Statement from The Co-operative Group in response to Sir Christopher Kelly's report

April 30, 2014

The Co-operative Group today welcomed the report by Sir Christopher Kelly, jointly commissioned by The Co-operative Group and The Co-operative Bank in July last year. Sir Christopher’s independent review covered the events that led to the announcement of The Co-operative Bank’s capital action plan to address a £1.5bn capital shortfall.

Richard Pennycook, Interim Group Chief Executive of The Co-operative Group, said:

“Following the wake-up call of our recently announced £2.5bn loss, Sir Christopher Kelly's report today lays bare the failings of management and governance that caused it. It is a sobering assessment which shows clearly that The Co-operative Group's loss of control of its Bank could have been avoided. The management that instigated this disaster for the Group are no longer in place; the flawed governance structure that failed to apply the right checks and balances, however, remains. Our colleagues, our members and our customers now look to the Group and Regional Boards to deliver the reforms which are so clearly necessary.”

Ursula Lidbetter, Chair of The Co-operative Group, said:

“Sir Christopher Kelly’s report serves as a stark reminder of the scale of change required in the governance of The Co-operative Group – something we have been clear we are already committed to. We thank him for his detailed and thorough work. The Group Board is leading the governance reform process and is putting a resolution containing four key principles to our membership next month. The Board awaits with keen interest the Governance Review to be published shortly by Lord Myners. Sir Christopher’s conclusions must strengthen our collective resolve, underlining as they do the urgency of the need for far-reaching fundamental change. We must ensure the mistakes of the past are never again repeated.”

For further information please contact:

Russ Brady
The Co-operative Group
Tel: 07880 784442
Susanna Voyle
Jonathan Sibun
Tulchan Communications
Tel: 020 7353 4200