPs today hit out at the security costs being picked up by taxpayers.

Susie Squire, of the Taxpayers' Alliance, said: "This beggars belief. Sir Fred has had quite enough from taxpayers recently yet they are also expected to pick up the cost of his security arrangements.

"Sir Fred Goodwin is clearly a wealthy man and if he feels he needs additional security measures to protect him and his family then he has the means to pay for that himself. There is no reason for taxpayers to foot the bill."

Sir Fred earned around 30m during his time at RBS. And although he waived a 1.2m payoff when he left the firm last month, the Paisley-born banker still walked away with a pension pot worth an additional 8.4m.

Sir Fred has come under fire for RBS's record losses and for the bank overpaying by up to 20 billion for Dutch bank ABN Amro during a troubled takeover.

Independent Lothians MSP Margo MacDonald said: "I'm afraid this is not that surprising given all the revelations we've had in recent months, and unfortunately it is more salt being rubbed into an open wound.

"Whoever did the negotiations for his leaving package should be signed up by the unions as they will need someone with these skills to try and salvage something from all of this mess for the thousands of ordinary bank workers."

Sir Fred and his family have been under siege from the media since his departure from RBS. The 51-year-old has hired a public relations consultant to address some of the damage to his reputation.

A spokeswoman for RBS said: "It is our normal policy to offer the option of this service to board members for a few months following their departure."