Why does this man keep secret the pay and perks for people running David Cameron’s taxpayer funded National Citizen Service scheme?

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Michael Lynas Chief Executive of the National Citizen’s Trust. Pic credit: Twitter

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This is Michael Lynas. So far he has spent £475m of taxpayer’s money as chief executive of the National Citizens Trust – a legacy project of David Cameron’s government aimed at providing community projects to aid character building  for 15 to 17 year olds across the nation.

His Linked In profile reveals that his sole qualifications  to do the job are a four year spell as a consultant for Bain and Company and just under three years in Downing Street as a policy adviser to David Cameron and Nick Clegg. He is obviously conventionally bright having studied at  Harvard and Cambridge.

Recently he appeared before MPs on the Commons Public Accounts Committee following a highly critical report from the National Audit Office questioning whether  National Citizen Service was value for money. The NAO pointed out that it was almost entirely funded by the state and the cost providing places on its schemes was very high. Also it has paid out money up front to organisations for places that were not taken up and was now trying to get the money back. I have written about this in Tribune magazine.

Indeed he was challenged by MPs about his ( lack of ) experience.This is the extract from the minutes:

Michael Lynas :”I have been involved in this now for eight years. I helped
to set up the first pilot. That is my ultimate experience. I have worked in
Government covering everything from the London 2012 Olympics to the same-sex marriage proposals when I was a senior policy adviser at No.10.
Chair ( Meg Hillier MP) : The same-sex marriage proposals, important as they were, are not quite the same things as running a contract with a big budget.
Michael Lynas: The Olympics had a large budget, obviously. When I was a management consultant for five years I looked at a whole range of projects, some of which were very large, but as I said, I have not managed something with this budget before.”

But the MPs were also concerned about the complete lack of transparency in declaring the salaries of directors -including himself- and senior staff  who are funded by the taxpayer. This is because  the trust was set up as a community interest company by David Cameron – so it did not have to disclose any details of the pay or perks  of directors or senior staff. Even though it was funded by you and me  –  the taxpayer.

MPs challenged him to publish the information and he agreed he could – but avoided pledging to do so. A flavour of the exchange can be seen here at the hearing.

Kevin Forster MP :”I have asked you if there is a legal bar to sharing that information and you have not said that there is.. .But you have said several times that you are waiting for the new Bill to go through. I accept that would be a new transition and structure but, if you want to sharei nformation and there is no legal bar to do doing so, and it relates to an
organisation that is taxpayer-funded, why don’t you do it?
Michael Lynas: I absolutely agree. I just thought it was a question about whether we did it under the auspices of the new arrangements or whether  we did it before then. We can do it before then.
Mr  Richard Bacon MP: This question of whether we do it under the old auspices or
the new arrangements: how profound is that question and how difficult to solve? Why does it matter? Why can’t you just do it, if it doesn’t make any difference? Are you familiar with the maxim, “Don’t ask for permission, ask for forgiveness”? Why don’t you just get on with it?”

An examination of the accounts and the original advertisement for the job of chief executive does reveal some information. Mr Lynas’s original job was advertised at £120,000 a year. The accounts reveal that in 2015 the highest paid director ( and he is also a director) received £117,688 a year and £5775 towards his pension. This increased by nearly £20,000 to £137,253 in 2016 and to £6343 towards his pension. We don’t know if that is him but it is very likely it is.

Total payments for directors increased by £45,000 in the same period from £466,608 to £511,182 whole pension contributions rose slightly from £23,025 ro £23,480.

Now there are 12 directors – eight are non-executive and four are executive – so you  might assume they share this between them. But you would be wrong because one of them, Lord David Blunkett, the former Labour home secretary, has had to declare what he gets in the House of Lords register of interests – even if the trust wants to keep it secret. And guess what, he is doing it pro bono – not claiming a penny salary for sitting on the board.

And I would be willing to bet the other seven- Dame Julia Cleverdon former chief executive of Business in the Community ; Pippa Dunn, Nick Farnhill, John Hartley, Sue Gray.,( Director of Propriety and Ethics at the Cabinet Office) Martina Milburn, ( head of the Princes Trust)  and Shaun Watling- may be in the same position.

These leaves another four executive directors to share the spoils ,Will Gallagher ( resigned last December);Doug Fraley ( resigned June 2015); Simon Jones ( resigned January 2016) and Natasha Kizzie in the previous financial year. Indeed the disappearance of so many executive directors seems to suggest another hidden story. Particularly since Will Gallagher was NCT’s chief operating officer and Simon Jones was NCT’s finance director. Natasha who is still in post is director of communications and marketing.

The accounts also reveal that in 2015 50 staff shared a £3 million wage bill. They are now over 100 staff.

The Trust will be forced to release information once  a bill  turning it into a public body goes through Parliament under Theresa May’s government.

I asked for the trust to release these figures now  and explain how much of the millions they lost on ” ghost places” they had recovered. I got no reply – no doubt Mr Lynas was too busy to be bothered by pesky journalists.

But I might say when the public sector ( especially education) is being squeezed by cuts and wage freezes – the largesse shown  to a few here is out of proportion. Unless of  course the former PM arranged ” mates rates” for the privileged few so they could help the underprivileged masses understand their role in society.

 

 

 

Thames Water: Unfit to protect our environment

 

Sewage around Marlow pc credit Environment Agency

Raw Sewage and foam around sailing boats on the Thames. pic credit: Environment Agency

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The record £20m fine for  Thames Water’s multiple pollution of the River Thames and its tributaries  with over 1.4 billion tonnes of untreated sewage shows  how badly the company was managed.

It makes the incident where the company polluted the Wendover Arm of the Grand Union Canal seem small fry compared to the damage the company caused to humans, livestock. wildife and fish across Hertfordshire,Buckinghamshire, Berkshire  and Oxfordshire.

Thames Water admitted 13 breaches of environmental laws over discharges from sewage treatment works in Aylesbury, Didcot, Henley and Little Marlow, and a pumping station at Littlemore.

It also pleaded guilty to a further charge on March 17 over a lesser discharge from an unmanned sewage treatment plant at Arborfield in Berkshire in September 2013.

The court at Aylesbury also took into account seven further incidents at sewage sites on the Thames in 2014.

thames waterWhat was extraordinary was the lax attitude of  top managers who ignored warnings from staff about failures in the system

 No wonder the judge Francis Sheridan said: “This is a shocking and disgraceful state of affairs. It should not be cheaper to offend than take appropriate action.”

He added: “What a dreadful state of affairs that is.

“Logbook entries reflected the pathetic state of affairs and the frustration of employees.

“Thames Water utilities continually failed to report to the Environment Agency despite (managers) being fully aware of the issues and reporting governance.”

He later said of the firm: “There is a history of non-compliance.”

Anne Brosnan, the Environment Agency’s chief prosecutor, said in The Guardian: “Thames Water was completely negligent to the environmental dangers created by the parlous state of its works. Our investigation revealed that we were dealing with a pattern of unprecedented pollution incidents which could have been avoided if Thames Water had been open and frank with the EA as required.”

But should  we be surprised? Thames Water is a remote multinational making huge profits – and a £20m fine – large as it is – will still hardly dent a £742m annual profit.It is also only a quarter of the annual dividend paid to investors.

And it’s owners include Kuwaitis, the Chinese, Canadians and other international foreign investors . What will they care if fish die in Oxfordshire and  humans running sailing clubs become ill.

They are now claiming it is better managed and promising tigher controls. But they won’t want to sacrifice the bottom line and have a captive audience who can’t live without water or disposing their waste.

If ever there is a case for the return of  public ownership Thames Water have made it today. They have proved themselves unfit to protect the environment.

 

 

Whitehall doesn’t rule OK: How Wendover canal trust tragically missed out on a £1 million payout from river polluters

thames water

Thames Water’s pollution of the Wendover Arm led to the £1m fine

Over a year ago I raged about the injustice of the very wealthy Thames Water private utility being fined £1m for polluting the Wendover Arm of the Grand Union Canal  with sewage because they ignored a simple £30,000 repair to the outfall of Tring sewage works. The article is here.

I thought it was particularly unfair on the volunteers who are restoring the canal  and decided to write to our local MP, David Gauke, who is now chief secretary to the Treasury, suggesting that the government might reimburse the fine to help the trust. which desperately needs the money.I also lobbied David Lidington, now leader of the House, to see, as Wendover is in his constituency, whether he would back the idea.

Conservative Party Portraits

David Gauke MP, the Treasury minister said No

David Gauke took a long time to reply ( he admitted that his office had mislaid my letter) but finally at the end of January he replied from the Treasury.

His answer was a resounding NO. He wrote: ” Fines are considered a tax-type revenue and government departments and their agencies, in this case the Environment Agency, are legally obliged to surrender these receipts to the Treasury. revenue surrendered to this account is not ring fenced for any specific area of government funding..”

environment agency letter

Full Text of Letter saying NO from David Gauke

Imagine my surprise then to see this press release  on the same day from the Environment Agency.

Environmental charities receive over £1.5 million from businesses which broke environmental laws

This revealed :

“There are 26 Enforcement Undertakings on the new list with payments ranging from £1,500 – £375,000, including 6 companies that have agreed to make 6 figure payments: ( among these were)

  • Northumbrian Water Limited (£375,000) for pumping raw sewage into a tributary of the River Tyne.
  • Filippo Berio UK Limited (£253,906.91) for failing to recover or recycle packaging waste.
  • Anglian Water Services Limited have made two separate payments (£100,000 and £100,000) both for causing pollution incidents which killed fish.

Among the beneficiaries were the Nene Country Park in Northamptonshire and river trusts  on the Tyne. The list of enforcement undertakings is published here:https://www.gov.uk/government/publications/enforcement-undertakings-accepted-by-the-environment-agency

It shows a much wider group of people have benefited.

So I wrote back to the minister which led to this reply last week from Department for Environment and Rural Affairs.

Yes they had been able to do this since 2015 – by accepting Enforcement Undertakings to cover river pollution rather than taking companies to court.

The court case involving Thames Water was in 2016. But here’s the rub -because the pollution took place in 2012 and 2013 it was not covered by the change in the law.

david gauke letterTwo points from this tragic state of affairs. First I am surprised by the ignorance of David Gauke that as a Cabinet minister he didn’t know his own government had changed the law.

Second it seems very unfair the Wendover Arm Trust has lost out. Perhaps pressure should be put on Thames Water – who has just been fined for polluting the River Thames – to give a donation to the trust. And certainly  if they repeat this pollution immediate representation should be made to the Environment Agency for an Enforcement Undertaking so money can be handed out to the trust in future.

 

Is George Osborne’s Northern Powerhouse about to hit the buffers?

George-Osborne

George getting out in time before the Northern Powerhouse runs into trouble

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My last post on the national repercussions of the Great Western electrification shambles has elicited some very interesting information about why Network Rail got into such a big overspend. (£1.2 billion on a £2.8 billion project)

If the information is accurate – and it seems to be based on some sound sources – it would suggest that George Osborne’s strategy to boost the North through better rail connections is about to come to a grinding halt because it has not been properly costed.

Through Tim Fenton well known for his caustic comments on the media oligarchs on his Zelo Street blog , I have become acquainted with an extraordinary obscure debate about the  safe clearances needed to install overhead electrification.

Ever since the electrification of the West Coast mainline in the 1960s Britain has had narrower clearances than the bigger gauge continental railways. We even had a derogation under the EU. But according to rail expert Roger Ford a serious blunder during the privatisation of the rail engineering which meant all the papers justifying the narrower standards were lost. So we now have no derogation because we lost all the paperwork to justify it.

Why this is important is that the higher clearances will add huge costs to ongoing rail electrification projects in every tunnel and under every bridge on the line. They will have to be higher margins between the top of the train and the wires.and the structures  They will  also have to raise the height of every planned pantograph- to protect people and staff coming into contact with it.

Now it appears that if each situation is given a special risk assessment it might be possible to get round the rules – but that will add to delays and costs and will have to be approved by British regulators – the Office of Rail and Road- even if we have left the EU.

As Roger Ford wrote in his December bulletin: “When all this was reviewed by the relevant British Standards committee it was agreed that, while the previous  2.75m clearance  was not justifiable as a minimum limit in a standard, it might be justifiable subject to a risk assessment.  So, according to Network Rail, electrical clearances below 3.5m are possible – with risk assessment.

” What’s really infuriating about this safety-by-diktat, is that the engineers concerned know that it is irrational and yet they go along with it. To paraphrase Edmund Burke, ‘the only thing necessary for the triumph of bureaucracy over common sense is that good engineers should do nothing.’

Great_Bentley_station_geograph-3890553-by-Ben-Brooksbank

Picture of Great Bentley station by Ben Brooksbank

Now obviously this is going to effect more lines than just the Great Western – and this is where George Osborne’s plans  turn to dust.

Already costs are rising on the Midland main line electrification from Bedford to Nottingham and Sheffield. With a critical National Audit Office report likely it is possible that electrification  will stop dead in its tracks at Kettering and Corby – nowhere near the real North.

And the Trans Pennine electrification – another Osborne  project -might stop altogether.

No wonder George Osborne is now going to be editor of the London Evening Standard – he will want to be well clear of the North. This is just a brilliant example of how our incompetent and overrated political amateurs  don’t properly assess what they are  doing.

And the public are  always the losers – in this case the travelling public.

 

Why millions of passengers will face years of overcrowded trains because of a staggering electrification blunder

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Electrification work Pic Credit:South West Business

overcrowded train

Today’s Vision of future travel: Overcrowded train Pic credit:BBC

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If you want to know what is wrong with the present state of  Britain’s railways look no further than a recent National Audit Office report into the mess that is the Great Western electrification scheme. I have written about this in Tribune

As reported at the time the cost overrun and delay totalled a mouthwatering £1.2 billion on a £2.8 billion scheme and led to the scheme being curtailed with delays to the Cardiff to Swansea electrification for up to five years and  similar delays for the electrification of branch services in the Thames Valley.

But the damage  goes much further than just the Great Western Mainline to Cardiff and Bristol electrification scheme, bad though that is, the National Audit Office reveals. It will affect train capacity hundreds of miles away

The electrification was supposed to be the catalyst for the release of rolling stock across the country improving train capacity and phasing out old stock that has been around for decades.

The NAO reports: Under the original plan:

Electric trains from Thameslink would replace diesel trains in the Thames Valley from May providing more capacity to reduce overcrowding

Thames Valley could then release diesel trains to the west, providing more capacity for passengers on the Bristol, Exeter and Cornish networks

West Devon and Cornwall routes would then release diesel trains to support service improvements on Northern franchise routes

New Super Express Trains from the Department’s Intercity Express Programme would replace ageing diesel High Speed Trains on the London to Swansea line cutting journey times from London to Cardiff

The London to Swansea route could then release the diesel High Speed Trains to address capacity issues on intercity routes in Scotland.

An additional fleet of diesel and electric ( Bi mode trains) capable trains recently ordered by the train company, Great Western Railway,  would be introduced in the south-west, providing more capacity and faster journey times on London to Plymouth and Penzance routes.

Now:

Diesel trains due to go to the west in 2017 will be retained until 2019 as electrification is completed and new electric trains are phased in

Passengers in the west (Bristol, Exeter and Cornwall routes) will now have to wait almost two years later than scheduled to see benefits such as more capacity.

Passengers on Northern franchise routes may have to wait an additional nine months as trains are retained in the west to protect services

Great Western Railway has also had to make additional orders of new bi-mode  trains to prevent the cancellation of services on busy Oxford to London routes.

The result according to the NAO will mean higher costs as diesel trains cost more to maintain, lower revenue because of lack of capacity and a bill for converting older trains to comply with stricter laws on helping disabled passengers that would not have been necessary if they had been replaced.

But it goes further than the NAO findings. The privatised rail companies- many owned by state railways in France, Holland and Germany – will be allowed to raise fares every year regardless- so they charge commuters more for inferior services but spend the profits modernising train services in France, Holland and Germany.

And they won’t care if the trains are overcrowded as they can maximise revenue. If ever there was a case for reforming the rail system and ending privatisation this is a perfect example.

Exposed: The Whitehall high flyer who stole ministry secrets to help Adam Smith International bid for overseas aid contracts

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Raja Dasgupta: pic credit Daily Mail and keyword suggestions

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This is Raja Dasgupta. He was a fast stream entrant to the civil service elite. He had a  good career . He started in the private office of  Alan Duncan ,the minster for international development in 2011.

He was promoted to climate change manager in South Africa in 2012 and then became head of the business effectiveness team in 2014 also in South Africa.

His Linked In profile says : “I have played a leading role on strategic business planning for DFID’s regional Africa programme, directly advised and worked with UK International Development ministers, and officially represented the UK during international treaty negotiations at the United Nations.”.

But in June last year he joined Adam Smith International – a British private overseas aid contractor ( annual income £130m) which relied on 80 per cent of its money from the Department for International Development – as a senior manager based in Nairobi, Kenya.

Now he has proved to be the catalyst that has brought down ASI Ltd – which has been effectively banned from bidding for any more contracts until the organisation has proved to the ministry that it has been completely reformed. Three senior founder directors, Peter Young ( in his youth a far right Tory), Andrew Kuhn and  Amitabh Shrivastava have resigned and the founder executive chairman,William Morrison, is to leave once the reforms are completed.

Three separate sources in England and Africa  (and the Mail on Sunday) have named Raja  Dasgupta as the civil servant who gave confidential ministry  information to ASI Ltd which gave them a competitive edge to bid for contracts across Africa.

One source said : “when moving to ASI in South Africa he took with him DFID country plans and country specific private sector engagement plans that DFID would then rank bids against, it set out specific priorities and specific sectors and markets that DFID wanted to focus on…This then allowed ASI to bid on contracts specific to these Southern Africa private sector engagement plans as set out and created by DFID and FCO.( Foreign and Commonwealth Office).”

Certainly the official findings of a DFID report – which does not name him – confirm this.

“The withdrawal by ASI is the result of serious concerns about the company’s behaviour:

  • ASI employees sought to make use of improperly obtained DFID documents shared within ASI by a former member of DFID staff.
  • The documents in question were draft internal DFID documents which contained information clearly confidential to the Department.
  • The documents were nevertheless shared widely within ASI, including to senior personnel, in full knowledge that ASI should not have had access to the documents.
  • This was done with a view to exploiting the material to ASI’s commercial advantage.
  • At no point did ASI or any of its employees question this or raise concerns with DFID.
  • DFID has conducted its own forensic investigation into these allegations. There have been serious questions over ASI’s ethical integrity. It is therefore right that ASI is taking action to address this.”

I tried to contact Raja Dasgupta by ringing his Nairobi office. There was no reply nor message facility to leave my name. I tried to contact ASI’s media team and did leave a message about whether Raja was still working for them. They have not come back to me.

Reprehensible as his actions were, this story has wider ramifications. He is not just a rogue  chancer or trader even if DFID seem to pin the blame on him. The culture exposed at Adam Smith International is a damning indictment of the British company. They knew they had access to confidential material which could be used for commercial gain. They wanted to make more profits in a company that already paid six figure salaries  and huge dividends to its top people. They were millionaires dealing in poverty. That is why – even if it is reformed – DFID are right to say there will be no “quick fix” which allows them to resume business next month.

But it also raises questions about DFID and its capacity to monitor what is going on. While the aid budget has gone up – the staff budget has been cut. So fewer people are monitoring larger sums of aid. DFID will not release the  full forensic report into what happened – either to the public or to the Select Committee for International Development, which holds the ministry to account. What have they got to hide.

This story began when the Mail on Sunday exposed the firm trying and failing to hoodwink the Select Committee on International Development by creating favourable reports of their work. It has now morphed into an example of how British private contractors can try and rip off the British taxpayer for private gain by any means they see as necessary.

 

 

Independent Police Complaints Commission largely drops investigation into Met Police handling of Operation Midland

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IPCC largely clears Met Police of disciplinary charges in their handling of Operation Midland Pic Credit: Wikipedia

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The IPCC has announced on Budget Day  that it is dropping disciplinary proceedings against most of the police officers who carried out the £3m investigation into  allegations of a historic Westminster paedophile involving prominent figures, Mps and former government ministers.

In particular they have cleared all the officers facing possible disciplinary charges who investigated complaints by ” Nick ” who has been accused in a separate  independent report of possibly perverting the course of justice by raising the allegations. This is subject to a separate investigation by Northumbria Police.

The IPCC says: “The IPCC has also discontinued its investigation into allegations the DAC, DSupt and DCI failed to properly investigate allegations made by a complainant ‘Nick’ which lead to an extended investigation causing prolonged and undue stress to those under suspicion.

“There is no evidence to indicate bad faith, malice or dishonesty and no indication any of the officers may have behaved in a manner which would justify disciplinary proceedings.

” The information available indicates the investigation was extensive and carried out diligently with the majority of the decisions made appropriately recorded.”

They have dropped  complaints made by some of the people involved that the police exceeded their powers in seizing material from the homes they raided once they got search warrants.

The only investigation that will continue is into whether the police breached rules in applying for a search warrant on homes by not disclosing all the relevant information to a district judge

The Met Police had previously apologised to Lord Brittan’s family for shortcomings in the investigation-particularly the delay in informing him that they had dropped the investigation.

The full statement from the IPCC is as follows :

Following a comprehensive assessment of the available evidence relating to the conduct of five Metropolitan Police Service (MPS) officers linked to its Operation Midland, the Independent Police Complaints Commission (IPCC) has determined the scope of its investigation.

Operation Midland was an investigation into allegations of non-recent sexual offences said to have been committed by prominent public figures.

There is an indication that a detective chief inspector (DCI), a detective inspector (DI) and a detective sergeant (DS) may have behaved in a manner that would justify disciplinary proceedings in that they may have failed to accurately present all relevant information to a district judge when applying for search warrants for three properties.

It has been determined that there is no such indication in respect of similar allegations against a deputy assistant commissioner (DAC) and a detective superintendent (DSupt). As a result this part of the investigation against them has been discontinued.

The IPCC has also discontinued its investigation into allegations the DAC, DSupt and DCI failed to properly investigateallegations made by a complainant ‘Nick’ which lead to an extended investigation causing prolonged and undue stress to those under suspicion. There is no evidence to indicate bad faith, malice or dishonesty and no indication any of the officers may have behaved in a manner which would justify disciplinary proceedings. The information available indicates theinvestigation was extensive and carried out diligently with the majority of the decisions made appropriately recorded.

The MPS also referred the conduct of the DAC relating to allegations that an investigation into Lord Brittan was extended without good reason to do so thereby causing significant distress to Lord Brittan and his family. The evidence indicates a significant delay in making the decision to take no further action in the case but does not indicate the DAC may have behaved in a manner which would justify disciplinary proceedings. As a result the IPCC has discontinued this part of theinvestigation.

The IPCC has also discontinued investigating allegations that there were irregularities in the seizure of exhibits during the subsequent searches. There is no evidence to indicate that any of the officers involved may have breached professional standards.

IPCC Commissioner Carl Gumsley said:

“The allegation that incomplete information may have been provided to a district judge when applying for search warrants is serious and the IPCC will thoroughly investigate this matter.

“However, a thorough assessment into the other matters that were referred to the IPCC has been carried out. After considering the information resulting from that assessment, I am of the opinion that there is no indication that these matters would amount to behaviour which would justify disciplinary proceedings. Consequently, I have taken the early decision todiscontinue the independent investigation into those matters.

“In coming to that conclusion I have been very conscious of the fact that the force has already acknowledged its shortcomings in the investigation into the late Lord Brittan and has apologised to Lady Brittan.

“It is also important to acknowledge the climate in which Operation Midland and the investigation into Lord Brittan were being undertaken. At this time there was much concern that cover-ups by the ‘establishment’ had taken place and there was widespread intense scrutiny on both investigations. The way both investigations were conducted should be considered in that context and in line with policies which existed at that time.”