A Whitehall management disaster that could wreck Britain’s trade deals after Brexit

UKTI blog-online

Jazzy representation by UKTI of Britain’s export trade that belied the mismanagement of their contract

CROSS POSTED ON BYLINE.COM

If you were running a business would you employ people without checking how much you are paying them? Would you lose your documents for  outlining  your business case for a crucial contract? Would you also sign a deal that was  so complex – running to over 600 pages – without understanding what you are doing?

Of course you wouldn’t or you’d soon be bust.

This and more was done by a Whitehall agency in a botched up privatisation contract which allowed the contractor to rip off the government and the taxpayer and left the agency looking daft.

What is more serious is that the agency is UK Trade and Investment – the very organisation that  will be at the heart of advising British firms on how to capitalise on exports and encouraging foreign firms to invest in Britain – post Brexit.

While ministers have been flying round the world promising an exciting future for trade deals outside Europe – the body that actually has to do all the  nitty gritty work has been an embarrassing failure that couldn’t organise the proverbial p… up in a brewery.

The whole sorry saga was outlined in a report by MPs on the Public Accounts Committee which came out during the recess following a National Audit Office investigation. I also wrote about this  and another privatisation failure involving tax credits in Tribune magazine.

The firm which ripped off the department was PA Consulting who were asked to supply staff to provide specialist advice to exporters. One extraordinary fact in the report is that PA Consulting jacked up consultants rates by £142 a day – some 29 per cent – between the bid and the deal ..and UKTI did not even notice it.

The MPs said : ”

“UKTI displayed poor governance and did not keep proper records. It made a simple matter as complex as possible. It negotiated significant changes to the contract with PA when it should have gone back to the market. It pushed to sign the contract before it had finished these negotiations. All this was unfair to other bidders and left UKTI exposed to being exploited by PA.

“For its part, PA fell well short of the appropriate duty of care that we expect contractors to demonstrate when in receipt of taxpayers’ money; instead of looking out for its client, PA took advantage of UKTI’s poor decision making. It sold UKTI a service it is not clear it needed and failed to give the fair breakdown of its costs and profit that UKTI asked for.

“Instead, it used the negotiations to pass on costs to UKTI that it had said in its bid that it would bear, and to increase its profit from the contract while telling UKTI that its profit had not increased. Our inquiry has been hampered by the lack of proper records from all parties concerned.”

The MPs are demanding a forensic audit of UKTI as a result of this fiasco. I should say so or otherwise I don’t see British firms getting any meaningful help from this group of naive incompetents  when we do start having to negotiate new trade deals.

How the Tories have fixed the road programme to maximise the motorist vote

M62

M62 motorway £161m of improvements planned before voters next go to the polls. pic credit: BBC

CROSS POSTED ON BYLINE.COM

The government is fiddling its £11.4 billion road  building and improvement programme  so that  new road schemes will be timed to have their maximum impact to gain votes from motorists when they go the polls.

The Department of Transport already fiddled its present plans  by fixing the time for new road schemes to coincide with voters going to the polls in 2015.

Now they are planning to have the largest number of schemes  going ahead in 2019 to 2020  just when people go to the polls for the next general election.

This disclosure does not come from the Labour Party or the Liberal Democrats – who were party to the first part of the plan – but from an impeccably detailed analysis by Whitehall’s spending watchdog, the National Audit Office – with a reputation for independence and political neutrality.

Their investigation into the highways agency programme  for motorways and A roads reveals that ministers cut short the planning period for new road schemes to just 17 months- instead of a normal 30 month period – so it could be timed to come out for the 2015 general election.

And their analysis  of present plans show the busiest period for new schemes to start will be in 2019-20 just as people are preparing to cast their votes. I have written about this in Tribune magazine.

The manipulation of the road scheme plans has however meant the ministry has  had one embarrassing drawback. Ministers over committed the number of schemes that can be built within its present budget and at least 16 may have to be scrapped because they are not value for money.  But this embarrassing decision will be taken soon – mid term – so it should not affect campaigning in the run up to the election. So in fact the promises made by the Tories in 2015 will in part be fake news.

The  NAO report says the rush to produce a plan before the 2015 election “meant that the Department and the Highways Agency could not carry out sufficient analysis and planning to ensure that the Road Investment Strategy was affordable and deliverable, and that the projects would produce high benefits relative to costs.

“In particular, the need to develop so many new projects more or less from scratch meant that the portfolio of enhancement projects contained a high level of uncertainty from the outset.”

The report says: “The Department chose to set a capital programme which was forecast to exceed funding by £652 million. 

This ‘over-programming’ had been standard practice in the Highways Agency, as it was expected that some schemes would be delayed or drop out of the portfolio as it was refined. By August 2016, the amount by which forecast capital costs exceeded available funding had increased to £841 million.”

Among the projects that have generated extra money include £234m for Project Stack – to allow lorries to be parked on the M20 while waiting to go abroad – which will be essential if border controls are introduced as a result of Brexit. Another £161m is needed to bring forward two projects on the M62 which the government wants to turn into a smart motorway  for 60 miles between Manchester and Leeds.

Amyas Morse, head of the National Audit Office, said: “The Department and Highways England need to agree a more realistic and affordable plan if they are to provide optimal value from the Road Investment Strategy”.

…Decisive action needs to be taken before the updated delivery plan is published in the summer if shortcomings in the current strategy are not to be carried over into future road investment periods.”

But the truth is the government know motorists’ votes play a part in any election. and they will do their damnest to fix schemes – from a local by pass to improved motorways – to make sure they can be used to maximum electoral advantage.

Independent Child Sexual Abuse Inquiry WILL investigate the late Greville Janner and whether there was a cover up

lord janner

Lord Janner Image courtesy BBC

The independent inquiry into child sexual abuse has decided to go ahead with a wide ranging inquiry into allegations that the late Greville Janner was involved in child sexual abuse and whether the Labour Party, the intelligence services, Parliament and government departments could have been involved in a cover up.

The decision, announced on the inquiry’s website, comes despite strong objections from Lord Janner’s family and a plea from retired  Assistant Chief Constable Tony Butler, from Leicestershire Police  to halt investigations immediately.

The terms of the inquiry are set out in a full statement  from Alexis Jay, chair of the inquiry here but the full terms are worth repeating in full.

” 1. The Inquiry will investigate institutional responses to allegations of child sexual abuse involving the late Lord Janner of Braunstone QC (“Lord Janner”).
2. In particular, the Inquiry will consider
2.1. the adequacy and propriety of law enforcement investigations and prosecutorial decisions relating to allegations falling within paragraph 1 above;
2.2. the extent to which Leicestershire County Council and the Kirkwood Inquiry were awareof allegations falling within paragraph 1 and the adequacy of their response;
2.3. the extent to which the Labour Party, Parliament, government departments, and/or the security and intelligence agencies were aware of allegations falling within paragraph 1 and the adequacy of their response;
2.4. the extent to which any other public or private institution may have failed in its duty to protect children from sexual abuse in respect of the allegations falling with paragraph 1;
2.5 whether any attempts were made to exert improper influence in order to hinder or prevent an institution from effectively investigating or otherwise responding to allegations falling within paragraph 1.
3. In light of the investigations set out above, the Inquiry will publish a report setting out its findings and recommendations to improve child protection and safeguarding in England and Wales. ”

daniel-janner-qc

Daniel Janner QC Pic credit: http://www.regulatorycriminallawyers.co.uk

In a series of private meetings Lord Janner’s three children, Daniel Janner QC,Marion Janner OBE and Rabbi LauraJanner-Klausner,  objected to further inquiries while they were pursuing cases against people who had claimed they were sexual abused by him in the civil courts.

They two daughters argued: “The Janner family and Estate remains energetically opposed to the singling out of an innocent, dead man for a paradigm case study that will, necessarily, be based on incomplete and distorted information.

“It is a further insult to Lord Janner’s posthumous reputation with consequential cost to the Janner Family and Estate, including devastating emotional upset.
It would be more representative to pick a prominent person from public life as the paradigm who is either alive,or has been subject to a prosecution process (whether convicted, or not).”

Daniel Janner argued:“the decision on whether to hold the investigation and whether it should be part of the Westminster strand should be put on hold pending the outcome of the civil case and IPCC.”  He insisted that his father was innocent.

There was also an attempt by the Janner family to have one member of the panel, Dru Sharpling removed from this particular inquiry, on the grounds that she could have a conflict of interest having worked for the Crown Prosecution Service and HM Inspector of Constabulary, but this was rejected by Amber Rudd, the home secretary.

But the strongest objection came from the former assistant chief constable of Leicestershire Tony Butler, who wanted the inquiry stopped.

He argued:”this particular investigation is unlikely, by virtue of temporal scope, number
of institutions involved or as a paradigm of the “pendulum effect”, to contribute
any unique or unusual feature”

He claimed all previous inquiries had already established what needed to be done in Leicestershire – during the time Frank Beck, who was found guilty of numerous child sex abuse attacks – in the 1990s. This is quite evidently not the case as the excellent book Abuse of Trust by  Paul Gosling and Mark D’Arcy which examined the Beck scandal reveals.

But this was rejected by alleged victims of child sexual abuse and counsel to the inquiry and their view prevailed.

I am very pleased with the decision particularly now it is known that the scope of the inquiry will be wide ranging. It is equally important that the inquiry looks at whole picture surrounding the allegations of child sexual abuse against Lord Janner which means delving into the Labour Party, Parliament, the security services and Whitehall and also forensically investigating whether there were further cover up. if they appear to be true.

So I applaud Alexis Jay for pursuing this against a background where some newspapers would rather it was not investigated.

 

An inquiry into an inquiry: Will it uncover what went wrong when Ben Emmerson quit the Child Sexual Abuse inquiry?

ben emmerson

Ben Emmerson: He resigned as leading counsel from the inquiry last September Pic Credit: UN

CROSS POSTED ON BYLINE.COM

The rather bland announcement from Alexis Jay, chair of the independent inquiry into child sexual abuse that she had appointed an employment judge Mark Sutton to investigate dignity at work  and safeguarding inside the inquiry poses more questions than answers.

It followed ferocious  criticism from the Commons Home Affairs Committee after the rather lurid – and now said to be untrue – tale that its leading counsel. Ben Emmerson, had sexually assaulted a woman on the inquiry’s premises.

The report concluded: “It is not for us to pass any comment on the allegations made in the media about the former Counsel to the Inquiry, which he has categorically denied. We are not in a position, and it is certainly not our responsibility, to assess either the facts of the case or the details of the processes that the Inquiry pursued.

However, on the basis of the evidence we have seen, we do not believe that IICSA has taken seriously enough its responsibility to pursue allegations of bullying or disclosures of sexual assault within the Inquiry.”

It goes on:

“Nor do we believe it has done enough to demonstrate publicly that it has a robust approach to such matters. IICSA’s public response has been inadequate, and the words attributed to an unidentified “IICSA source” in the press in response to the alleged assault are completely inappropriate, appearing to dismiss the serious nature of the matter and the credibility of the alleged victim.

“One of the Inquiry’s key purposes is to assess other organisations’ procedures for dealing with disclosures of sexual assault or abuses of power, and institutional reluctance to confront difficult issues that might jeopardise their reputation. We therefore believe that it is extremely important that the Inquiry can show that it treats these issues with appropriate rigour when they affect IICSA itself.”

 The reason for these strong words followed evidence from Hugh Davies QC, who resigned as Deputy Counsel to IICSA in December 2015, He made it clear he was unhappy with the procedures for handling such instances.  He said:“the institution cannot abdicate responsibility to the person making the disclosure, who may be vulnerable or otherwise emotionally unable to pursue a formal process”.

Also significantly the report says : “We also received a confidential submission relating to this alleged incident. Although it is not appropriate for us to publish this evidence, it has helped us to understand the incident and the way in which IICSA dealt with it. We are very grateful to the individual concerned for providing us with this information.”

How IICSA handles this will be crucial and it must not be seen to bury it. Its instructions to Mark Sutton say:

“You are requested to examine the events surrounding the Counsel to the Inquiry’s resignation from the Inquiry and to advise on the appropriateness, in the given circumstances, of the Inquiry’s actions at that time.
If you find evidence that there are structural challenges in HR / employment matters that arise due to the legal status of public inquiries and their employment model of seconded staff, self employed individuals and contractors, the Inquiry would welcome your Review making broader recommendations or observations.”

 He will not rerun or second guess the actual incident nor will he publish his advice to the inquiry. And the inquiry will see his report  before any statement is published.

I have also learnt separately that Graham Wilmer, a member of the original panel before it became a public inquiry, wants Mark Sutton, to look at the involvement  of Mr Emmerson in a  campaign conducted by members of the Victims and Survivors Consultative Panel to undermine him and the Lantern Project, which helped survivors in  the Wirral, North Wales and the North West. He has passed documentary evidence to the inquiry. Given that Mr Wilmer was a member of the first independent panel one would expect ” dignity at work ” to apply to their dealings with him.

My concern – given there have been other allegations of  bullying dating back to when Dame Lowell Goddard was in charge – is the inquiry may not do enough to allay fears and suspicions among staff working there.

If that happens people will not be satisfied. You can’t have an inquiry examining the most sensitive allegations of historical child sexual abuse which have been hidden for decades through the abuse of power  if it can’t handle sensitive allegations about its own staff.

We don’t want yet another cover up in this already troubled inquiry.

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

micheal lynas

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

CROSS POSTED ON BYLINE.COM

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 Prince’s Trust)  and Shaun Watling- may be in the same position. The Prince’s Trust confirmed that Martina Milburn also gives her time on a voluntary basis.

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

CROSS POSTED ON BYLINE.COM

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.