Assetco and MetPro: Stains on London’s political masters

Coleman and Assetco: stain on London fire Brigade

Metpro-stain on Barnet Council

Politicians at the London Fire Brigade and Barnet Council should be hanging their heads in shame for awarding multi-million pound contracts to two private contractors, MetPro and Assetco – one of which is now bankrupt and the other only valued as junk  stock .

Both scandals have featured on this site before but the situation is going from bad to worse.

An extraordinary statement from Assetco -owner of London and Lincolnshire’s fire engines and a strike breaking auxiliary force for London’s firefighters – basically admits that it does not have the cash any more to meet capital repayments needed to run its contracts with London, Lincolnshire and the Middle East.See http://bit.ly/mP5WFa .

The key paragraph reads:  “The main issue that the business is facing is the capital repayment profile not matching the long-term nature of the Company’s contracts. Whilst the Company is cash generative and can meet its interest costs, it does not generate sufficient funds to meet all the repayment of capital as currently scheduled. The banks are supportive regarding the short-term financing situation and are awaiting our proposals on a financial restructuring but in the meantime we are in breach of our banking arrangements.”

This sorry state has been brought about by its former founder John Shannon who last month was summarily dismissed by the company.

Shannon had landed the company in court facing a winding up order for millions of pounds of unpaid taxes from Revenue and Customs-something they don’t do lightly- and a huge £1m unpaid legal bill from Nabarro’s.

No sooner had these been settled by diluting the share price in a £16m offer to new investors then more grief was to follow. The share price  is now down to a junk figure of 4.65p a share –  when it once sold at 66p. Market capitalisation at £11m is now less than the value of its PFI contracts in London and the Middle East.

Yet Shannon and his former co-founder are trying to recover £1.1m from the collapsing firm while facing a counter-claim from Assetco for £8m for ” breaches of fiduciary duties”. A bloody legal battle  is on the way distracting it from its business.

 All this might not matter if they did not own all the fire engines  in the capital and Lincolnshire. But the London Fire Brigade has reacted to the crisis with breath-taking complacency. Gareth Bacon, performance management chair, believes there is no serious problem.

 Brian Coleman, who was wined and dined by Shannon as well as receiving a gift of a £350 Harvey Nicks Christmas hamper, is silent about the fate of his dining companion.

Yet consider this.Would it be appropriate for a public body to avoid paying taxes and be so reckless with its finances so it can’t repay its capital loans to banks? And for the authority to be in a such a bad way that it has had to hire financial staff to sort out the mess. Heads would roll.

Barnet Council is in a similar mess over the bust private security firm MetPro who owed £250,000 to Revenue and Customs for unpaid tax, VAT and even pay roll tax deducted from its employees.

 The fate of this company would not have come to light if it had not been so reckless by filming bloggers and members of the public without their knowledge or permission as they came to watch the council implement cuts.

But now Barnet have admitted they were UNAWARE of the financial plight of the company which got £1m of business and glowing references from them on its website  (now finally removed) and appears to have avoided any public tendering process to get the business.

There is a link to both these scandals and he is called Brian Coleman. He has been the key advocate of the government’s privatisation agenda and cheerleader for the company -particularly the disgraced John Shannon. He is also the big wheel on Barnet Council- Cabinet post for the environment- and must have had some knowledge of the bankrupt MetPro. And there is even a bit part for the complacent Gareth Bacon in all this – his division at  Dutch consultants MartinWardAnderson has made £75,000  (£12,600 a month) over just a six month period in 2010 – providing temporary finance staff for Barnet.

Can anyone do anything about this? Yes- firefighters employed by the London Fire Brigade could ask for a due diligence investigation by the district auditor Michael Howarth-Maden over the handling of the PFI contract, alleging the authority had employed a company involved in proven tax avoidance

 Similarly residents of Barnet could demand an investigation by its external auditors,Grant Thornton into the hiring of MetPro. Here the crucial question should be -how they got the contract in the first place.

It is really time action was taken – the scandalous behaviour of both firms is a stain on London’s politicians.

Armchair Audit: David Cartwright Boris’s bon viveur fireman

Bon Viveur Tory: From CND to East India Club Pic- courtesy London Fire Brigade

Boris Johnson’s reform of the London Fire Brigade is going to rely heavily on the views of David Cartwright, one of the least known of the Mayoral appointees. This looks into his background.

David,61, is a former assistant commissioner of the London Fire Brigade , a fire consultant, vintner and chairman of  the East India Club, a gentlemen only club dating from Britain’s colonial past and a favourite watering hole for well-connected public schoolboys. He once wore a CND badge: he is now a card-carrying Conservative.

HIS INCOME

From the taxpayer

Mayoral appointee allowance as member of London Fire Brigade                                                                                                                                                       £7750

Firefighters pension ( paid since 1999 retirement at the age of 50,  indexlinked from 2004 )                                                                                                                                                       £37,500 +

Total:                                                                                                                                                      £45,250 +

Private Income:

Consultant to Eurocopter, subsidiary of Dutch defence contractor, Eads

Co-owner of Cartwright Brothers Vintners Ltd

Director, Viaduct Enterprises Ltd who partly own Bedales deli and wine bar in Borough market

Chairman, East India Club (unpaid)

EXPENSES

Commendably Nil.

HOME

Joint owner with wife, Kathyrn of detached home in Mottingham, London SE9 with outstanding mortgage from Bank of Scotland.

LIFE

Son of pacifist Anglican priest,supporter of CND and educated  at Colfes Grammar School 1961-67,. then voluntary aided boys school now public school. Became a fireman rising through ranks to assistant commissioner.Under Ken Livingstone,progressively followed policy of recruiting black and (after qualms) women firefighters. Full interview given to Modern Communications at http://bit.ly/gZoIv2 .

He has growing outside interests. He is consultant to Eurocopter, who are based at Oxford airport in Kidlington and are engaged in leasing helicopters to police forces and ambulance services. His connection with them arose when the London Fire Brigade considered using helicopters in the 199os. See article in Flight International,http://bit.ly/f9ZEng.

On this he says: “The London Fire Brigade have no helicopters and I have not tried to sell helicopters to the London Fire Brigade. ..I have acted properly in this matter and took formal advice from the Clerk to the Authority before I took up the post of Mayoral Appointee.”

His more jolly appointments include his directorship with his brother,David and nephew,Richard, of  the City based vintner Cartwright Brothers. Unfortunately for him the business is more in the red than laying down more red. Its last accounts show losses of nearly £200,000 despite raising £100,000 share capital. Its directors have borrowed over £100,000 from the business between them. He says:”It has not been easy and I sincerely hope it is now turning around, but the recession has not helped. I am optimistic! ”

He has an interest but no management responsibilities for a popular wine bar and deli in Borough Market called Bedales – set up by market traders. But sadly that will eventually be bulldozed to expand Thameslink rail commuter services.

He is chairman of the  male only East India,Devonshire and Public Schools Club, whose  5255 membership dates back to Prince Albert and the colonial East India Company and is based at St James Square,London. Membership depends like the unreformed House of Lords  on the male hereditary principle (father can propose son) or on recommendation from public school heads. Women can come in as guests and David Cartwright has managed to improve the dress code so they can wear smart trousers and are no longer forced to dine on Brown Windsor soup and indifferent meat. You can get a flavour of the club on its website http://www.eastindiaclub.com/ . Past members include Denis Thatcher ( Maggie could only enter as a guest), Randolph Churchill, and Austen Chamberlain. Current members include Lord (Sebastian) Coe, UKIP leader Nigel Farage, Robert Halfon, Tory MP for Harlow, ex West Midlands police chief, Lord ( Geoffrey) Dear and industrialist Professor Colin Seabrook.

Cartwright defends the male only status quo: ” This is entirely within the letter and the spirit of the law. The members can vote to alter this at any time, should there be a sufficient number wishing to do so. Currently there appears to be no desire to do so”

According to the  latest report members consumed £1.2m of food and drank and smoked their way through £661,000 of  alcohol and tobacco. The club has laid down port worth nearly £400,000 and vintage wine worth £335,000.

No wonder one of the guests entertained there twice by David Cartwright was London fire brigade chairman Brian Coleman, never knowingly undernourished at other people’s expense.

VIEWS ON FIREFIGHTERS

Has distanced himself from Brian Coleman’s view about firefighters being ” thick and thugs”.

” I am fiercely proud of the London Fire Brigade, with two serving sons on the uniformed side. I am also proud of my service to London in this regard. 99% of firefighters are honest, decent loyal and committed individuals who provide a unique service to London, often in the face of personal danger. I hold them in the highest regard. I believe the Chairman, Brian Coleman was referring to some of the hotheads on the picket line – some of whom I understand were not actual firefighters.”

Barnet’s new pioneering Tory policy: Curb free speech

Anthony Finn-permission to speak ,sir? Pic -courtesy Barnet Times

Barnet Council already notorious for cuts as a no frills  Easy Council  – is about to make dubious history as the first borough to curb free speech.

New proposals now sent to a committee  will take away most councillors right to speak at future council meetings unless the Tory mayor, Anthony Finn, gives his permission.

The proposal is part of  a plan to “streamline” debate and procedures  by the ruling Tory group so presumably councillors will have little opportunity to protest at the growing number of cuts and increased parking charges residents have to face.

The Tory group also wants to bar discussion about the work of the Cabinet at the full council and change the scope of debates.

But the most controversial proposal comes from former Barnet Tory mayor Brian Coleman which limits the right even to speak.

His motion says: “To amend the Council Procedure Rules to grant a reserved express right to only the Leader of the Council and the Leader of the main Opposition Group or their spokespersons to speak on Motions, Policy Items and Committee reports at the Council meeting. All other speakers would be called at the discretion of the Mayor.”

The plan from a £128,000 a year  council allowance man  keen to become the new Tory Taliban  follows his humiliating climbdown last month (see earlier blog) when Boris Johnson slapped down his proposal to ban questions to the chair of the fire authority,one Brian Coleman.

Then he was exposed by blogger,Adam Bienkov. This news comes courtesy of another blogger, Mrs Angry, whose Broken Barnet website http://bit.ly/i13ngn  regularly reveals the calamitous state of affairs in the borough.

The proposals mean  as Labour is the official opposition, the government’s coalition partners, the Liberal Democrats, could be denied a voice in the borough as could any dissenting backbench Tory. One extraordinary result is that Monroe Palmer, a recently ennobled Liberal Democrat councillor, could have more rights to express himself in the unelected House of Lords than as an elected Barnet councillor.

All this is hardly in line with David Cameron’s promise of more transparency and proper debate.

Barnet Council’s head of media, Sue Cocker, said: ” The council cannot comment on the substance of the report as these proposals have come forward from the Conservative Group. ”

“A review group will be considering the issues and will report back any proposals to a future meeting of special committee (constitution review).”

Richard Robeson, spokesman for the Conservative group on Barnet, would not enlighten people on the proposed curbs. The Facebook friend of Brian Coleman said tersely: ” We do not talk to bloggers or journalists “. If you can do better than me try him at work on 0208 359 2004.

You might ask what is going on by emailing the mayor at cllr.a.finn@barnet.gov.uk.

In future there may be a better way of protesting. The council under legislation will have to provide soon a facility for e-petitions from residents raising issues. How about tabling a motion calling for the council to restore free speech for its own elected councillors.

Netroots: Blogger’s victory safeguards public scrutiny

brian coleman -thwarted by a blogger.Pic courtesy: Evening Standard

Those who went to the TUC’s Netroots conference  last weekend should take heart from the success of one of their active bloggers only days after the event.

Adam Bienkov, aka Tory Troll, spotted that Brian Coleman, chair of the London fire authority, had tabled a paper changing arcane standing orders to abolish the right of any of the elected representatives to ask him a question on fire policy. This was to happen at the same meeting that is expected today to tear up a carefully negotiated settlement with London firefighters over their working hours.

 Brian Coleman, no stranger to this blog, was going against Conservative policy to promote transparency and accountability in public life. He would have probably got away with it without the tenacity of Adam. He published the facts,linked the report on his website and it got taken up – by print media in the London Evening Standard and the Guardian Diary. Soon it was on local radio airwaves and this morning was on regional BBC Breakfast TV.

The result: a complete climb down when Boris Johnson, to his credit, effectively repudiated Coleman, and publicly endorsed the party’s policy of openness in City Hall.

This is worth highlighting because  it  can be replicated with the new Netroots network. Other bloggers can keep an eye on their local council by looking up the agenda of council meetings on the council website  before they take place. And if they see anything nasty, highlight it and get in touch with the local media. Turning sunlight on dodgy council decisions can be really effective. Well done, Adam.

Armchair Audit: Brian Coleman- One of Britain’s highest paid councillors

This is the first of an occasional series of blogs auditing the work and wealth of public figures

Brian Coleman - a councillor with expensive tastes

who are shaping the destiny of thousands if not millions of people during the age of austerity. Taking my cue from David Cameron, who will be thrilled with the idea of this blog, it is part of making sure we are all in it together.  I am sure he will applaud the  checks on those at the top. Everything here is obtained from public documents and websites. Nothing, Andy Coulson please note, has been acquired from tapping personal mobile phones.

 Tory Brian Coleman, 49, has been in the news over a bitter dispute with London fire fighters over their hours. He accused them of holding down ” two jobs” and he brokered bringing in a private company, Assetco, to fight fires when the firefighters went on strike. The company is now in serious trouble-see other blogs on Assetco on this site.

HIS  INCOME

 Brian Coleman holds down four jobs all funded by the taxpayer. They are:

Member of the London Assembly                                                      allowance: £53,439

Cabinet member Barnet Council                                                         allowance: £38,177

Chair London Fire Brigade                                                                   allowance: £26,883

Chair LGA* fire services management committee                    allowance: £10,365

Grand Total from the taxpayer                                                                                £128,864

*Local Government Association, a voluntary body funded by councils from council taxpayers.

EXPENSES

Brian is a great expense claimer never knowingly underclaimed. He can claim for expenses for three of his four jobs – the LGA don’t allow him.

Last financial year his expenses as a London Assembly member and chair of the London fire authorityreached in excess of £3500 and that does not include his Barnet expenses which he declines to disclose on-line. Included in this are claims for the congestion charge – a tax that MPs are even barred from claiming and which might be challengeable by Revenue and Customs.

 He is a big patron of London cabbies claiming once over £10,000 a year  from the London Assembly on trips (2006-07). He is now more modest – claims have varied between £8000 -plus a £1700 travel card (2007-08) and £345 for 2009-10. All from the taxpayer.

His fire brigade expense claims are not much different.These include a £119 taxi fare to the Fire Service Awards Ceremony in  May 2009 and £143 to attend Westminster’s Lord Mayor’s reception for the Lord Mayor of London. He also spent £402 on a  rail ticket to go a LGA conference in Manchester. Little difference in 2011 -with a £145 taxi fare for him and his mum to go to a  firefighters service of remembrance  and meetings in London.

His red letter claims day is May 12 last year – where he managed to claim car mileage, congestion charge and over £67 in taxis  for a dinner -all on the same day.

For the current  financial year he is already on track to meet his usual high spending record- having claimed £1650 so far from the London fire authority. This included £145 for taxis one one day to go to St Pauls and back for the National Firefighters Remembrance Service in September and another £155 to go to and from a remembrance service for a colleague.

This year he has been entertained to lunch by two prominent Tory lobbyists – unsurprising given it will be election year in 2012 for the London assembly. They are Alex Challoner, managing director of Cavendish Place Communications, who masterminded Steve Norris’s ill fated bid to be London mayor, and Tony Hutt, of Four Communications, who is a lobbyist for major planning schemes in the capital.

His gifts include four dinners (three of them before the company won the contract) and a £350  Harvey Nichols hamper from the head of AssetCo, John Shannon, the company which has a £9m PFI deal with his authority and provided strike cover.

On Christmas Day he started to eat and drink everything in this picture.

Brian Coleman’s huge Christmas hamper: courtesy HarveyNichols

You can keep abreast of his latest expense claims and gifts by clicking these links  http://bit.ly/bRWy6Y and http://bit.ly/9IfKHi  for the london fire brigade and http://bit.ly/9DoqLs for the London Assembly. He has opted out of declaring his gifts and expenses at Barnet Council -see http://bit.ly/b5ADWV

He and David Cartwright have also been busy being entertained to £50 a head dinners by  Danish private fire company Falk, and British private outsourcing giant, Serco.

HIS HOME

Brian Coleman represents Totteridge in Barnet but lives in West Finchley, N3.  He is a member  of the Finchley Methodist Church. They are his landlords and his flat has a registered fair rent of  £546 a month since 2008. That is about £125 a week. This is the Valuation Agency document.Scan_Doc0002 . According to local estate agents, the market rent for 2 bedroom flats is £1200 a month in his and neighbouring streets. Mr Michael Giles, the minister in charge of the charity, has declined to comment on the huge difference.

ODIOUS TOAD AND OTHER CONTROVERSIES

Never short of a sharp word. Most of his exchanges are recorded on his wikipedia site.See all on http://bit.ly/dvA5P5

To get an idea of what he is like see this exchange that closed down a council meeting.

http://www.youtube.com/watch?v=xsA2EIVCsPk

 He also has had a spat with single mum who went to him for help but ended up being told to live in the ” real world” when she was faced with a £150 a month rent rise – paying double what Coleman pays on his subsidised flat.

CONCLUSION – ALL IN IT TOGETHER?

Brian Coleman’s  decisions will have a huge impact on thousands of families – both in his campaign to cut back on firefighters terms and conditions of work and his role as a team player  at Barnet Council implementing Easy Council solutions for  residents which will affect the lives of the poor, vulnerable and many of his middle class constituents. He is  going  to curb the right of backbench and Liberal Democrat councillors to speak at council meetings with the backing of the Barnet Mayor.

In the meantime he defends his income and expenses from the taxpayer. 

“I work about 100 hours a week and have had three days off since Christmas. I’m not pleading some special case, just saying that … these salaries are not unreasonable.”

Tell him what you think. You can ask to be his friend on Facebook but he keeps his comments there private.

 You could also  email him. His Barnet Council and London Assembly e-mails are:

I am sure he will be very much in favour of David Cameron’s policy of accountability and be delighted to respond. You can also find on this site armchair audits of Gareth Bacon, chair of  London fire brigade’s  performance management committee and David Cartwright,  the Mayoral appointee to the London fire brigade.

Meanwhile any comments on this blog are welcome.  Contact me if you think who should feature next.