Category Archives: Civil servants

Broken Britain 16: HMRC refuses to investigate money-laundering and tax fraud charges by largest Conservative donor

Three classes of British looting: which is the most culpable?

Professor Prem Sikka, Professor of Accounting at University of Sheffield and Emeritus Professor of Accounting at University of Essex, draws attention to the case of the UK telecoms giant Lycamobile, the biggest donor to the Conservative Party, which has accepted £2.2m in donations since 2011.

Her Majesty’s Revenue and Customs (HMRC) has refused to assist the French authorities and raid Lycamobile’s UK premises in order to investigate suspected money laundering and tax fraud.

Economia, the publication for members of the Institute of Chartered Accountants in England and Wales (ICAEW) which covers news and analysis on the essential issues in business, finance and accountancy, reports:

Following an initial denial (left, Financial Times), Economia confirmed that in an official response to the French government dated 30 March 2017,  a HMRC official noted that Lycamobile is “a large multinational company” with “vast assets at their disposal” and would be “extremely unlikely to agree to having their premises searched”, said the report.

The letter from HMRC to the French government added, “It is of note that they are the biggest corporate donor to the Conservative party led by Prime Minister Theresa May and donated 1.25m Euros to the Prince Charles Trust in 2012”.

This is an ongoing saga: in 2016 Economia noted: “The Tories have come under fire for continuing to accept donations of more than £870,000 from Lycamobile since December, while it was being investigated for tax fraud and money laundering”.

In 2016 In May it emerged that KPMG’s audit of Lycamobile was limited due to the complex nature of the company’s accounts. Later, KPMG resigned saying it was unable to obtain “all the information and explanations from the company that we consider necessary for the purpose of our audit”.

HMRC: “has become a state within a state”.

Prem Sikka (right) continues, “The House of Commons Treasury Committee is demanding answers to the Lycamobile episode – but HMRC is unlikely to prove amenable”.

In recent years, the Public Accounts Committee has conducted hearings into tax avoidance by giant global corporations such as Microsoft, Amazon, Google, Starbucks, Shire and others. The hearings have not been followed by HMRC test cases.

The Public Accounts Committee has also held hearings into the role of the large accountancy firms in designing and marketing avoidance schemes and exposed their predatory culture. In a telling rebuke to PricewaterhouseCoopers, the Committee chair said: “You are offering schemes to your clients—knowingly marketing these schemes—where you have judged there is a 75% risk of it then being deemed unlawful. That is a shocking finding for me to be told by one of your tax officials.”

Despite the above and numerous court judgments declaring the tax avoidance schemes marketed by accountancy firms to be unlawful, not a single firm has been investigated, fined or prosecuted.

There are real concerns that HMRC is too sympathetic to large companies and wealthy elites.

A major reason for that is the ‘revolving door’, the colonisation of HMRC by big business and its discourses: its current board members include non-executive directors connected with British Airways, Mondi, Anglo American, Aviva, PricewaterhouseCoopers and Rolls Royce.

After a stint at HMRC many of the non-execs return to big business. Corporate sympathies are therefore not counterbalanced by the presence of ordinary taxpayers or individuals from SMEs and civil society.

Sikka ends: “In such an environment, it is all too easy to turn a Nelsonian eye on corporate abuses and shower concessions on companies and wealthy individuals”. Read more here.

 

Why should we care?

Because tax revenue pays for the services used by all except the richest, the education health, transport and social services, increasingly impoverished by funding cuts imposed by the last two British governments.

The Shadow Chancellor has twice called for more rigorous examination and tightening of processes at HMRC to ensure that corporations and wealthy individuals are free from political corruption and pay fair rates of taxes.

Will the next government elected be for the many, not the few?

 

 

 

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Mr May: yet another example of the ‘cosy relationship’ between government and the arms industry

A Liverpool reader draws attention to the news that Philip May, husband of the UK prime minister, works for Capital Group, the largest shareholder in arms manufacturer, BAE Systems, whose share price has soared since the recent airstrikes in Syria, employs. It is also the second-largest shareholder in Lockheed Martin – a US military arms firm that supplies weapons systems, aircraft and logistical support. Its shares have also rocketed since the missile strikes last week.

Selected evidence of the revolving doors between Whitehall appointments, their family and friends and the ‘defence’ industry in our archives, in chronological order:

Admiral Sir John Slater, the former first sea lord, left the military in 1998 and became a director and senior adviser to Lockheed Martin UK.

Michael Portillo, the secretary of state for defence from 1995 to 1997, became non-executive director of BAE Systems in 2002 before stepping down in 2006.

Lord Reid, secretary of state for defence from 2005 to 2006, said in 2008 that he had become group consultant to G4S, the security company that worked closely with the Ministry of Defence in Iraq.

Air Chief Marshal Sir Glenn Torpy, the chief of staff from 2006-2009, retired from the RAF last year and will become senior military adviser to BAE Systems in January.

Sir Kevin Tebbit, under-secretary at the MoD, became  chairman of Finmeccanica UK, owner of Westland helicopters in 2007 and has a variety of other defence related appointments.

Major-General Graham Binns left the military in 2010 and became chief executive of Aegis Defence Services, a leading security company.

David Gould, the former chief operating officer of the MoD’s procurement division, became chairman of Selex Systems, part of Finmeccanica in 2010.

Lady Taylor of Bolton was minister for defence equipment for a year until 2008 and became minister for international defence and security until Labour lost the general election in May.In 2010 she joined the arms contractor Thales, which is part of the consortium supplying two aircraft carriers that are £1.541bn over budget.

In 2010 Geoff Hoon, the ex-Defence Secretary caught attempting to sell his services to fake lobbyists back  alongside Stephen Byers. When he was an MP, military helicopter company AgustaWestland were awarded a billion-pound order. Now out of Parliament, Hoon earns his way as the company’s Vice-President of international business.

Andrew Tyler (above, right), the British Defence Ministry’s former procurement chief, became chief operating officer of Defence Equipment & Support (DE&S), responsible for the procurement and support of all the equipment used by the British Armed Forces. Siemens’ Marine Current Turbines unit appointed Andrew Tyler as acting CEO in 2011 and in 2012 he became the chief executive of Northrop Grumman’s UK & European operations; NG is a large American global aerospace and defence technology company. Above, still from a video made at a 2015 Defence and Security Equipment International (DSEI) arms fair

Then Business Secretary Vince Cable was one of 40 MPs on the guest list for a £250-a-head gathering in 2015 at the Hilton hotel on Park Lane. he gave a speech at the event organised by trade organisation ADS, the trade body for UK Aerospace, Defence, Security and Space industries arms fair..

Ministers were wined-and-dined in 2015 by the arms trade at a £450-a-head banquet on Tuesday night just hours after parliament’s International Development Committee said the UK should suspend all arms sales to Saudi Arabia.

In 2017, some of the senior politicians or members of their families lobbying for the nuclear industry were listed on this site (Powerbase source):

Three former Labour Energy Ministers (John Hutton, Helen Liddell, Brian Wilson)

Gordon Brown’s brother worked as head lobbyist for EDF

Jack Cunningham chaired Transatlantic Nuclear Energy Forum

Labour Minister Yvette Cooper’s dad was chair of nuclear lobbyists The Nuclear Industry Association.

Ed Davey, Lib Dem energy minister’s brother worked for a nuclear lobbyist. When failed to be re-elected went to work for the same nuclear lobbying firm as his brother.

Lord Clement Jones who was Nick Clegg’s General Election Party Treasurer was a nuclear industry lobbyist.

Tory Peer Lady Maitland is board member of nuclear lobbyist Sovereign Strategy.

Bernard Ingham, Mrs Thatcher’s press spokesperson, has been nuclear lobbyist for over 25 years.

Lord Jenkin was a paid consultant to nuclear industry.

MEP Giles Chichester is president of nuclear lobbyists EEF.

Concerns about the ‘cosy relationship between the government and the arms trade’ are expressed well by CAAT:

A disturbing number of senior officials, military staff and ministers have passed through the ‘revolving door’ to join arms and security companies. This process has helped to create the current cosy relationship between the government and the arms trade – with politicians and civil servants often acting in the interests of companies, not the interests of the public.

When these ‘revolvers’ leave public service for the arms trade, they take with them extensive contacts and privileged access. As current government decision-makers are willing to meet and listen to former Defence Ministers and ex-Generals, particularly if they used to work with them, this increases the arms trade’s already excessive influence over our government’s actions.

On top of this, there is the risk that government decision-makers will be reluctant to displease arms companies as this could ruin their chances of landing a lucrative arms industry job in the future.

 

Sources:

https://www.theguardian.com/politics/2010/dec/17/defence-minister-mod-overspend-ann-taylor

https://www.independent.co.uk/voices/comment/arms-trading-bae-systems-and-why-politicians-and-men-from-the-military-make-a-very-dubious-mix-8210897.html

https://politicalcleanup.wordpress.com/2013/05/05/the-revolving-door-from-the-ministry-of-defence-to-an-aerospace-and-defence-technology-company/

https://www.independent.co.uk/news/uk/politics/vince-cable-one-of-40-mps-on-guest-list-for-arms-dealers-dinner-in-london-10026302.html

https://www.independent.co.uk/news/uk/politics/ministers-wined-and-dined-by-arms-trade-hours-after-mps-demand-ban-on-selling-weapons-to-saudi-a6850751.html 2.16

https://politicalcleanup.wordpress.com/2017/06/23/revolving-doors-39-nao-calls-to-order-politicians-supporting-nuclear-power/

https://www.caat.org.uk/issues/influence/revolving-door

 

 

 

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Pensions at risk: are the Pensions Regulator & Pension Protection Fund fit for purpose?

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As Toys R Us seeks shelter in the Pension Protection Fund (PPF) for its deficit, following the dumping of pension scheme liabilities by Bernard Matthews (now under investigation by the Pensions Regulator), BHS and Carillion, *Professor Prem Sikka comments that too many companies are using a procedure known as “pre-pack administration” to sell-off a company’s assets for the benefit of shareholders, banks and private equity concerns, abandoning pension scheme deficits in the process.

There is a general concern that the pre-pack administrator, in agreeing to the pre-pack in consultation with the company’s management team (and usually its secured creditors), favours the interests of the managers and secured creditors ahead of those of the unsecured creditors. The speed and secrecy of the transaction often lead to a deal being executed, about which the unsecured creditors know nothing and offers them little or no return.

Bad management can plan for a prepack months in advance, line up an administrator – and then be back running the business immediately. It means when retailers fail they are often being kept with the same directors when it would be much healthier if new management arrived and with fresh money to invest (Nottingham Law School Journal, Peter Walton).

 

Last year, the FT reported that some 148 pension schemes with £3.8bn of liabilities have been offloaded into the Pension Protection Fund (PPF, header above) through pre-pack administrations and that directors, shareholders and bankers extracted an extra £3.8bn from companies by dishonouring the contracts with employees. Another 20 schemes were being assessed and the numbers are growing.

Some companies use pre-packs to extract high executive remuneration, returns for shareholders and dump the pension scheme liabilities with the knowledge that 90% of the pension deficit may be made good by the PPF. The PPF was established by the Pensions Act 2004 to rescue distressed pension schemes, but the amount of compensation received is less than a member would have been entitled to under the rules of their original pension scheme.

Professor Sikka advises that all companies with a pension scheme deficit be required to submit an annual plan to the Pension Regulator explaining how they seek to eliminate it and there should be a binding commitment to reduce the deficit. To this end:

  • All share buybacks, dividends and other forms of returns should be conditional on a plan to eliminate the pension scheme deficit.
  • This plan needs to be approved by the Pensions Regulator.
  • Each year the company should explain whether the previous promises to reduce the deficit have been delivered.
  • Whenever a company with a pension scheme deficit engages in a merger or takeover it should be required to seek approval from the Pensions Regulator.

And is the pensions regulator to blame for the Universities Superannuation Scheme crisis?

David Bailey, professor of industry at the Aston Business School in Birmingham and John Clancy, pensions analyst and former Leader of Birmingham City Council argue that the Pensions Regulator, not universities, is the driving force behind proposed cuts due to its nonsensical approach to discount rates.

Read their article in the Times Higher Education, which describes itself as the data provider underpinning university excellence in every continent across the world.

* Professor Prem Sikka, Professor of Accounting at University of Sheffield and Emeritus Professor of Accounting at University of Essex

 

 

 

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Rewards for failure: 33 – five government civil servants and an MP

Three of many reasons for Jeremy Corbyn’s popularity are his care for the ‘ordinary person’, his ‘sufficient’ lifestyle and his freedom from the greed which leads many in the political landscape to ‘milk’ the system and promote decisions needed by moneyed interests.

This graphic is about an MP who was, until May 2015, Justice Secretary and Lord Chancellor.

Attitudes to public expenditure

It was retweeted by a friend and in another article Greg Foxsmith neatly summarises: “Grayling is an MP who purports to want to cut public expenditure. However, when it comes to his own public expenditure, Chris likes to get as much of it as he can”. Foxsmith refers readers to the Telegraph for more information. Grayling’s record on cutting access to legal aid and lack of concern about prison suicides adds charges of inhumane conduct to those of greed.

Apart from passing through the revolving door to industry and then returning to aid government’s decision-making process, civil servants feature in the news less frequently than MPs.

Award-winning investigative journalist David Hencke recently re-published information about top bonuses and pay rises for five of the most senior and well paid civil servants at the Department of Work and Pensions over the last two years, which appears in the annual report and accounts of the DWP released last month.

The five civil servants named in Hencke’s article are Sir Robert Devereux, permanent secretary at the Department of Work and Pensions; Neil Couling, director general of universal credit; Jeremy Moore, director of strategy; Mayank Prakash, director general of digital technology and Andrew Rhodes, director of operations. All are responsible in one way or another for the delivery of Universal Credit.

All but Andrew Rhodes are paid more than Theresa May, the PM, but are, nevertheless, receiving bonuses

This, even though their new Universal Credit programme is said to be in chaos – leaving some claimants without money for up to six weeks. MP Kevan Jones (Durham North) has described the bonuses of £10-20,000 as “a reward for failure”, based on its performance in the Newcastle-upon-Tyne pilot project.

Catherine McKinnell, Labour MP for Newcastle North, said: “My office has been deluged with complaints from constituents about a Universal Credit system that is clearly struggling to cope and failing to deliver the support that claimants need in anything like an orderly or timely fashion. She reveals a very sorry picture. The new IT system means people can’t talk to a human. It has a verification process that requires claimants to produce photographic identification such as a passport or driving licence, “which many simply do not possess and certainly cannot afford”. There are numerous examples of Universal Credit claims being shut down before they should be; of documentation being provided to the DWP, at the constituent’s cost, and repeatedly being lost or even destroyed; and of totally conflicting, often incorrect, information being provided to constituents about their claims.” Precisely the case seen repeatedly 20 years ago when the writer was a volunteer in a local night-shelter.

In Civil Service World. Jawad Raza, of the FDA (the First Division Association) which represents the top civil service, said that the suggestion that these civil servants have been rewarded for failure shows a blatant disregard for the facts regarding their pay, and that highly skilled professionals working in challenging circumstances deserve to be adequately remunerated without having their names, faces (and incomes) spread across news pages – as they are in Hencke’s article.

All these pay rises were decided objectively by line managers, but the Department declined to say who these line managers are and which outside organisations and people recommended they should get bonuses. MP Kevan Jones plans to table a Parliamentary Question next month asking for this information.

Hencke ends, “What this shows to me is a growing disconnect between the people at the top – who are computer savvy, have nice centrally heated homes, no problems with bills, can afford expensive holidays, and can’t conceive of anyone not having a passport – designing a system for poor, dispossessed, desperate people without any understanding of how the world works for them.

“It was this disconnect between the elite and the poor in the USA that led to the rise of Donald Trump and I suspect this huge gulf between the Metropolitan elite (of which top Whitehall civil servants are part) and the provincial poor, is in the end going to propel Jeremy Corbyn into Downing Street”.

Will we see a new breed of politicians in such a government? A significant mass?

Many see the need for the number of MPs who have lived for the public good, even using their basic salaries to do this, such as former Coventry MP Dave Nellist, to increase to such an extent that they will be able to transform the country.

Breaking news:

Reminding the public that universities receive benefits from their charitable status and are required to disclose information about the basis on which salaries are calculated, former Labour education minister Andrew Adonis is campaigning for a reduction in the high salaries awarded to university vice-chancellors, which only increased following the introduction of tuition fees.

 

 

 

 

 

 

Broken Britain – 1

The corporate world continues its vitriolic but insubstantial attacks on the Labour Party leader whose approach threatens their unreasonably affluent lifestyles. Will increasingly media-sceptical people who seek the common good be affected by them?

In brief, the reference is to arms traders, big pharma, construction giants, energy companies owned by foreign governments, food speculators, the private ill-health industry and a range of polluting interests. Examples of the damaging political-corporate nexus are given here – a few of many recorded on our database:

Arms trade: Steve Beauchampé“A peacenik may lay down with some unsavoury characters. Better that than selling them weapons”.

The media highlights Corbyn’s handshakes and meetings, but not recent British governments’ collusion in repressive activities, issuing permits to supply weapons to dictators. In the 80s, when lobbying Conservative MP John Taylor about such arms exports, he said to the writer, word for word: “If we don’t do it, someone else will”. Meaning if we don’t help other countries to attack their citizens, others will. How low can we sink!

Big pharma

Reader Theresa drew our attention to an article highlighting the fact that the Specialised Healthcare Alliance (SHCA), a lobbying company working for some of the world’s biggest drugs and medical equipment firms, had written the draft report for NHS England, a government quango. This was when the latest attempt at mass-medication – this time with statins – was in the news.

Construction

Most construction entries related to the PFI debacle, but in 2009 it was reported that more than 100 construction companies – including Balfour Beatty, Kier Group and Carillion – had been involved in a price-fixing conspiracy and had to compensate local authority victims who had been excluded from billions of pounds of public works contracts. The Office of Fair Trading imposed £130m of fines on 103 companies. Price-fixing that had left the public and councils to “pick up the tab”.

Utilities

In Utility Week News, barrister Roger Barnard, former head of regulatory law at EDF Energy, wondered whether any government is able to safeguard the nation’s energy security interests against the potential for political intervention under a commercial guise, whether by Gazprom, OPEC, or a sovereign wealth fund. He added: “Despite what the regulators say, ownership matters”. The Office of Fair Trading was closed before it could update its little publicised 2010 report which recorded that 40% of infrastructure assets in the energy, water, transport, and communication sectors were already owned by foreign investors.

Food

A Lancashire farmer believes that supermarkets – powerful lobbyists and valued party funders – are driving out production of staple British food supplies and compromising our food security. She sees big business seeking to make a fortune from feeding the wealthy in distant foreign countries where the poor and the environment are both exploited. These ‘greedy giants’ are exploiting the poor across the world and putting at risk the livelihoods of hard working British farmers, their families and their communities. She adds that large businesses are gradually asset-stripping everything of value from our communities to make profits which are then invested abroad in places like China and Thailand.

Health-related

Government resistance to funding long-term out of work illness/disability benefits followed the publication of a monograph by the authors funded by America’s ‘corporate giant’ Unum Provident Insurance which influenced the policy of successive governments. After various freedom of information requests, the DWP published the mortality figures of the claimants who had died in 11 months in 2011 whilst claiming Employment and Support Allowance, with 10,600 people dying in total and 1300 people dying after being removed from the guaranteed monthly benefit, placed into the work related activity group regardless of diagnosis, forced to prepare for work and then died trying. Following the public outrage once the figures were published, the DWP have consistently refused to publish updated death totals. Information touched on in this 2015 article has been incorporated into a ResearchGate report identifying the influence of Unum Provident over successive UK governments since 1992, the influence of a former government Chief Medical Officer and the use of the Work Capability Assessments conducted by the private sector – described as state crime by proxy, justified as welfare reform.

Air pollution

The powerful transport lobby prevents or delays action to address air pollutants such as ground-level ozone and particulates emitted by cars, lorries and rail engines which contribute directly to global warming, linked to climate change. They emit some common air pollutants that have serious effects on human health and the environment. Children in areas exposed to air pollutants commonly suffer from pneumonia and asthma.

Victimised whistleblowers, media collusion, rewards for failure and the revolving door 

  • A recent whistleblower report records that Dr Raj Mattu is one of very few to be vindicated and compensated after years of suffering. The government does not implement its own allegedly strengthened whistleblower legislation to protect those who make ‘disclosures in the public interest’.
  • This media article relates to the mis-reporting of the Obama-Corbyn meeting: there are 57 others on this site.
  • Rewards for failure cover individual cases, most recently Lin Homer, and corporate instances: Serco and G4S were bidding for a MoD £400m 10-year deal, though they had been referred to the Serious Fraud Office for overcharging the government on electronic monitoring contracts. Another contender, Capita, according to a leaked report by research company Gartner was two years behind schedule with its MoD online recruitment computer system – yet the government had contracted to pay the company £1bn over 10 years to hire 9,000 soldiers a year for the army.
  • The 74th instance of the revolving door related to Andrew Lansley’s move from his position as government health minister to the private health sector. An investigation by the Mail found that one in three civil servants who took up lucrative private sector jobs was working in the Ministry of Defence: Last year 394 civil servants applied to sell their skills to the highest bidder – and 130 were MoD personnel. Paul Gosling describes how the Big Four accountancy firms have PFI ‘under their thumbs’ and gives a detailed list of those passing from government to the accountancy industry and vice versa.

Steve Beauchampé asks if the barrage of criticism apparently aimed at Jeremy Corbyn is more about undermining the politics he stands for which are probably less far to the left than those of many in the current government are to the right. Most political commentators and opponents aren’t worried that Labour will win a General Election under him, but they are alarmed that the movement his leadership has created might one day lead to an electable left winger.

 

 

 

 

Sharma and the Agri-Brigade: bureaucrats and white collar workers lacking all essential survival skills, undermine food producers

In England, many organisations ostensibly concerned with the prosperity of farmers hold endless conferences. Analyst Devinder Sharma notes that, in India, agricultural universities, research institutes, public sector units, and other organisations also frequently gather to talk about ways to improve farmers’ income.

india-seminar

He comments sardonically that while the number of seminars/conferences on doubling the farmers’ income have doubled in the past few months, farmers increasingly sink into a cycle of deprivation.

As he points out, in both countries those who talk of allowing markets to provide higher farm incomes are the ones who get assured salary packets every month – we add that in England some are even paid from a levy on farmers.

The British farming press is now pointing out that large numbers of the UK’s 86,000+ family farmers are facing a threat from the government’s new universal credit (UC). If administered as currently designed, it will have a devastating impact on many of the UK’s most economically vulnerable family farms.

Universal credit will be ‘rolled out’ regionally by the DWP to cover the whole of UK by 2022 – calculated on monthly rather than annual income and it will assume that farmers have a “minimum income floor” which assumes that all applicants earn a wage equivalent to the national minimum wage of about £230 a week which is not the case. Private Eye (The Agri Brigade column) comments:

“None of this is remotely appropriate for farmers, and it shows the folly of trying to introduce a single universal form of income support for all.

On many family farms, where one or two people may work up to 250 acres, there is often no income for up to 10 or even 1 I months in a typical trading year. The sale of a crop of lambs, cattle or grain (or receipt of an EU subsidy) means revenue is raised in just one or two months of the year so the DWP’s assumption of a “basic income floor” each month doesn’t apply. There are also fears that receipts by claimants that rake their income above the basic floor in some months will disrupt entitlement to UC in subsequent months. (And farming losses in some months cannot be offset against a profit in others)”

Shades of the I, Daniel Blake experience:

When the UC administered by the DWP comes into force, skilled hard-working farmers will have to visit unfamiliar Job Centres to register for the benefit. ln addition. They will have to undergo face-to-face interviews over their eligibility for UC and be allocated a work coach to advise them on how to improve their access to better paid employment. Given the difficulties it seems certain many family farms currently claiming tax credits (administered by HMRC) will not apply for universal credit despite their poverty.

An unworkable system

Farming UK reports that a spokesman for the Ulster Farmers Union said: “UC makes it impossible to use prospective incomes or losses, which is often what farmers depend on. The fact that farming is seasonal where there will be long periods of time when a farmer will make a loss in expectation of more profitable times at some other stage during the year. In addition, having to do monthly real-time accounts is an extra burden upon farmers, in an already hard-pressed industry, and to hire someone to prepare these accounts would be an extra expense”.

As the title has it:bureaucrats and white collar workers lacking all essential survival skills, undermine food producers”.

 

 

 

In the public domain now: revolving door, rewards for failure, media bias, lobbying and corporate party funding

revolving-door-peopleThe Political Concern website was set up seven years ago to raise awareness of the ‘revolving door’, rewards for failure, widespread behind-the-scene lobbying and party funding which corrupts the decision-making process here and abroad.

The social, economic and environmental challenges facing this country are still not being effectively addressed, largely due to the distortion of policy-making by those on ‘an inside track, largely drawn from the corporate world, who wield privileged access and disproportionate influence’ according to a report by the Parliamentary Public Administration Select Committee [PASC] in 2008].

However it is now common knowledge, with the growth of social media, that those on ‘the inside track, largely drawn from the corporate world, who wield privileged access and disproportionate influence’ are skewing decision making – so mission accomplished?

As the examples of this corruption are now accepted as the norm, after this post, individual examples of this practice need no longer be listed.

The ideal

adams-common-good

The reality

Our attention has been drawn to outsourcing company Capita’s recruitment of former PwC chairman and senior partner Ian Powell as its next chairman. Capita’s website rejoices in PwC’s interactions with the UK Government and other public sector organisations. PwC and others received large sums of public money from a range of government departments, as a FOI request from former Public Accounts Committee chair Margaret Hodge revealed.

Another reader noted that MP Andrew Mitchell has been recruited as consultant with Ernst & Young to mend fences after its record as auditor for Lehman Brothers and its fines for involvement with tax avoidance schemes. Expected remuneration: £30,000 a year for up to 5 days’ work.

The last example was the appointment of Peter Stephens as Nissan’s head of UK external and government affairs after serving as deputy director of the now merged Department for Business, Innovation and Skills (BIS) with responsibility for EU strategy. A year later, many questioned the way Nissan‘s Sunderland’s deal was arrived at, criticising the government for a lack of transparency but the National Audit Office saw no evidence that the government offered Nissan a ‘sweetheart deal’ to boost production figures.

The latest example of corporate party donations seen is a gift of £25,000 to the Conservatives from Entourage Concierge Ltd – ‘inspiring a proactive approach to luxury’ – not for the JAMs!

 

fit-to-rule-tests-atos

 

Enough!

 

 

 

Media 69: 2016- 2017, good years for burying bad news?

 david-hencke-2As journalist David Hencke reminds us:

“One of the oldest tricks in the Whitehall playbook is to use a major event as cover to publish unpalatable or embarrassing news.

“It means the media are diverted by the event and don’t notice the announcement or report”.

In his recent post Hencke noted that the Ministry of Defence and the Treasury use of the US elections to hide two bad news stories.

On the day before Trump‘s victory, the Ministry of Defence slipped in a very embarrassing announcement about war veterans pensions and disability payments (£438,193,000 in the Armed Forces Pensions and Compensation scheme) for which the Treasury had apparently not budgeted, commenting: “As a result they will have to raid the contingency reserve for emergency payments to make sure these veterans have the money”.

niaNia Griffith, the shadow Defence Secretary has warned the government that military veterans must be given an urgent reassurance that they will not lose money.

On ‘results day’, the National Audit Office’s less than glowing report on the new Defence Equipment and Support agency was released to the media. Though the agency was set up to address MoD cost overruns on equipment, bad spending decisions and lack of control, the NAO has qualified its accounts and made profound and widely based criticisms of its performance

On the day of publication, few noticed that Amyas Morse, the Comptroller and Auditor General, reported: “The DE&S has again been unable to provide sufficient evidence to support certain costs, or demonstrate that all costs it has incurred have been included in the financial statements. The C&AG has therefore limited the scope of his audit opinion . . . I believe this situation has arisen because the Agency’s financial management systems, processes and controls for these transactions and balances are not yet sufficiently well developed to meet the Agency’s needs.”

anne-marie-mpHencke also reports that Anne Marie Trevelyan, Conservative MP for Berwick on Tweed and a member of the Public Accounts Committee, said: “At a time when we are seeing a lot of change in the Ministry of Defence, causing a great deal of anxiety for those who are serving, it is very disappointing to see Defence Equipment & Support has not got to grips with financial management”.

 

 

See also Hencke’s news article for Tribune magazine.

It’s good to be able to say “Hats off to DEFRA”!

. . . if they continue to ‘reboot’ farm policy in favour of small family farms

“Not only do small family farms (defined as covering less than 250 acres and requiring the labour of one or two people) employ more people per acre and provide a wider variety of locally produced food than larger farms, but there is increasing evidence that they are less damaging to the environment.”

private-eye-logoThis passage in the latest Private Eye (1429) mentioned research findings published in a new state funded study carried out in the Netherlands and an online search added detail from the FT.

lidwien_smitDr Lidwien Smit, an environmental epidemiologist at Utrecht University, found that the biggest contribution to deaths linked with air pollution in Europe comes from agriculture, as risky to breathe as that in a traffic congested city.

She recommends that intensive farms in particular should be subjected to the same strict pollution rules as other industries. 

In September, the study was presented to the European Respiratory Society’s international congress in London. Professor Stephen Holgate, the society’s science council chair said that the findings underline the need for governments to take tougher action on farm pollution: “It raises a very important issue; there needs to be much better monitoring of intensive farming’s pollution plumes that spread out across the neighbourhood”.

farms-not-factories-tracy-logo

Private Eye reports that DEFRA is to use part of a £16m EU emergency dairy aid fund to help farmers ‘hit’ by very low milk prices to encourage grass-based farming systems.

The NFU, whose ‘lobby’ is often said to be dominated by large farmers that pay the biggest subscriptions) has, however, made ‘counter proposals’.

defra-logoThe farmer who writes for Private Eye, hopes – as we do – that DEFRA will ‘stick to its guns’ and also that all the UK’s regional governments and national assemblies will go on to make discrimination in favour of small-scale family farms central to farm policy in post-Brexit Britain.

First published on another site: https://foodvitalpublicservice.wordpress.com/2016/10/13/hats-off-to-defra-if-they-continue-to-reboot-farm-policy-in-favour-of-small-family-farms/

 

 

 

Revolving door 37 – confession time?

Recently Patrick Jenkins, Financial Editor of the FT, explored the history of the revolving door, saying that the practice of former politicians and central bankers seeking high paid work in financial services has a long pedigree, particularly in the US.

With apparent surprise – though it has been established practice in Britain involving senior politicians and corporates – he says. “Now it seems to be an accelerating trend in Europe”.

revolving-door-largerYet for the last six years sites such as Spinwatch, less directly Corporate Watch and the Private Eye magazine (see this article) – have highlighted this phenomenon. This Political Concern website was set up in 2010 to raise awareness of the ‘revolving door’, rewards for failure, widespread behind-the-scene lobbying and party funding which corrupts the decision-making process. A ‘media’ category was added later.

Patrick Jenkins’ article prompted the writer to count the articles on this website which have ‘revolving door’ in the title; there were 37 – but many more had incidental references and others added the graphic on the right. Jenkins writes:

“News that Lord King, the former governor of the Bank of England, has taken a key advisory role at Citigroup follows only weeks after it was announced that former European Commission president José Manuel Barroso would chair Goldman Sachs International. Rumours are growing, too, that senior members of the last UK government may follow a similar path, following in the footsteps of the previous Labour administration”.

After citing Tony Blair as ‘one of the most famous examples of the phenomenon to date’ and listing the many roles he has taken on in his post-politics career, Jenkins moved on to focus on central bankers and policy-makers switching from public service into the private sector and vice versa.

He ends: “Defenders of the practice say it helps break down barriers between financial services companies and policymakers, but critics think it can leave an unpleasant taste. “The potential is certainly there for conflicts of interest — both real and perceived,” says Bob Jenkins, who has worked as an asset manager, regulator and market reformist”. 

Brandon Patty, a young American politician, gets nearer the truth

brandon-pattyHe wrote in the FT yesterday, with reference to America, that the general public has zero confidence in . . . career bureaucrats, professional politicians looking out for our best interests:

“From immigration and trade deals, to excess regulations and scandals at far too many government departments, there is a very real sense that (the public’s) concerns and priorities do not matter to decision makers” adding that a September 2015 poll found 75% perceived corruption as widespread in the country’s government.

But will the shameless in Britain and America take the slightest notice of these commentators?