Revealed: Thousands of Britain’s top bankers become Euro millionaires while workers pay clipped to 1 per cent

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HSBC. Five senior executives due to share £33.4m Pic credit: BBC

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The day  after the general election the House of Commons library released a flood of papers which had been held up because of  purdah rules until after the result was known.

One of the most revealing papers was one on Banking Executives’ Renumeration in the UK. It drew on two sources – Britain’s submission  ( required by EU rules ) to the European Banking Authority and British sources such as company reports and details from the banks themselves about long term incentives for senior executives.

The facts revealed in the annexes to this report confirm what a lot of people have suspected but have not always been able to prove. There is-a widening gulf between the top and the bottom that has been going on during the fiercest period of austerity which has seen real wages for million falling. If John McDonnell, the shadow chancellor, and Jeremy Corbyn, the Labour leader, had access to this information during the election it could have been dynamite.

Two facts are extraordinary. This boom in higher executive pay came under the coalition between 2012 and 2015 when David Cameron and George Osborne were actively pursing wage freezes and minimal wage rises in the public sector.

Second it is the scale of it – it is not a handful of  new bankers becoming Euro millionaires, it is thousands of them.

And for the very, very top executives at five of our biggest retail banks it is untold riches if they meet performance targets.

The wider picture only came out because of a  European Commission directive to collect figures from all 28 EU members on how many bankers are earning over 1 million euro (£884,300 at current rates) a year. At the time the Euro would have been worth less – but even so it is a large sum.

Britain will no longer have to supply this when we leave the EU.

The figures show startling increases in senior staff employed by the banking industry falling into this bracket between 2012 and 2015 across nearly all sectors. Altogether the number of higher earners has risen nearly 300 per cent over this period, from 1272 to 3551.

Among the bigger rises are those in investment banking where the numbers earning this figure and more has risen from 947 to 2146. In asset management the numbers rose from 94 to 415 while those in high street banks rose from 52 to 105.

The average salary among the 2146 top earners in investment banking was 2,021,000 euro or over £1.78 million a year. Among the 415 people in asset management it was even higher at 2,201,000 euro or £1.946 million a year. In retail banking the 105 people averaged a little less at 1,789.000 euro or £1.582 million each a year.

Equally damning is a survey taken from five banks in Britain – HSBC, Barclays, Lloyds, Santander and the state owned RBS.

It looked at the money the five to eight top executives could make. At Lloyds 8 people share £24.9 a million a year between them. The figure for Barclays was £27.1m and at HSBC the top five people shared a whopping £33.4m.

Figures for the state owned RBS are lower at £11.35m while at Santander it was £10.6m.

As already known the chairmen and chief executives also get good pay packets worth millions.

What this says is that the coalition of David Cameron and Nick Clegg were happy to preside over this boom and impose severe austerity, and job cuts to pay for the mess the very same bankers created  by triggering the  crash in 2008.

As the song goes : “It’s the poor what gets the blame, It’s the rich what gets the pleasure, Isn’t it a blooming shame? ”

For not much longer I suspect given the current climate.

I have written about this in Tribune magazine. The House of Commons library report is  here for those who wish to read it

 

 

 

 

GRENFELL TOWER FIRE

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I am running these series of blogs from the distraught residents association in London following this fire . They sadly speak for themselves. This absolutely tragic scandal means there must be a full scale inquiry set up by the government. These warnings from the local residents association suggest to me that something badly went wrong over fire safety concerns and that people will need to be brought to book.

The inquiry must be wide ranging and involve all tower blocks that have been recently refurbished in this way across the country not just in Kensington. In the meantime tribute must be made to the London Fire Brigade – which has been the subject of merciless cuts and privatisation – and the NHS hospitals again at the front line so soon after two terror attacks in the capital.

All one can say is that I cannot imagine the horror and fear that distraught families and their relatives are facing tonight after such an appalling event and my thoughts are with them.

grenfellactiongroup's avatarGrenfell Action Group

Watching breaking news about the Grenfell Tower fire catastrophe. Too soon (5am) to even guess at numbers of casualties and fatalities. Our heartfelt and sincere condolences to all who have perished, to the injured, to those who are bereaved or are still searching for missing loved ones.

Regular readers of this blog will know that we have posted numerous warnings in recent years about the very poor fire safety standards at Grenfell Tower and elsewhere in RBKC.

ALL OUR WARNINGS FELL ON DEAF EARS and we predicted that a catastrophe like this was inevitable and just a matter of time. Below is a list of links to previous blogs we posted on this site trying to warn the Royal Borough of Kensington and Chelsea, who own this property, and the Kensington and Chelsea Tenant Management Organisation who supposedly manage all social housing in RBKC on the Council’s behalf:

https://grenfellactiongroup.wordpress.com/2013/01/28/fire-safety-scandal-at-lancaster-west/

https://grenfellactiongroup.wordpress.com/2016/11/20/kctmo-playing-with-fire/

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Jeremy Corbyn’s biggest victory: Revitalising democracy

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Jeremy Corbyn rally – as big as a Gladstone or Disraeli rally. Pic Credit; Twitter

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Jeremy Corbyn’s good performance  in the polls last night was not just brilliant for Labour. It was also not just because he produced a left of centre detailed manifesto. It was not even because he avoided ” yah boo sucks”  attacks on the Tories or Liberal Democrats.

His biggest victory last night was because he galvanised democracy and got a new generation of young people to take an interest in politics and bother to register to vote. He did this in the extraordinary space of two months.

On  March 24 Tribune published an editorial highly critical of Labour’s performance in general and Jeremy Corbyn in particular. It said simply Labour isn’t working and this was from a left of centre magazine not the Daily Mail.

Lest it be forgotten then the Tories had a 19 per cent lead over Labour and crucially had a 41  to 29 per cent lead among the  18-24 year old group.  Thus at that time Theresa May even had a lead among students and young workers.

Now in the remarkable space of  just 10 weeks Jeremy Corbyn and his election campaigning team has totally transformed the picture of politics for youth.  Not since the barnstorming performances of Gladstone and Disraeli in the nineteenth century and Churchill in the early twentieth century have such huge crowds turned up at rallies to hear a party  leader speak.

And remember these huge meetings predate the invention of radio and TV let alone the internet and the smartphone.

To get youth as enthusiastic to think they can change events in an age of so many other distractions is a mega achievement which leaders of every other political party should be profoundly grateful to Jeremy. For if the idea of change through the ballot box is not passed from one generation to another democracy dies and dictatorship looms. And given it was against a background of two random terrorist attacks aimed at the young is even more remarkable.

Sadly I must say his dream of encouraging young people to participate in democracy did not seem to be shared by the Conservatives. They did not appear to be encouraging the young to  register to vote – presumably because Lynton Crosby thought it would not get many new votes for the Tories.

And worse on polling day some people – including one person with a blue rosette in Enfield and a UKIP and Tory run council in Plymouth – lied to young first time voters that they needed an ID card to vote at polling stations- presumably in a desperate move to keep  Labour from winning marginal seats. Theresa May does want to introduce ID cards for voting – but I am afraid it is not the law at the moment so it is illegal to mislead voters.

The contrast between Labour and the Tories over democratic rights is still continuing after the election. Theresa May is behaving like a headmistress of a rather badly run prep school  – by pretending that she is still running a successful operation when people are stopping paying the fees. She has lost authority and seems to be developing a  “bunker type”  mentality ignoring the reality that the game is already half up.

There appear so far to be no concessions to the democratic process from the Tories – and the main aim seems to be to ally May with the Democratic Unionist Party in Northern Ireland – probably adding to division there between them and Sinn Fein. Would she ban abortion in the rest of UK if the DUP demanded it? Would she concede to some of their antiquated views about gays? How will this play out over the present crisis in Stormont?

But I profoundly believe that what Jeremy has started cannot be stopped. There may have to be yet another general election after a few months to complete the transformation – though this will be highly risky in the middle of Brexit negotiations. Theresa May called the election believing her own propaganda that Jeremy was a no hoper. Now she has found out the hard way  that he isn’t and no matter how many pages of propaganda Paul Dacre and Rupert Murdoch use to smear him it no longer works.

 

Pollsters to lose tomorrow’s General Election

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Jeremy Corbyn Pic Credit BBC

Jeremy Corbyn Pic credit:BBC

Theresa May

Theresa May Pic credit:BBC

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Today’s last minute polls show the volatility of the electorate and why it is has been such a difficult election to call. It started as a guaranteed ” slam dunk ” win for Theresa May with a  lead over Labour of 24 points. Then the prediction was that with an unpopular Labour leader who was not supported by many of his MPs would help Theresa May increase her lead as Opposition parties tend to lose their momentum during a general election and see their  position decline. Hence the initial predictions that Labour already 101 seats behind the Tories could lose another 70 seats or even more giving her a majority of 150 to 200. Instead every poll has pointed to a narrowing of the lead, Jeremy Corbyn, has surprised everyone by leading a very energetic campaign on a left wing manifesto and even passionate Tory supporters admit their own campaign has been a mess. Theresa May has not appeared as the self confident stable leader  unafraid of debate. She has positively avoided it.

Then there is an expected swing to the centre  which should accompany Labour moving Left..  Based on this  Tim Farron  hinted at first that he could replace Labour as  leader of the official Opposition on the back of the 48 per cent Remain vote. Instead – and all the polls  are agreed – the Lib Dems look like making little progress and could be pushed back. The electorate has become  totally polarised – just like during the referendum.

And as for UKIP who once boasted that they would replace Labour in the North as the main opposition to the Tories – their collapse has been phenomenal – they are unlikely to have any representation in Parliament and  have lost seats hand over fist in the local elections.

But can we trust the pollsters today? Just as in 2015 when the majority got a hung Parliament wrong – and the one poll that predicted a Tory victory over egged the size of it.

Unlike last time there is no consensus – with each poll coming to wildly different conclusions.

They range from a Tory majority of 124 and 100 – with the Lib Dems also losing every seat in England including their leader Tim Farron and former leader Nick Clegg ( to Labour) to Labour gaining seats and the Tories short of majority in Parliament. In the middle are Lord Ashcroft -Tory  majority of 64 – and Nowcast with Labour losing 13 seats and the Tories gaining 23.  The latter last two give Theresa May full command of the House of Commons.

Much will depend on who will vote. The young are pro Corbyn so if they turn out in substantial numbers – the result will be good for Labour. But pollsters don’t expect them to vote – and the elderly – despite the row over paying for social care  to rush or even limp to the polls to ensure a big Tory victory.

Mind you if people keep telling the young they won’t vote – they may well be bloody minded enough to turn out to defy expectations.

Whatever happens it will be bad news for pollsters. Because someone is going to get the result awfully wrong – they can’t all be right.

 

 

 

 

My billet-doux from Theresa: Push Brexit from the comfort of your own home and register your vote plan at Tory Central Office

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Theresa May

May’s billet doux campaign to her supporters Pic credit:BBC

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One of the more amusing things about this election is that Conservative Central Office appear to have registered me as a Tory supporter, How this has happened I do not know but as a result nearly every day I receive a Dear David  billet-doux from Theresa May, Boris Johnson, Amber Rudd and Patrick McLoughlin telling me what line to take against Jeremy Corbyn.

They were especially active when Theresa May  and Jeremy  Corbyn were facing separate Paxman interviews – with five lines to take – emphasising Corbyn’s support for the IRA .

But in the last week it is clear that the Tories have gone back to basics and  even after the Manchester terrorist attack – are now trying to get a big majority on Theresa May’s stance over Brexit.

As this letter shows:

Dear David,

I’m excited about the future.

If we make a success of Brexit, there are great opportunities ahead.

My plan for Brexit will return control to Britain – and help us shape a brighter, fairer future for our country.

But David, I need every Conservative supporter to get behind my plan to make Brexit work.

So please join our team speaking to voters around the country by signing up to make calls today.

As we approach the final week of this campaign, it’s crucial that everybody remembers this fact: Britain is about to enter into the most important negotiations of my lifetime.

Brexit negotiations are set to begin just eleven days after polling day. And the European Union is already adopting an aggressive negotiating position.

That’s why Britain needs a strong government and a strong Prime Minister capable of standing up to Brussels.

Your support is more important now than ever. Because every vote for me in this election will strengthen my hand in the negotiations that are about to start.

So, David, help me make my case to the country – and help me make a success of Brexit – by signing up to make calls today.

 

Thank you for your support

Theresa May
Prime Minister and Leader of the Conservative Party

If you click on the link you will find three choices – join a phone bank, go to Conservative Central Office ( you get a special rousing address from Boris if you do) or make the calls under Tory guidance from your own home. Fascinating to know how many people have received calls in the last few days – and whether this appeal has been launched because the Tories have not had enough support from members to do the work despite overflowing with cash donations.

On polling day Theresa has asked me to have a plan on how I am going to vote – suggesting I might go with the family, friends and neighbours to stop Jeremy Corbyn Diane Abbott and  John McDonnell going into government.

As she says here:

Dear David,

Today I’m asking you to do one crucial thing: make a plan to vote.

If the Conservatives lose just 6 seats next Thursday, we will lose our majority: and Jeremy Corbyn will be in charge of Brexit, Diane Abbott our national security and John McDonnell our economy.

There is so much at stake David – and I need your support.

Please make a plan to vote on our website today, so you know what time you’ll be voting next Thursday, and who you’ll be going to the polling station with.

And then forward this email on to every Conservative supporter you know, so they can make a plan to vote too.

Thank you for your support,

Rt Hon. Theresa May MP

Theresa May
Prime Minister and Leader of the Conservative Party

 

What this does show is that even on polling day – who goes out to vote will be absolutely crucial to the result – and the Tories are planning to monitor their supporters to make sure they have voted. Interesting times.

Unison’s Special Chocolate Biscuits Scandal: An insight into murky behaviour at the top of Britain’s biggest public sector union

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Dave Prentis, general secretary, Unison Pic Credit: Twitter

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A chocolate biscuit; Pic Credit: Wikipedia

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Britain’s biggest public sector union last month escaped the embarrassment of having to rerun an election for its well known general secretary, Dave Prentis despite a judge deciding that one leading official ” flagrantly ” broke union rules to get him re-elected.

The union had faced a barrage of complaints from  three rival  candidates to Prentis – Heather Wakefield, John Burgess, and Roger Bannister  – and a long standing party member, Jon Rogers at a hearing at the end of last year before an assistant certification officer and part time judge, Mary Stacy.

She rejected demands for a rerun of the election, criticism that the Electoral Reform Services who had a £1 m fee to supervise the election  were not independent, and also threw out a complaint against Liz Snape, Dave Prentis’s long term partner,  that she had broken rules by campaigning for him in union time,

But the judge upheld a complaint against Linda Perks, now a national secretary and previously London’s regional secretary, for flagrant breaches of union rules – after reading a transcript and listening to a secret tape of a meeting held at the TUC’s Congress House, where, it is said, 50 officials were urged to break campaigning rules to ensure the re-election of Dave Prentis. The code name for the campaign was ” Special Chocolate Biscuits”.

The judge ruled out taking enforcement proceedings to force another election only because she was satisfied that Dave Prentis did not know that Linda Perks had taken such actions and because she thought he would still have won despite electoral irregularities in the campaign.

The election took place in a febrile atmosphere just after Ed Miliband’s resignation as Labour party leader and when Jeremy Corbyn was mounting his successful bid for party leader.

Mr Prentis who had won overwhelming support in previous election  but was facing a much tougher challenge with a leading union official, Heather Wakefield, standing against him alongside two other candidates.

The judge, said some of the criticism of Heather Wakefield by Prentis supporters amounted to “demonization” and she also criticised the failure of the union to apologise to Jon Rogers for threatening him with a libel action when he complained of electoral malpractice.

But she reserved her most damning criticism for Linda Perks and the way the union later handled disciplinary proceedings against her  and its failure to investigate other people who were involved.

After listening to the tape the judge ruled :“ Ms Perks tone is not just confident and swaggering in so openly breaking the rules but chilling in its brazenness and demonstration of unchecked power”.

She blatantly had known she was breaking union rules by getting officials to organise support for Dave Prentis during work time which was against union rules. The judge notes that it almost looked that for 3 or 4 days officials would do little else but campaign for Mr Prentis.

Linda Perks was suspended by the president of the union. But the judge says:

“The subsequent leisurely disciplinary proceedings of Ms Perks and outcome do not inspire confidence or serve as a deterrent for future overzealous officers. Some might think the move to National Secretary in Head Office on unspecified strategic projects retaining all pay and benefits represents reward rather than punishment, though she has endured the imposition of a final written warning.”

The judge is asking the union to review its procedures and set up a police for whistleblowers – which the union does not have – despite relying on whistleblowers from other public bodies to provide it with information.

” Work is also required to restore trust amongst its Greater London members following the activities of the regional secretary and the RMT ( Regional Management Team ) which have done so much damage to the Union’s reputation both internally and externally.”

The union’s response is this :

“UNISON welcomes the assistant certification officer’s decision to uphold the result of the 2015 general secretary election and reject the call from the complainants that there should be a re-run. The union’s development and organisation committee will be now be considering the ACO’s comments.”

It strikes me that though the union escaped an election rerun for such an important post – that it does need to put its house in order. Unions play an important part in a democracy in exposing appalling conditions and treatment of workers in  this country and abroad. They must be seen to be squeaky clean in the way they run their  affairs or their own reputations will be damaged. They can’t fight causes  against rogue employers  if the break their own rules or try to fix election results.

I have also written about this in Tribune magazine.

 

 

 

Revealed: Faked bills and dodgy deals How Assetco conned auditors and ripped off London and Lincoln’s firefighters

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A London fire engine then owned by Assetco

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The scandal that led to the huge £3.7m  fine ( reduced to £2.4m after co-operation) against  accountants Grant Thornton and ex  partner Robert Napper is revealed in a dry 56 page report by the Financial Reporting Council.

The biggest con by the privatised company  Assetco responsible for  owning and maintaining the capital and Lincolnshire’s fire engines was in faking additional cash payments from London’s fire brigade when it was asked to do  more work.

Directors of the company took advantage of three extra requests that were approved by London fire brigade – involving new equipment for fire engines and emergency training for 700 of the capital’s firefighters.

In all three cases they fiddled the books to boost the value of the company to shareholders and lied about the cost of the contracts to  gullible auditor Robert Napper and  accountancy firm Grant Thornton.

The London fire brigade wanted its engines to be equipped with new foam pumps and thermal imaging cameras. Under the privatisation deal they could charge large sums of money per month  under a  leasing deal for fitting this equipment. But the greedy directors were not satisfied with this great deal. They decided they wanted icing on the cake and claimed even more to make their company look more profitable. And not just a few pence -literally millions of pounds.

The new foam pumps meant that Assetco could and did charge an additional £2.6m to London fire brigade. But the directors claimed that additionally they were charging London fire brigade another £46,975 a month from April 2009. This produced promised income of another £4.991 million over the next 14 years. But Assetco never even sent an invoice to the London fire brigade. for these sums. It was a complete fake – the money did  not exist and the auditors didn’t spot it.

The same applied to the thermal imaging cameras. The 140 cameras were leased to London fire brigade at a cost of £331,443 a year or £27,620 a month.  But then the directors told the auditors that it had cost over £1m to purchase and fit the cameras and that the London fire brigade was paying over £57,000 a month. This generated a total of  over £5,875m over 13 years. Again this was a complete fake and it would have shown a profit margin of 80 per cent. This went unchallenged by Mr Napper despite queries by his team.

Finally they fiddled the emergency training programme for 700 firefighters. They claimed they were receiving another £71,000 a month for ladders and hoses and guards that they were already were being paid under an existing contract.  They also fiddled the costs. They said it would only cost the company £2m to provide it over five years. In fact it was over £6m.

This catalogue of deceit was aimed at inflating the value of the company. It was particularly despicable because the directors were using the need to improve London’s  fire fighting capability as a vehicle to fiddle the books. But that was not all they were doing and I will come back to it in another blog.

 

 

 

 

 

Election 2017: Prim Headmistress v Cool Grandad

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General elections should be all about policy rather than personalities. But what about the non political vibes that may decide how you cast your vote? And why is Jeremy Corbyn rather than Theresa May such an unlikely icon for younger voters?

Theresa May

Prim Headmistress Pic credit:BBC

The impression I get of Theresa May is that she is a retro figure who would love to turn Britain back when she was born in the 1950s – the days when the Ford Popular was the car for the aspiring masses and yes, we had lots and lots of grammar schools.

Her demeanour is everything like the prim and prissy heads of old single sex grammar schools who ruled the roost, took no prisoners, and bullied the staff as well as the pupils.

They had a very narrow vision of Britain based on God, Queen and Country and thought girls should be well mannered ( no swearing), academically bright  and get a professional job.

It is no wonder then that she has made grammar schools the centrepiece of her 21st century education policy – they reflect her own image and values. They also co-opted a very small section of  academically bright working class fellows – just to make sure the great unwashed lost any aspiring leader who  would foment dissent and acquired the right middle class values.

As a head of  a girls grammar school she would have eschewed violence- caning was for men – but anybody who was naughty would be put  in detention  and made to write lines.

I imagine as PM she would love to punish the millions of Remainers in Britain by making them stay in their homes for an hour and write ” I love Brexit” 100 times until they were forced to agree.

Her views on immigration are also very 1950s. She is not racist but she is obviously missing the almost exclusively white grammar school classroom – with just the odd aspiring West Indian and Asian to add a bit of flavour and hopefully  imbibe middle class values. Which is why we get the tens of thousands mantra rather than free movement.

I wonder what she really thinks of the internet – which allows free rein to any expression – given she wants to control  what is said – something that even China finds difficult. It reminds me of what one angry director said about me criticising his product – you ‘re quite at liberty to moan about it in the pub but you shouldn’t put your views online for everyone to see because it damages my company.

None of the above is likely to appeal to the  majority of the young who like Britain being a tolerant, open, multicultural and diverse place and don’t want to be bossed about.

Jeremy Corbyn Pic Credit BBC

Cool Grandad Pic credit:BBC

Which then brings me to Grandad Jeremy. By rights he shouldn’t be an obvious icon. Every idea and political stance he had is supposed to be old hat – like renationalisation of the railways and saying trade unions are a good thing. The youth have been told for years by the Sun and the Mail  he is an extremist and  supports dangerous terrorists and has radical policies that will destroy Britain.

But I suspect they have been surprised by what they have seen. It does not marry with what they have been told. To them he must look more like a thoughtful grandad who has retained his youthful idealism. They may not agree with everything he says but they respect him for sticking to what he believes and not being phased by strong criticism or bossy interviewers.

Also young people – being young – are normally full of idealism themselves – they are not naturally bitter and twisted and don’t hate the present Britain they live in. They might like the fact that as a politician he doesn’t do personal abuse. And they might agree that indiscriminate bombing of civilians is not the way to ensure lasting peace.

The Establishment may laugh at him having an allotment or wearing home knitted jumpers but I suspect that cuts no ice with the young – whose grandads may also have allotments and have granmas who can knit.

It is this underlying contrast that I suspect has caused a bit of a sea change in the expected outcome of the election – which on day 1 looked a slam dunk for the Tories with a majority of 150 to 200. It may still not change the ultimate result but it is no longer clear cut and there are 11 days to run.

 

 

 

 

 

 

 

Fined £3.5m for professional misconduct: Grant Thornton approved dishonest accounts for London and Lincolnshire’s privatised fire engines

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Grant Thornton: A big fine for professional misconduct Pic credit: Wikipedia

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In 2011 this blog was involved with the Fire Brigades Union in investigating the handing over of London’s and Lincolnshire’s  fire engines to a private company called Assetco.

The company nearly went bust  in 2011 owing £140m. Shareholders and banks hoping to make money from privatising the emergency services lost millions and small shareholders were ruined.

The  City Hall Tories under Brian Coleman, then  the elected chair of London’s fire authority now nowhere in public life, saw the  flagship policy as a future blueprint for privatisation. Instead it was a disaster compounded by an Old Etonian baronet buying London’s fire engines for £2  from Assetco only to go bust himself leading to another company taking over.

Now six years later the grim and unsavoury truth has come out. A report from proceedings taken by the Financial Reporting Council against the auditors of the Assetco, big accountancy firm, Grant Thornton, and the accountant who audited the company Robert Napper,  has led to a £3.7m fine for  both of them for professional misconduct. Neither Grant Thornton nor Mr Napper made any financial gain out of the scandal.

The facts are staggering. Over two years Grant Thornton   were found to have committed no fewer than TWELVE  cases of professional misconduct which meant the accounts presented to the public were mainly fictitious. Robert Napper was found to have  ELEVEN cases of professional misconduct.

As the report says: “This misconduct adversely  affected or potentially adversely affected a significant number of people in the United kingdom.”

It points out shares were trading at £6 during this period and fell to £1 in 2011 when the real situation was known. The report adds: ” The share price in 2009 (£6) reflected financial statements that contained an inflated balance sheet and included some significant revenue that was fictitious.”

An accompanying report reveals the scale of the dishonesty and cover ups. They range from fictitious payments amounting to millions of pounds from City Hall to buying up a firm for a relative  with shareholders money and creating a rental firm that let property out to directors. So extensive was the deception that I intend to use further blogs to describe in detail what happened.

As the report says: ” GT and Mr Napper were deliberately misled by AssetCo’s  management but the exercise of proper scepticism would have led to dishonesty being uncovered.”

Grant Thornton  was fined £3,500,000, reduced to £2,275,000 after  they co-operated with council and given a severe reprimand;

Mr Napper was fined  £200,000, reduced to £130,000 after  he co-operated  with the inquiry

Grant Thornton also had to pay £200,000 as a contribution to the Executive Counsel’s costs.

Mr Napper, an accountant with 23 years experience, was seen to have acted so badly that they have also recommended he be barred for three years from membership of his professional organisation ( the ICAEW –Institute of Chartered Accountants in England and Wales) for breaching  their code of ethics.

Mr Napper, from South Oxfordshire has since retired.  The Executive Counsel of the FRC said: ” The misconduct of Mr Napper , in its totality, is so damaging to the wider public and market confidence in the standards of members and in the accountancy profession and the quality of corporate reporting in the United Kingdom that removal of the member’s professional status is the appropriate outcome in order to protect the public or otherwise safeguard public interest”.

Further inquiries by me show Mr Napper in his Linked In page was publicly  endorsed by seven people including  Perry Burton, head of London audit, for Grant Thornton. and Natasha Pettiford-White, an executive assistant at Grant Thornton. Mr Burton’s recommendation would carry considerable weight as he is an auditor of 20 years experience.

Gareth Rees QC, Executive Counsel to the FRC, said:
“The Respondents have admitted widespread and significant failings in their audit work, and GT specifically has accepted there were serious failings in the execution of certain aspects of the firm’s quality control procedures. This misconduct is rightly reflected in the seriousness of the sanctions, such as the exclusion of Mr Napper from membership of the ICAEW ( the accountants professional organisation) and the fines on both Respondents.”

Matt Wrack, general secretary of the FBU, said :

“It is mystifying that central government did not spot this scandal, when the Fire Brigades Union and firefighters themselves were warning about it for years.  Leading politicians and fire service managers were responsible for allowing a gang of spivs to take over essential equipment and vehicles, the property of the people of London and Lincolnshire.  Both of the authorities for these regions need to investigate fully to ensure this never ever happens again. ”

Grant Thornton were approached and did not reply. I have written about this in Tribune magazine.

In my view this shows that one of our big accountancy firms was derelict in its duty in protecting the public from people who obviously wanted to fleece shareholders and took no care in auditing the books of people in charge of vital emergency  vehicles in London  and Lincolnshire. It also shows the real dangers of privatisation and we cannot  trust big accountancy firms to act in the public as opposed to their private commercial interests. You will see the scale of the scandal in future blogs.

 

 

 

 

 

Why the Tory plan to axe pensioners fuel benefits is as flawed as Labour’s Ed Balls up

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Tory manifesto

Tory Manifesto: An Ed Balls Up on fuel payments for pensioners

 

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This  is the extract from the Tory manifesto relating to plans to axe the £200 a year payment to all pensioners and the £300 a year payment to those over 75 . The plan is stolen from the Labour manifesto of 2015 and was originally proposed by Ed Balls to “save £100m “.

we will target help where it is needed most.So we will look at Winter Fuel Payments, the largest benefit paid to pensioners, in this context. The benefit is paid regardless of need, giving money to wealthier pensioners when working people on lower incomes do not get similar support.

So we will means test Winter Fuel Payments, focusing assistance on the least well-off pensioners, who are most at risk of fuel poverty.

Fine words but very difficult to implement. Why?

Four years ago I investigated how Labour could implement the same policy – and found it unfair and unworkable. This is what I said:

“As a punter and pensioner who pays higher rate tax because my freelance earnings top up my pension I expected to be one of the people targeted by Ed Balls. In fact it will have zilch effect, a load of old Balls if you like.

Let me explain why. The fuel allowance is currently paid to individual pensioners with a cap of £200 per household. So for a start I only receive £100 of  fuel benefit. The other £100 goes to my wife, also a pensioner, who is a standard rate taxpayer. So his planned saving will be halved anyway in my case.

But it is actually worse than that. My wife became a pensioner before me and was entitled to the full household fuel allowance in her own right. So when I was on The Guardian, ( then on just over £80,000 a year) our household was receiving then  a £200 fuel subsidy for a short time. What will happen under the Balls changes is that my wife will get back the full benefit of £200 – so we will still continue to receive exactly the same subsidy.

I suspect I am not alone. I know of many people around me in the shires, where in traditional families of that generation the main earner is the male who will  pay high rates of tax. His spouse who brought up the children, and did part-time work instead, would be a  standard rate taxpayer. These wealthy households will continue to get the subsidy.

Ed Balls

Ed Balls in more serious mode

Now Ed Balls could get round this by imposing a household cap equivalent to the income level set by the higher rate of tax. But if he does this he will run into fresh problems.”

I chased this up with the Inland Revenue.

They confirmed four years ago that they do  not collate figures showing how many households have higher rate and standard rate taxpayers who are currently eligible for winter fuel payments. They do not need to collect the information as taxpayers are assessed individually. So they don’t know the breakdown. The only figures they have are the number of higher rate taxpayers who are pensioners. I doubt anything has changed.

Theresa May

Theresa May:Leader of the Tory party. Pic credit:BBC

So how are the Tories going to do this. They could scrap the present system and go back to the old fashioned 1950s style tax system- where the man had to fill in the form for the household. But that would be deeply regressive, anti feminist and take no account of modern relationships where couples may not even be married or have  a gay partnership.

They could limit payments only to those claiming pensioner credit – removing all other pensioners- but that would hit the JAMS – just about managing pensioners with a huge hole in their income and be deeply unpopular.

Or they could  say every person has to fill in a means test form – which means even if it was done on line – have to employ more staff at a huge cost just when they want to axe more civil servants.

It ain’t going to work and will be deeply unpopular and  be full of anomolies.  In other words Theresa May has just created another Balls-up.