Bailout bank holds 'secret champagne junket' for staff
A bank due to receive billions of pounds in a British government bail-out has today defended its decision to hold an exclusive party for staff.
The Royal Bank of Scotland (RBS) will take the handout as it struggles with the fallout from the financial crisis.
But despite the ongoing credit crunch, it was reported that a “secret champagne junket” was held for RBS staff in Edinburgh over the weekend, costing around £300,000 (€367,474).
The bank today refused to give an exact figure for the cost of the party, insisting that the event was held to reward frontline staff.
The event for around 40 employees and 30 partners from the lender’s Bancassurance department was held at the company’s Edinburgh headquarters, with some guests being put up in a city hotel.
Details of the party were shrouded in secrecy prior to the event with the original venue changed in favour of the bank’s Edinburgh base which was felt to be “more appropriate”.
An RBS spokeswoman said the price of the party was less than had been reported.
She said: “This was an event that took place on our own premises for a small number of staff, a few of whom were accommodated overnight in a hotel.
“The event was held to recognise outstanding performance in delivering excellent service to our customers.”
Lender HBOS also held an event for staff in Edinburgh during the weekend.
It was reported that thousands of pounds had also been spent on their party.
However, HBOS today refused to say how much the event had cost and insisted a “prudent approach” had been made in terms of costing.
A spokeswoman said: “This was a key event for our frontline customer service colleagues – to recognise their achievements.
“These colleagues are chosen through compliments from customers as well as colleagues... it is for delivering the most exceptional levels of service.”
She added: “This event is to thank top performers for customer service excellence and to thank them for tremendous work in what has been a challenging year for everybody.
“In terms of costs, I can confirm that in organising a modest and prudent approach was adopted.
“This event was booked and paid for last year and colleagues have been nominated each month to attend.”
