Key NatWest Three witness found dead

By Justin Davenport
Updated: 11:01 EDT, 12 July 2006

A KEY witness in the case of the NatWest Three has been found dead. The dramatic development comes on the eve of the extradition to the US of the three British bankers.

The body of Neil Coulbeck, 53, a former director of NatWest's stockbroking arm, was found in Epping Forest, Chingford, yesterday. There were reports that he had been hanging from a tree.

The Natwest Three - David Bermingham, Gary Mulgrew and Giles Darby - are accused of an £11m fraud involving collapsed US energy giant Enron, whose former boss died at his home last week.

Told of Mr Coulbeck's death today, Mr Bermingham said: 'It's absolutely terrifying. This has just gone to a completely new level.'

Mr Coulbeck, who returned to Britain from the United States in 2001 to take up the role of head of group treasury for the Royal Bank of Scotland, had been interviewed by the FBI in connection with the case.

The body was discovered by a dog walker at around midday yesterday, a week after he had been reported missing by his wife.

She told police he had left his home in Woodford Green telling her, 'I am going for a walk', but he never returned.

The scene, between a golf course and a wood less than a mile from Mr Coulbeck's home, is cordoned off as forensic officers search the area.

Scotland Yard said detectives from its homicide investigation unit had launched an inquiry under the direction of a superintendent.

A spokesman said: 'The death is being treated as unexplained at this early stage.' But sources say it appears he committed suicide.

The body was decomposed indicating that he may have died shortly after he disappeared from his house on 6 July.

Initial reports said he was found hanging from a tree. Police said today the body was on the ground in woodland when they arrived.

Mr Coulbeck's family said they did not have a statement to make today. He is understood to have two children.

The NatWest Three will be extradited tomorrow to stand trial in Houston-where Enron was based. They have protest their innocence of fraud charges all along and claim there is not enough evidence against them to bring a trial in this country.

But the Government is handing them over under a controversial deal with the US.

The Act under which they are being extradited, originally intended to fight terrorism, allows British citizens to be extradited to the US without American courts having to provide a case for them to answer.

Lib-Dem home affairs spokesman Nick Clegg said: 'People simply do not understand why three British citizens will be extradited when our own judicial authorities saw no reason to prosecute them here in Britain.'

Hours before he was told of Mr Coulbeck's death Mr Bermingham told reporters of the similarities he saw between his case and that of Dr David Kelly, the UN weapons expert who killed himself three years ago.

He said: 'The Attorney General has finally done a David Kelly and started briefing against us. I am staggered that it has taken them so long. They have finally broken cover and started throwing mud at us from all directions.'

Mr Bermingham said he did not know who the witness was, only that four people had been interviewed by the FBI.

He said: 'What has happened to us pales into insignificance when compared with what his wife will have to live through. It's shocking, absolutely shocking.'

The Yard said their investigation was being led by the Homicide and Serious Crime Command because of their 'resources and expertise'.

It went on: 'We can confirm that officers from Redbridge Missing Persons Unit were contacted last Thursday regarding a man missing from his home address in Woodford Green. It is not yet established if the deceased is connected to this report.

'We believe they know the identity of the man but detailed inquiries are ongoing to confirm this. We are not in a position to discuss further.'