Uncharitable act

The recent decision of Lloyds Banking Group to terminate its covenant with the Lloyds TSB Foundation for Scotland (your report, 25 February) has come as a great shock to the Scottish charity sector. Over the past 25 years the LTFS has served the charity sector in Scotland with great distinction and has stayed true to the humanitarian values of its founder, the Rev Henry Duncan.

He sought to relieve the suffering of his underprivileged parishioners by setting up a savings bank which grew to become the Trustee Savings Bank (TSB).

What is of most concern is the unfair treatment suffered by the foundation (LTFS) at the hands of the group (LBG), when the main concern of LTFS was the protection of its revenue and independence, and where LBG refused even to consider a compromise. This shameful treatment of the foundation has been compounded by the group's decision not to accept the unanimous decision of the foundation's trustees to reappoint their current chairman, Christine Lenihan. This is surely an attack on the independence of any organisation.

However, it is rather surprising that the group has now taken a unilateral decision to issue a notice of termination of the covenant it signed with the foundation following the flotation of the TSB. This goes against the very spirit of the dialogue between the government and the LBG over the past four months. We were of the impression that the imminent result of this would be a compromise.

DR MOZAMMEL HUQ

Chairman, Charity Education International

Napiershall Street

Glasgow