HSBC accused of omissions in sacking of banker

LONDON, Mar 11 (Reuters) Leading international bank HSBC left out key facts at a disciplinary hearing that led to the sacking of a senior banker accused of sexual harassment, a British employment tribunal was told on Friday.

Peter Lewis, formerly head of HSBC's global equity trading business, is claiming unfair dismissal and compensation of about 5 million pounds, saying he was sacked because he was gay.

He denies the sexual harassment incident occurred. HSBC denies discrimination on sexual orientation or other grounds.

Lewis's lawyer Chris Quinn said omissions over the alleged incident had cast doubt on whether HSBC could have conducted its disciplinary process fairly.

The colleague who accused Lewis of sexual harassment, and is not being identified for legal reasons, had told HSBC he was not upset by the incident, which is alleged to have taken place in a gym shower in 2004, said Quinn.

He said according to a report compiled by the gym that was not passed on to the HSBC human resources manager handling Lewis's disciplinary case, the colleague -- referred to as Mr. A -- was also seen later laughing about the matter.

SHOWER CUBICLE Mr. A had said Lewis, 45, had masturbated in a shower cubicle next to him and looked at him in a way which made him feel uncomfortable.

He said Lewis, while still naked and with an erect penis, had stared at him for about a minute.

Quinn said this was implausible and asked the court to pause for a minute to illustrate his point.

''That must have been one of the strangest minutes of all time ... that there was no attempt by Mr. A to remove himself from the vicinity of a naked man with an erect penis,'' said Quinn.

During initial investigations, Mr. A told Natalie Hattrell, a human resources manager investigating the case, that he was not upset by what had happened.

''If (Lewis) is not disciplined, it is no real skin off my nose,'' Mr. A told Hattrell.

Hattrell did not include these comments in her report for a disciplinary procedure against Lewis that ultimately cost him his job.

''I'm not sure why (the comments) were not made available,'' Hattrell said when questioned by Quinn.

Lewis has said he secretly filmed his disciplinary hearing because he wanted an accurate record as he thought HSBC's reports on his case were being amended.

Quinn suggested Hattrell, who had been at HSBC for about three-and-a-half years, lacked experience to handle such a case.

He said Mr. A had called Lewis a nonce and asked why HSBC had not been taken issue with him for such offensive language.

Hattrell told the tribunal Mr. A had used the term but she had thought it was a slang word for homosexuals.

''The Oxford English Dictionary definition is a sexual deviant, especially a child molester,'' said Quinn.

Investment banks in London's City financial district have already faced a number of claims from women over discrimination and unfair treatment.

The tribunal hearing is set to run into the next week.

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