Goldman Rejects Demand From BHS Probe MPs

Wall Street's most powerful investment bank has rejected a demand from MPs probing the collapse of BHS that would drag its executives deeper into their inquiry.

Sky News has learnt that Goldman Sachs (NYSE: GS-PB - news) wrote on Friday to two House of Commons select committees to suggest that three senior bankers provide written evidence rather than appearing in person.

Goldman's letter is understood to rebut a number of assertions made by Dominic Chappell, BHS' former owner, when he gave evidence during a stormy hearing this week.

The bank's response to the MPs came days before Sir Philip Green - the tycoon who sold BHS to Mr Chappell's consortium, Retail Acquisitions, last year - is due to give evidence.

Sir Philip's willingness to appear before the inquiry was thrown into doubt, however, when he issued a statement demanding the resignation from the inquiry of Frank Field, the Labour MP who chairs the Work and Pensions Committee.

The TopShop billionaire was responding to comments by Mr Field that he should offer at least £600m to plug the deficit in BHS' pension schemes.

"I am not prepared to participate in a process which has not even the pretence of fairness and objectivity and which has as its primary objective the destruction of my reputation," Sir Philip ‎wrote.

"I therefore require you to resign immediately from this inquiry.

"You are not the Pensions Regulator and you have no power over the Pensions Regulator.

"Anything to do with the resolution of the BHS pension issues is in their jurisdiction and not yours, and your continued participation in the inquiry will serve only to obstruct a resolution."

Frank Field MP responded: "We appreciate that Sir Philip is trying to set up a deal for the pension fund, but £600m is the size of the deficit. That's not jumping to any conclusion, that is a fact. We very much look forward to hearing his side of the story on Wednesday."

The committees issued a list of witnesses on Thursday who they intend to invite to give evidence at the end of the month.

They include Brett Palos, Sir Philip's stepson, the wealthy rag-trader and restaurateur Richard Caring, and the Sports Direct tycoon Mike Ashley, who held talks about a rescue of BHS before it collapsed into administration in April, threatening 11,000 jobs.

The MPs also said they would recall Anthony Gutman, a Goldman executive who was peripherally involved in the sale to RAL, and invite Michael Sherwood, the bank's top European executive and a long-standing friend of Sir Philip, and Michael Casey, another of the firm's deal bankers.

However, Goldman is understood to have told the MPs that it has already provided a full account of its involvement in the sale of BHS, including a detailed log of its interactions with the deal's protagonists.

A source said the bank had co-operated with MPs since the launch of the inquiry, offering comprehensive disclosure about its role.

In its letter, the Wall Street firm is said to have denied Mr Chappell's claim that he met Mr Gutman "two or three times", and that Farallon Capital, a hedge fund lined up to finance the deal, had also met with the Goldman banker.

Goldman, which was not paid for its role on the sale of BHS, is also understood to have said that Mr Chappell's evidence was incorrect in a number of other areas, including Farallon's level of commitment to the deal.

Farallon did not pursue an involvement in the takeover because it felt that Mr Chappell, who was accused this week of threatening to kill the chief executive of BHS in a row over money, had misled it about the retailer's pension schemes.

Mr Chappell's evidence has also been challenged by other parties, including the administrators to BHS.

Sources said that Goldman‎ and other prospective witnesses had yet to receive formal invitations from the committees.

MPs have already agreed that Mr Ashley can provide evidence in writing, which implies they may be prepared to take a similar approach with other parties.

Goldman declined to comment ‎on Saturday.