Category Archives: Reward for failure
Seven years ago, the Stirrer’s correspondent (The Spook) predicted that one day the powers that be will realise that services should be designed and managed by the ‘undoubted experts’ that exist within the council.
S/he explained that they would be more practical and less expensive than those designed by “by cavalier consultants and back room HR boffins who have no conception of delivering a service and are only concerned that “procedures” are followed and “statistics” are recorded, irrespective of how impractical and resource wasting this might be.
Yesterday the Financial Times predicted that Learndirect, a company owned by the private equity arm of Lloyds Bank, is at risk of collapse, following a report by Ofsted. This prompted a data search which revealed 2013-4 as vintage years for complaints about the performance and cost of outsourcing companies.
Last year a survey of 36 strategic public-private partnerships signed between 2000 and 2007 found that 13 of the contracts – ranging from 7 to 15 years and covering IT, back-office functions, property management and highways – have gone back in-house at the end of contract or as a result of early terminations. In more than a third of cases, councils found that delivering services in-house could save more than outsourcing to commercial companies in long-term, multi-service partnerships. A return to designing, staffing and over-seeing services in-house can improve performance, reduce costs and provide stable employment for local people at all levels, with money circulating in the area, instead of going to distant shareholders.
The New Statesman noted that many companies featured on their list of nine spectacular’ council outsourcing failures were said to be looking “excitedly” at the NHS – hoping for “heaps of public money, ditching service the second the contract is framed and delivering huge returns to their shareholders”. Its 2014 article opened:
“One of the many concepts that free marketeers refuse to abandon in the face of all evidence is the idea that the private sector is better at providing public services than the public sector. Private companies have been cashing in on this fable for years at council and government level. As we file this report, another glorious outsourcing triumph is breaking: the Ministry of Justice has asked police to investigate alleged fraudulent behaviour by Serco staff in its Prisoner Escort and Custodial Services contract”. An online search will reveal that this is one of many problems reported in different countries.
Punitive contract ‘get out’ clauses – real or imagined
The article also listed the amount councils have had to spend to get out of private sector contracts and/or to deal with contract disputes and cost overruns. Note Javelin Park – the Gloucester incinerator contract revelation.
Despite these concerns, four years ago Swindon council brought basic ‘commercial’ services such as waste collection, recycling, highways maintenance and grass cutting, back in-house in order to save an estimated £1.8m. Last year, because of performance problems, financial pressures and NHS policy shifts, Swindon also decided not to renew contract with social work provider SEQOL.
Birmingham City Council recently ended the Service Birmingham Joint Venture with Capita which provided the Council’s information technology, ran the council tax and business rates administration service. The process continues with its move to bring waste and recycling collection in-house.
With reference to Serco, G4S and others – Simon Chesterton goes deeper, beyond issues of cost and efficiency:
He asks (left) whether there should be any limits on government capacity to outsource traditionally “public” functions:
“Can and should a government put out to private tender the fulfilment of military, intelligence, and prison services?
Can and should it transfer control of utilities essential to life, such as the supply of water?”
This site has recorded many instances of rewards for ethical commercial or financial failures but the editor stopped searching at 29. A typical example filed two years ago starred Lin Homer and John Manzoni. Now political figures are coming to the fore. Number 30 was health minister Jeremy Hunt.
Four years after the first report we read of two further rewards for former MP Jacqui Smith, who lost her Redditch seat after incorrectly claiming expenses and was later appointed chair of University Hospitals Birmingham NHS Trust.
Edgbaston MP Gisela Stuart was quoted in the Birmingham Post at the time as saying “It looks to me as if we are rewarding failure and I have raised this with the Health Secretary”.
Earlier in July this year, Ms Smith was appointed by the Department for Education to chair the board of the new Sandwell Children’s Social Care Trust and – regrettably – today it is reported that she has now been elected Chairman of The Lunar Society.
What conclusions can the public draw?
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!
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.
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”.
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.
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.
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.
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.
Not for the first time, the Murdoch Times made a ‘throwaway remark’ into a headline ‘soundbite’. It centred on a passing reflection by David Miliband, a former foreign secretary in the Blair government, made in an interview in the Times.
Widely reported to be a great friend of the Clintons
Peter Burgess asks a pertinent question: “Why on earth do you think that the likes of Murdoch preferred him and Blair rather than the likes of Benn or Major? Of course the establishment and in particular people like Murdoch want Miliband Snr as Labour leader, just as they wanted Blair rather than Foot or a Tory like Major. They knew how to control him”.
Miliband said that the Labour party is now weaker than in the 1980s and must face up to the “historic nature” of the challenge ahead.
Hem Laljee refers to this as “the fallout from the New Labour. Its founder is still loitering in our midst and giving advice. New Labour was the different garb of the Conservative The working class have been left rudderless which reflected in their votes for the Brexit”.
David Miliband’s main theme was his own well-rewarded work for the USA’s International Rescue Committee. Asked about his future leadership intentions, he added: “I honestly don’t know what I’m going to do. It’s hard to see, but what’s the point of saying never?”
Radlon comments: “Rather standing his ground to save the Labour Party . . . he scarpered off to a well-paid US job. How would Labour’s traditional voters, not to mention the Dave Spart wing of the party, view this rich kid parachuting into the leadership of the party from 3000 miles away?2
Mr Corbyn said: “I was elected to lead this party. We will continue our campaigning work on the NHS, on social care, on housing.”
Another comment was that the political-corporate-media establishment must secretly think that Corbyn has quite a good chance of electoral success, despite their rhetoric, because they are spending so much time and devoting such great efforts to discredit him and his supporters.
Mary Robinson fails to mention the corruption and self-serving that has characterized the “elite global agenda”
Millions across the world feel that the current globalised system is not working in their best interests. From unemployed former steel workers in the US rust belt, to the small island states in the South Pacific where livelihoods are threatened by climate change, people are angry that decisions taken by governments and in corporate boardrooms appear blithely indifferent to their daily struggles. We know from history that crude populism offers no real solutions, creating only false hope and scapegoats. Yet it is also clear that there are many politicians who will cynically exploit genuine grievances for their own ends”.
She ended by calling on citizens across the globe to trust their best instincts and work together for justice, but thoughtful commentators pinpointed omissions which underlie the uneasy reaction of some readers (extracts follow, all links added).
John Bruce addresses Ms Robinson: “With immense respect the air in your ivory tower isn’t what the rest of us breathe”
This article epitomises the views of a human being with a great heart but so out of touch as not to begin to understand the realities of life as understood by those who voted Brexit, or for Trump, or who are, and will be, powering the whole ground swell of global discontent.
It is not about leadership per se, but its abuse in pursuing greed over decency and values
Simon elaborates: This tip of the hat to the discontent of the “Millions across the world” seems well intentioned. But Robinson fails to embrace the significant corruption and self-dealing that has characterized the “elite global agenda”.
Yes, in theory globalization offers much promise, but its idealistic promoters have inexcusably turned a blind eye to abuses, distortions and fraud in globalization’s execution. All too frequently, dissent has been brushed aside as populist ignorance.
Globalization’s idealistic leaders (The Elders?) have lost credibility precisely because they have failed to call out the “fellow traveler” profiteers in their own ranks, and likewise been cheerleaders to globalization’s stark imbalances.
John Bruce continues: One price of this has been consumerist capitalism – a policy to enrich the wealthy at the expense of the not so well.
The mechanism has been education to a belief that “I shop therefore I am” – all on the back of expensive debt to the individual, supplied at near zero cost by institutions which, in a free market, would no longer be in it.
That is the cause of disaffection and it threatens revolution. Corbyn is right 20/1 is a pay ratio the civilised world needs to adopt or, had we still been here, the future would have been a time of immense violence – politics by other means to get rid of the oppressive mortmain on the lives and aspirations of the many by the protected and privileged few. An elite whose leadership has long been to protect the status quo and vested interest. Not something anyone with the power to do anything wishes to change.
The deep entrenchment of such leadership, based on the comfortable misconception of its beneficiaries, that the answer to poverty is simply to make the rich richer and it will simply trickle down, has come to put humanity at risk never before faced.
The second price to be paid for consumerist capitalism is its carbon footprint
Nature has the capacity to re-cycle 280 – 300 ppm carbon pa (note Keeling). The system has been out of control since about 1980. Now, 40 years later and in absence of intervention – to make clean energy to put coal oil and gas out of business and convert current engines to run clean – we have no future.
It is, on the evidence, that stark. But just as the conventional wisdom was wrong in thinking the RMS Titanic couldn’t sink so today we no less deliberately deny ourselves the reality, preferring a delusion which allows us to think that by cutting carbon we can remain below 1.5C.
Bruce ends prophetically: “What drives our weather will set our destiny.”
Is that news to anyone?
This site and others have been focussing on this appalling phenomenon corrupting governance for years, so much so that corruption of politicians and supporting media is no longer shocking: it is the norm.
As such, frequent news of revolving doors and rewards for failure has been under-reported on this site of late – despite many significant leads from regular readers – because these items just repeat our view of the state of the nation.
However the ever-eloquent George Monbiot is more persistent
He explains: “Dark money is the term used in the US for the undisclosed funding of organisations involved in political advocacy. Few people would see a tobacco company as a credible source on public health, or a coal company as a neutral commentator on climate change. To advance their political interests, such companies must pay others to speak on their behalf”.
Though corporate America was horrified by some of Donald Trump’s positions, especially on trade, once he had secured the nomination, big money began to recognise an unprecedented opportunity.
Monbiot continues: “Trump was prepared not only to promote the cause of corporations in government, but to turn government into a kind of corporation, staffed and run by executives and lobbyists. His incoherence was not a liability but an opening: his agenda could be shaped. And the dark money network that some American corporations had already developed was perfectly positioned to shape it”.
He looks into the historical background:
“Soon after the Second World War, some of America’s richest people began setting up a network of thinktanks to promote their interests. These purport to offer dispassionate opinions on public affairs. But they are more like corporate lobbyists, working on behalf of those who founded and fund them.
“These are the organisations now running much of the Trump administration”.
He then relates the story of MP Liam Fox
In 1997, Liam Fox founded an organisation called The Atlantic Bridge. Its patron was Margaret Thatcher. On its advisory council sat the future cabinet ministers Michael Gove, George Osborne, William Hague and Chris Grayling. Fox, who became a leading campaigner for Brexit, described the mission of The Atlantic Bridge as “to bring people together who have common interests”. It would defend these interests from “European integrationists who would like to pull Britain away from its relationship with the United States”. The Atlantic Bridge (link no longer informative) was later registered as a charity – only after it collapsed did the full story of who had funded it emerge.
Read the tedious and depressing details in the Guardian or on this site here.
How did Fox achieve this position, after the scandal that brought him down six years ago? Monbiot explains: “The man who ran the UK branch of The Atlantic Bridge was his friend Adam Werrity, who . . . carried a business card naming him as Fox’s adviser but was never employed by the Ministry of Defence, joined the secretary of state on numerous ministerial visits overseas, and made frequent visits to Fox’s office”.
The Charity Commission investigated The Atlantic Bridge and determined that its work didn’t look very charitable. It had to pay back the tax from which it had been exempted (Hintze picked up the bill) and the trustees shut the organisation down. Monbiot continues; “As the story about Adam Werrity’s unauthorised involvement in the business of government began to grow, Fox made a number of misleading statements. He was left with no choice but to resign”.
As the Financial Times reported, the election of Donald Trump transformed the fortunes of Liam Fox: he is back on the front bench, with a crucial and sensitive portfolio – Secretary of State for International Trade – an indispensable member of Theresa May’s front bench team: “The shadow diplomatic mission he developed through The Atlantic Bridge plugs him straight into the Trump administration”.
Taking back control from Europe means closer integration with the US
Monbiot adds that European laws protecting the public interest were portrayed by Conservative Eurosceptics as intolerable intrusions on corporate freedom and the transatlantic ‘special relationship’ is a relationship between political and corporate power. He ends with the following warning, sent by President Franklin Roosevelt in 1938 to the US Congress:
“The liberty of a democracy is not safe if the people tolerate the growth of private power to a point where it becomes stronger than their democratic state itself. That, in its essence, is fascism”.
Monbiot adds “It is a warning we would do well to remember”.
Impressive new entrance (Winson Green) and corporate/political rhetoric: fearful reality
After a series of violent incidents in recent months at HMP Lewes and HMP Bedford, four wings at HMP Birmingham in high-security Winson Green, had to be sealed after disturbances broke out. About 260 prisoners were involved.
Despite the record of G4S, which now runs five prisons in the UK, management of this prison was handed over to the private sector company in 2011. Unions opposed the deal which reduced staff numbers and pay rates.
So many public sector officers had to be drafted to ‘manage’ the Winson Green ‘dispute’ that control had to be transferred to the public sector HM Prison Service.
There have been sharp cuts to prison staff numbers as part of the 2010-15 coalition’s austerity drive even though the prison population has doubled since 1993 to more than 85,000. There are now 65 assaults behind bars every day and in the year to June, assaults on staff jumped 43% to 5,954, with 697 recorded as serious.
Yesterday former Conservative Secretary of State for Justice Michael Gove appeared to have a change of heart. His words, reported in a recent speech, were: “I am convinced that we cannot provide the effective level of rehabilitation we need for offenders without either increasing expenditure significantly or reducing prisoner numbers overall, because overcrowded prisons are more likely to be academies of crime, brutalisers of the innocent and incubators of addiction rather than engines of self-improvement.”
“And the children of Iraq, in their graves, disabled, cancer ridden from DU weapons, disabled, deformed, homeless, displaced, Mr Blair?”
Blair’s Grand Delusion: “Whom the gods would destroy, they first make mad”
Tony Blair has announced plans to set up a new centre-ground institute to combat the “new populism of left and right”.
This new body would provide answers to anti-business and anti-immigrant views which share a “closed-minded approach to globalisation”.
In a characteristically self-congratulatory statement published on his website, he said his new not-for-profit organisation would deliver policies based on evidence rather than the “plague” of social media abuse.
It would be a response to the political shocks of the last year, such as Brexit and the election of Donald Trump to the US presidency.
It aims to support practising politicians – such worthies as John Mann, Jess Philips, Simon Danczuk and those former colleagues still waving the New Labour flag?
He ends: “I care about my country and the world my children and grandchildren will grow up in; and want to play at least a small part in contributing to the debate about the future of both.”
Felicity Arbuthnot asks, on behalf of millions: “And the children of Iraq, in their graves, disabled, cancer ridden from DU weapons, disabled, deformed, homeless, displaced, Mr Blair?”
What could be more extremist than Blair’s deadly collusion in that country’s destruction?