(Credit: George Iordanov-Nalbantov)

Former high court judge Dame Linda Dobbs, who was appointed in 2017 to investigate Lloyds Banking Group’s alleged cover-up of the scam, has been warned by critics that the protracted process benefits alleged perpetrators and prolongs victims’ suffering.

The fraud, involving HBOS bankers and consultants, resulted in the jailing of six people in 2017 and the ruin of numerous businesses.

The inquiry’s delays have been attributed to its complexity and lack of power to compel witnesses. Evidence-gathering and interviews are nearing completion and drafting has begun, The Times reports.

Anthony Stansfeld, former police and crime commissioner for Thames Valley Police, which investigated the case, said: “I don’t doubt that this is a very challenging piece of work, but there can be no excuse for the enormous amount of time this has taken.

“Dame Linda is providing a gift to those who may be criticised in her findings, including the bank, by allowing this case to be categorised as ancient history by the time she finally publishes. Sadly, it remains very much alive in the minds of the victims and their families. Dame Linda is letting them down.”

Mark Brown, general secretary at BTU, an independent trade union for Lloyds Group staff, added: “It is becoming a joke and the risk is that many people linked to the scandal will have died by the time this emerges. A lot of the executives involved have gone, collecting their money and they have their pensions.”

Ms Dobbs said she acknowledges victims’ concerns but insists she must “conduct a comprehensive inquiry and reach robust conclusions”.

A Lloyds spokesperson said the bank could not comment on the ongoing investigation but that it will “continue to provide every assistance the review requires”.

The spokesperson added: “We remain extremely sorry and have publicly apologised to all the customers who were impacted. Our intention has always been to provide fair and generous compensation.”