Accountants accused of “feasting on Carillion carcass”

“MPs have accused the “big four” accountancy firms of “feasting on what was soon to become a carcass” as it emerged they banked £72m for work linked to collapsed government contractor Carillion in the years leading up to its financial failure.

Less than a fortnight before Carillion’s auditor KPMG is due to face questions from MPs on two select committees, the accountant and rivals Deloitte, EY and PricewaterhouseCoopers (PwC) submitted evidence to the inquiry.

Responses to questions from the committees revealed that the quartet of firms issued bills worth £71.6m over 10 years from 2008 for work for Carillion, its pension scheme and its government contracts.

Details of accountants’ fees emerged as more than 4,400 former Carillion staff working in prison maintenance, as well as catering and cleaning on military bases were told that they will keep their jobs.

The total number of jobs saved has now reached 6,668, more than a third of Carillion’s 19,500-strong workforce. But nearly 1,000 people have already been made redundant, while a further 11,800 staff still face an uncerttain conditions….”

https://www.theguardian.com/business/2018/feb/12/carillion-jobs-prison-defence-staff

Swire takes on another job: non-executive director of an airport lighting company

Following on from the previous 2 posts, here’s another source of income in the last few months:

“From 18 June 2017, non-executive director of ATG Airports, Newton Road, Lowton St Mary’s, Warrington WA3 2AP:

24 November 2017, received £10,086.72. Hours: 15 hrs. (Registered 05 December 2017)”

Only £1,000 an hour for this one!

ATG Airports describes itself as

“A SAFE PAIR OF HANDS FOR AIRFIELD LIGHTING PROJECTS”
From a simple system controlling a single runway airstrip to the complex multi-runway operation of a major international airport, each and every atg airports airfield lighting control system is designed with the future in mind.”
https://www.atgairports.com

Swire’s latest income – £2,500 per hour advice

From the post below, we glean that Swire recently had a new source of income: £25,000 for 10 hours of advice given to a new company (incorporated in November 2017) “Apiro Real Estate Fund 1 L.P”.

Its website states that the fund “is focused exclusively on the real estate of the UK supply chains, a defensive investment sector that will continue to grow, despite the broader economy, as the penetration of delivery based e-commerce increases.”

Is the fund expecting a problem? “Despite the broader economy” they say.

Its Managing Director is:

“MANAGING DIRECTOR
Shezi Nackvi

Shezi is a highly experienced investment banker who has transacted investments valued at more than USD 1 billion over the last 20 years. He is currently CEO of Peninvest Limited, the Private Office of the Kamel family, one of Saudi Arabia’s most respected business families. As CEO of Dallah Albaraka (Europe) Limited, he also heads up the corporate side of the family’s business. An expert in real estate and private equity transactions, Shezi is an insightful and discreet investor who has worked closely with a wide range of government and business leaders. Previously, he held senior positions with Lehman Brothers, Bank of America International and the Abu Dhabi Investment Company.”

Let’s hope Swire’s £2,500 per hour gave them good advice!

Swire: is this ethical?

This is Swire’s current declaration of interests:

From 9 November 2016, Adviser to KIS France, a manufacturer of photo booths and mini labs. Address: 7 Rue Jean Pierre Timbaud, 38130 Echirolles, France. I expect to be paid £3,000 every month until further notice. Hours: 8 hrs per month. I consulted ACoBA about this appointment. (Registered 16 November 2016)

From 15 November 2016, Deputy Chairman of the Commonwealth Enterprise and Investment Council. Address: Marlborough House, Pall Mall, London SW1Y 5HX. I expect to be paid £2,000 every month until further notice. Hours: 10 hrs per month. I consulted ACoBA about this appointment. (Registered 16 November 2016)

16 November 2017, received £25,000 for acting as adviser to Apiro Real Estate Fund 1 Limited Partnership, 1 Connaught House, Mount Row, London SW1K 3RA. Hours: 10 hrs. I consulted ACoBA about this appointment. (Registered 22 November 2017)

From 18 June 2017, non-executive director of ATG Airports, Newton Road, Lowton St Mary’s, Warrington WA3 2AP:
24 November 2017, received £10,086.72. Hours: 15 hrs. (Registered 05 December 2017)”

https://publications.parliament.uk/pa/cm/cmregmem/180205/swire_hugo.htm

Now read the article below that he penned for Conservative Home – about why people should not be allowed to take selfies for passports but should use photo booths. He says in the article that he ” once chaired” a photo booth company does not say explicitly that it still employs him at a monthly salary of £3,000 for up to 8 hours work per month.

Is this ethical? Is it a conflict of interest? Should the website provide a disclaimer to make his relationship with the company clear?

The article:

A few weeks ago a Belgian court convicted 14 people of falsifying ID documents, some of which were sold to Islamist militants involved in the terror attacks on Paris and Brussels.

For many of my generation fake IDs were about getting into pubs and clubs, or buying a pint and a packet of cigarettes a couple of years before we were supposed to. For this generation, as the families of those slain in Paris, Brussels and countless other attacks will testify, the end results of fake IDs can now be unimaginably awful.

As a former Minister for Northern Ireland and more recently Minister of State at the Foreign and Commonwealth Office I am all too aware of the threats we face at our borders. As a father of two teenagers I am also more than aware that we live in the “selfie” age. You only have to step outside the gates of Parliament to see hundreds of tourists with selfie sticks smiling in front of Big Ben. When it comes to passport and other ID documents, people are increasingly demanding a similar quick DIY approach.

The Passport Office has been testing the idea of selfie photos since April 2016 in line with the Government’s drive to get more business online. The idea was unsurprisingly popular as photos are free, quick and easy to take. Unfortunately it also exposes the passport process to unnecessary risks and it is often difficult for people to capture an acceptable image. Such selfies can easily be manipulated, for vanity or for more sinister criminal purposes, creating convincing false IDs.

Having already allowed the use of self-taken photos for their Passport card, the Irish Passport Office have identified the need and importance to provide a fully secure but easily accessible digital photo upload system. The Photo-Me photobooth has been approved for this process.

France has already rolled out that system. Here in the UK we are trialling a similar system, but it will not be operational until next year at the earliest.

In Ireland the Department for Foreign Affairs is working with Photo-Me International, a company I once chaired and one of the many providers of photobooths in the UK and across Europe. Following the Brexit vote one of the most important areas in need of resolution is the preserving of the Common Travel Area between the UK and Republic of Ireland, a vital aspect of which is commonality in terms of documentation. The DFA is working on an innovative scheme which will mean 90 per cent of the population are located within 10km of a photobooth.

Pictures taken in these booths will possess a number of key security features which smart phones do not. It will be impossible for the photo to have been edited in any way as the encrypted image is always held on secure servers. The images submitted have the highest acceptance level in meeting International Civil Aviation Organization standards which saves a considerable amount of time and money as the need for manual checks is greatly reduced. The images are automatically deleted six months after being taken providing passport providers with 100 per cent assurance the maximum six month old photo regulation is complied with. In addition, the technology present in the photobooths is already fully scalable for future biometric security regulations such as 3D, Iris reading, signature, fingerprint and facial recognition. This service will also be available in selected booths across the UK but for Irish citizens only. Importantly there is also no cost to the Government.

We already know that the number of forged passports seized at our borders is on the rise, with more than 1,000 confiscated a year. Britain’s exit from the EU gives us a golden opportunity to redesign and modernise our passports. It might be nice and convenient if we could upload selfies for our passport pictures. However, we live in an incredibly dangerous world. We owe it to our citizens to do everything we can to make sure our passport system is as secure as possible to help combat ID fraud and its sometimes deadly results.”

https://www.conservativehome.com/platform/2017/02/hugo-swire-brexit-gives-an-opportunity-to-improve-our-passport-security.html

Swire’s Conservative Middle East Council accused of bias towards Gulf Arab states

In a long article about the group, whose chairman Hugo Swire receives a salary of £2,000 per month, a number of allegations are made about CMEC, a couple of which mention Swire by name:

“CMEC’s rapprochement with the UAE extends beyond the Gulf to the country’s ambitions in north Africa. There it has become a key supporter of the Dubai’s controversial foreign policy towards Libya, backing Field Marshal Khalifa Haftar, a notorious warlord and one-time ally of Muammar Gaddafi, rather than the internationally recognised government in Tripoli.” …”

and

…”Some of CMEC’s donors also seem to have links to Libya’s former leaders.

Marwan Salloum is registered as a director of CC Property Company Ltd and is also owner of Consolidated Construction Company, the largest engineering firm in the Middle East which has interests in Libya.

Electoral Commission records show that CC Property Company Ltd made donations of £30,000 ($42,000) to CMEC in March 2017 and £17,000 ($24,400) in donations in 2011 and 2013.

Salloum is a former close friend and business associate of Saif al-Islam Gaddafi, son of the deposed leader. The pair reportedly enjoy each others company. During the revolution, photos emerged of Salloum partying with Saif on a luxury yacht in Brazil.

Crucially, Haftar is also supportive of Saif and once said of him: “If he wants to play a political role, there’s no problem,” also adding: “I have nothing against him, on the contrary, he is welcome.”

In June 2017, Saif was released from prison. He now lives under the protection of Haftar, despite being wanted for war crimes by the ICC.

The impact of the CMEC report on Libya is hard to gauge. Hundreds of such reports are published around Westminster each year. But such lobbying can have consequences.”

and

“The ties between Bahrain and CMEC go back further still. Each year, CMEC organises a delegation of MPs to attend the Manama Dialogue conferences, which take place under the auspices of the International Institute for Strategic Studies (IISS). At least 30 percent of the think tank’s budget comes from the Bahraini government, according to rights group Bahrain Watch.

The conference is an international forum for discussions of foreign affairs, but also acts as a soft power initiative for the Bahraini elite. According to Bahrain Watch, CMEC is “a central player in the visits” each year. Kwarteng is the only Conservative MP to have attended all Manama Dialogue conferences since 2011.

and

“Perhaps the most generous CMEC donor has been the property developer and financier David Rowland. A regular donor to the Conservative Party, he has given more than £465,000 ($660,000) towards CMEC’s running costs, including £60,000 ($85,000) in October 2017.

Rowland has close ties with the leaderships of both the UAE and Saudi Arabia and is presently in the process of creating a joint banking venture with the sovereign wealth fund of Abu Dhabi, Mubadala.

Rowland has also helped to secure multi-billion pound defence deals between British firms and the Saudi Arabian government. In 2011, Rowland offered his private jets to Prince Andrew for free, while the British royal visited Saudi Arabia to help secure deals for BAE Systems.”

and

“A second key donor with links to Saudi Arabia is Rosemary Said, wife of Wafic, a billionaire and key fixer in the al-Yamamah deal which delivered billions in British military equipment manufactured and maintained by BAE Systems to the Saudi armed forces from the mid-1980s onwards under the government of then-prime minister Margaret Thatcher.

Rosemary Said donated £50,000 ($71,150) to CMEC in September 2016, with further donations to CMEC of £20,000 ($28,460) in 2015 and £100,000 ($142,310) in 2008.

In June 2016, she also made a £10,000 ($14,230) donation to CMEC chairman Hugo Swire, which helped him get re-elected as an MP..”

and

“… the group was quiet on the most momentous decision to affect the Palestinian dispute of late – Donald Trump’s order on 6 December 2017 to move the US embassy in Israel to Jerusalem.

CMEC is yet to issue any formal statement, other than a tweet reporting the news on their Twitter feed.

A second tweet showed former chairman, Alan Duncan, now in his capacity as a government foreign office minister, giving a TV interview expressing the government’s disapproval. … But from the other CMEC officers there has been silence, including Docherty – now serving as vice chairman of CMEC.

There has also been silence from Kwarteng, despite publicising his CMEC report on the Libya migration crisis earlier in the year; and Hugo Swire, chairman of CMEC, who did not respond to the news on his otherwise active Twitter feed, even though he was attending a speech by Johnson, specifically about the Middle East, on the same day.”

and

“Swire told MEE it is wrong to think that CMEC has failed to stand up for Palestinians, pointing to the fact that the organisation’s affiliation to the Conservative Party made it subject to very strict funding rules.

He also said that CMEC had not acted as an advocate for British support for Haftar in Libya. “We don’t have a corporate view on these things. We do not lobby. We are merely a facilitator to encourage Tory MPs to get a better understanding of the Middle East as a whole.”

http://www.middleeasteye.net/fr/node/68869

Note: this entry was amended to Conservative Middle East COUNCIL.