Harrods is investigating whether any of its current staff were “directly or indirectly involved” in the alleged sexual abuse of women by its former owner Mohamed Al Fayed.
With more than 100 women having come forward to allege being raped or assaulted by the Egyptian tycoon, the luxury store said it had launched a review and was in direct contact with Scotland Yard.
Victims have called for key staff and associates of Fayed, who died at the age of 94 last year, to reveal what they knew of the alleged abuse, which is said to have stretched over a number of decades.
Harrods said in a statement: “As part of our due diligence there is an ongoing internal review (supported by external counsel) including looking at whether any current staff were involved in any of the allegations either directly or indirectly.
“In addition, the Harrods board has established a non-executive committee of the board to further consider the issues arising from the allegations. Harrods is also in direct communication with the Metropolitan police to ensure we are offering our assistance with any of their relevant inquiries.”
The development came as lawyers representing women who have accused of Fayed of crimes including rape described a redress scheme set up by Harrods as an attempted “whitewash”.
The store published a statement last Friday in which it condemned “the actions of an individual who was intent on abusing his power” and encouraged women to come forward to it so that it could “settle claims in the quickest way possible”.
Bruce Drummond, a barrister at the New Bailey chambers acting for the Justice for Harrods Survivors group, said he had concerns over the attempt to directly liaise with victims, and pointed out that the store’s current managing director, Michael Ward, was appointed by Fayed in 2005.
He said: “Michael Ward should be clear on what he knew when and should have nothing to do with liaising with victims today.
“It’s a complete conflict of interest for Harrods to say they have an internal process in place to deal with this scandal. They have known for years about the systematic abuse that took place and only chose to half-heartedly act when they knew the accusations were going to be made public.
“Harrods cannot be marking their own homework. They are trying to whitewash this whole process. If they are serious about righting the wrongs of the past they should provide the survivors with independent counsel.”
Ward, 68, was appointed by Fayed in 2005 after previous roles as managing director of Lloyds Chemists and as a partner at the private equity firm Apax.
He told an interviewer on 2020 that he had spent “many happy years with Mohamed”, adding that he “saw my ability to create wealth for him”.
He continued in his role after Fayed sold the business to the Qatar Investment Authority for £1.5bn in 2010. He is believed to be the most highly paid director at Harrods, receiving £2.1m last year, down from £2.3m the previous year. In an interview in 2017, he described his greatest extravagances as “cars, boats and houses”.
It is understood that Ward will not play any role in the settlement scheme. There is no suggestion he was involved in any of the allegations made against Fayed.
Harrods said: “The Harrods settlement process was designed in consultation with independent external counsel and experts in personal injury litigation. All claims settled to date and moving forwards will be based on the guidance of these external individuals to ensure swift and impartial outcomes for the victims.”
Barristers announced their intention last Friday to bring a civil case against Harrods, where they said a system was put in place to protect Fayed during his decades of abuse.
Harrods said in response that it was “utterly appalled by the allegations of abuse perpetrated by Mohamed Al Fayed”, adding that “during this time as a business we failed our employees who were his victims and for this we sincerely apologise”.
The store went on to claim that “the Harrods of today is a very different organisation to the one owned and controlled by Fayed between 1985 and 2010; it is one that seeks to put the welfare of our employees at the heart of everything we do.”
The company said it had sought since last year, when it claimed new evidence had emerged, to “settle claims in the quickest way possible, avoiding lengthy legal proceedings for the women involved”.
It is understood that Harrods has settled a number of cases in the last 18 months and that it has not sought non-disclosure agreements (NDAs).
During Fayed’s time a number of settlements were made with NDAs, but the store is not expected to enforce the terms of those agreements.
One alleged victim of Fayed’s, named only as Joan, who is being represented by Leigh Day, said she believed there should also be a public inquiry into the failure to stop Fayed.
Joan said: “I note the admission by Harrods that it failed its employees and is setting up a scheme to compensate survivors. Although compensation is one important element of accountability, for decades it was money that enabled Al Fayed’s trafficking. Money alone cannot fix it.
“The abuse suffered by those that worked at Harrods carried on for years and involved others including security and human resources personnel, medical professionals, and others. Mohamed Al Fayed died without being brought to account, but there still must be accountability and justice to help ensure that this cannot happen again.”
