“Government proposes shake-up of Local Enterprise Partnerships”

More to folliw …

On 24 July 2018, with little or no publicity, the government brought out a review of Local Enterprise Partnerships:

https://www.gov.uk/government/publications/strengthened-local-enterprise-partnerships

“The review proposes a number of changes to boost the performance of LEPs, increase their diversity and ensure they’re operating in an open and transparent way. These include:

up to £20 million of additional funding between 2018 to 2019 and 2019 to 2020 to support the implementation of these changes and embed evidence in Local Industrial Strategies

supporting LEPs to consult widely and transparently on appointing new Chairs and improve board diversity

an aim for women to make up at least one third of LEP boards by 2020 with the expectation of equal representation by 2023

a mandate for LEPs to submit proposals for revised geographies including removing situations in which 2 LEP geographies overlap … “

https://www.gov.uk/government/news/government-proposes-shake-up-of-local-enterprise-partnerships

“New MP’s EXPENSES SCANDAL: MP’s fiddling the books will be allowed anonymity”

“MPs who are accused of cheating on their expenses will be able to remain anonymous under rules it has emerged, just after a record ban was handed to Ian Paisley after he went holidays funded by Sri Lankan Government.

The Government has been accused of trying to push through the change under the radar.

It would hide the names of all MPs under investigation and the Government has been accused of “protecting the sensitiveness of politicians”.

Since the expenses scandal in 2008, all MPs under inquiry are automatically published on the website of the Parliamentary Commissioner for Standards.

The new system would mean the process would be anonymous.

Further, the commissioner would not be required anymore to automatically publish the verdicts.

However, the Commissioner could decide to make decisions and complaints public if it is deemed to be in the public interest.

Ian Paisley was handed a record 30-day suspension from the House of Commons after it was revealed by the Daily Telegraph he went on two family holidays funded by the Sri Lankan government.

If the new change was already implemented the public may not have found out about the case of Mr Paisley.

Andrea Leadsom, Leader of the Commons, published the results as she is also head of a cross-party group set up last year after the sexual harassment scandal.

The Committee on Standards, that analyses complaints made against MPs, has said it does not agree with the decision and opposes it.

It aims to table an amendment to block the changes before a vote by members.

The Committee said: “Any decision to step back from this will be perceived as conducting investigations in secret and a radical departure from a commitment to openness and transparency.

“It is important to publish at least a summary of each case she has concluded so that it can be shown that justice has been done and that MPs are accountable.”

Kevin Barron, the chair of the Standards Committee, said: “It would be a huge step backwards in terms of transparency to block the publication of all disciplinary cases, including cases outside of the new code for things, such as incorrect use of stationery or abuse of their expenses.”

The commissioner’s inquiries this year have included Jeremy Hunt and Craig Mackinlay.

Sir Alistair Graham, the former chair of the Committee on Standards in Public Life, said it would “seriously undermine our democratic system”.

https://www.express.co.uk/news/uk/991074/MPs-anonymous-expenses-new-plans

Sleazy DUP MP banned from Parliament for 30 days

Wonder how many days Swire has spent in the Maldives on government or Conservatives Middle East Ccouncil business?

“Ian Paisley Junior been suspended from the House of Commons for seven weeks after breaking Westminster rules over luxury trips worth up to £100,000.

The “severe” punishment has been imposed on the senior Democratic Unionist Party MP after he took his family on all-expenses-paid holidays to Sri Lanka in 2013.

Mr Paisley failed to register the trips before writing to David Cameron in support of the Sri Lankan government “about a proposed United Nations resolution”.

“In view of the seriousness of this matter, we recommend that Mr Paisley be suspended from the service of the House for a period of 30 sitting days starting on 4 September 2018,” said the Commons standards committee.

His actions amounted to “paid advocacy” and “bring the House of Commons into disrepute”, a damning report concluded.

“The 30-day suspension, if confirmed by a Commons vote, is thought to be the longest period any MP has been barred from the Commons for 15 years.

It also exposes Mr Paisley to the danger of being “recalled” by his constituents, under legislation passed in 2015, which would trigger a by-election.

If a recall petition is opened, it must be signed by at least 10 per cent of the electorate in his North Antrim seat for a by-election to take place.

The lengthy suspension, to begin on 4 September, also reduces Theresa May’s effective working majority by one – ahead of potentially more crucial Brexit votes in the autumn. …”

“Dark money lurks at the heart of our political crisis”

“Democracy is threatened by organisations such the Institute of Economic Affairs that refuse to reveal who funds them.

A mere two millennia after Roman politicians paid mobs to riot on their behalf, we are beginning to understand the role of dark money in politics, and its perennial threat to democracy. Dark money is cash whose source is not made public, and which is spent to change political outcomes. The Facebook/Cambridge Analytica scandal, unearthed by Carole Cadwalladr, and the mysterious funds channelled through Northern Ireland’s Democratic Unionist party to the leave campaign in England and Scotland have helped to bring the concept to public attention. But these examples hint at a much wider problem. Dark money can be seen as the underlying corruption from which our immediate crises emerge: the collapse of public trust in politics, the rise of a demagogic anti-politics, and assaults on the living world, public health and civic society. Democracy is meaningless without transparency.

The techniques now being used to throw elections and referendums were developed by the tobacco industry, and refined by biotechnology, fossil fuel and junk food companies. Some of us have spent years exposing the fake grassroots campaigns they established, the false identities and bogus scientific controversies they created, and the way in which media outlets have been played by them. Our warnings went unheeded, while the ultra-rich learned how to buy the political system.

The problem is exemplified, in my view, by the Institute of Economic Affairs (IEA). In the latest reshuffle, two ministers with close links to the institute, Dominic Raab and Matthew Hancock, have been promoted to the frontbench, responsible for issues that obsess the IEA: Brexit and the NHS. Raab credits the IEA with supporting him “in waging the war of ideas”. Hancock, in his former role as cabinet office minister, notoriously ruled that charities receiving public funds should not be allowed to lobby the government. His department credited the IEA with the research that prompted the policy. This rule, in effect, granted a monopoly on lobbying to groups such as the IEA, which receive their money only from private sources. Hancock has received a total of £32,000 in political donations from the IEA’s chairman, Neil Record.

The IEA has lobbied consistently for a hard Brexit. A report it published on Monday as an alternative to Theresa May’s white paper calls for Brexit to be used to tear down the rules protecting agency workers, to deregulate finance, annul the rules on hazardous chemicals and weaken food labelling laws. Darren Grimes, who was fined by the Electoral Commission on Tuesday for spending offences during the leave campaign, now works as the IEA’s digital manager.

So what is this organisation, and on whose behalf does it speak? If only we knew. It is rated by the accountability group Transparify as “highly opaque”. All that distinguishes organisations such as the IEA from public relations companies such as Burson-Marsteller is that we don’t know who it is working for. The only hard information we have is that, for many years, it has been funded by British American Tobacco (BAT), Japan Tobacco International, Imperial Tobacco and Philip Morris International. When this funding was exposed, the IEA claimed that its campaigns against tobacco regulation were unrelated to the money it had received. Recently, it has been repeatedly dissing the NHS, which it wants to privatise; campaigning against controls on junk food; attacking trade unions; and defending zero-hour contracts, unpaid internships and tax havens. Its staff appear on the BBC promoting these positions, often several times a week. But never do interviewers ask the basic democratic questions: who funds you, and do they have a financial interest in these topics? …

While dark money has been used to influence elections, the role of groups such as the IEA is to reach much deeper into political life. As its current director, Mark Littlewood, explains, “We want to totally reframe the debate about the proper role of the state and civil society in our country … Our true mission is to change the climate of opinion.”

Astonishingly, the IEA is registered as an educational charity, with the official purpose of helping “the general public/mankind”. As a result it is exempted from the kind of taxes about which it complains so bitterly. Charity Commission rules state that “an organisation will not be charitable if its purposes are political”. How much more political can you get? In what sense is ripping down public protections and attacking the rights of workers charitable? Surely no organisation should be registered as a charity unless any funds it receives above a certain threshold (say £1,000) are declared.

The Charity Commission announced last week that it has decided to examine the role of the IEA, to see whether it has broken its rules. I don’t hold out much hope. In response to a complaint by Andrew Purkis, a former member of the Charity Commission’s board, its head of regulatory compliance, Anthony Blake, claimed that the IEA provides a “relatively uncontroversial perspective accepted by informed opinion”. If he sees hard Brexit, privatising the NHS and defending tax havens as uncontroversial, it makes you wonder what circles he moves in.

I see such organisations as insidious and corrupting. I see them as the means by which money comes to dominate public life without having to declare its hand. I see them as representing everything that has gone wrong with our politics.

• George Monbiot is a Guardian columnist”

https://www.theguardian.com/commentisfree/2018/jul/18/dark-money-democracy-political-crisis-institute-economic-affairs

“Rise of dealmaker CEOs puts governance skills ‘at risk’ “

“The rise of the commercially-minded “dealmaker” as a local authority chief executive requires a “reappraisal” of council governance skills, according to CIPFA chief executive Rob Whiteman.

Whiteman spoke to Room151 at the 2018 CIPFA conference in Bournemouth, explaining the need for his organisation’s new financial resilience index.

Whiteman said that it made sense for many councils to appoint chief executives with commercial skills, but added that traditional oversight skills are in danger of being lost.

“Councils are now understandably appointing dealmakers, and that is good in terms of developing their commercial and their development opportunities.

“But there is a risk to that. For want of a better word, the town clerk element of being a chief executive is under pressure.

“This is the element which insists on good governance; that insists on options being looked at; that gives advice on there being a fit and proper relationship between officers and members, where officers can speak truth unto power and can give an opinion even if that opinion is unwelcome.”

Whiteman said that hand-in-hand with improved commercial know-how, councils must have “a reappraisal of governance skills because we are placing the taxpayer and public at more risk unless we strengthen the safeguards and assurances that we have”.

He added: “If we are going to have more dealmakers we have to have better governance and better assurance.”

Whiteman said CIPFA’s new index is a necessary response to the decision earlier this year by Northamptonshire County Council to issue a section 114 notice bringing a halt to all but essential spending.

“There is a strong feeling that, as the body that regulates professional conduct and the quality of financial management support in local government, we need to take steps to acknowledge that Northamptonshire was a failure of sector-led improvement.”

Northamptonshire’s section 114 notice was issued in February, five months after a financial peer review commissioned by the Local Government Association raised a number of issues with the authority’s financial management.

“The advice from Max Caller, the independent inspector of Northamptonshire, is that a section 114 notice should have been served earlier and, if it had been, it may have stopped the authority getting to a position which, to the lay person, was one of insolvency,” Whiteman said.

He went onto say that in some authorities, a lack of effective communication between finance officers and top level council decision makers can hinder efforts to avoid financial problems.

He said: “I speak to finance officers who think they are not being listened to by the corporate management team or by members or by the chief executive. On the other hand, I could speak to corporate managers, or members or chief executives, who think finance officers are not listening to them.

“What we cannot allow, as a sector, is the position that people might be heading for financial failure and they don’t know it.”

The proposed resilience index is also intended to help prevent a culture of denial leading to overlooked financial problems , Whiteman said.

“The reason that CIPFA is looking at the index is to make sure we have an alternative to speculation that can be dismissed or discounted.”

He said the index was driven by a need to ensure council finances were heading in the right direction.

“That is not only good for those councils but it is good for the sector,” he said.

Whiteman said that CIPFA would produce the index using its in-house team of 30 analysts, would not take sponsorship to fund it and would not charge councils for it.

“It is important that an independent body such as CIPFA produces a way of warning where failure could occur in a few years’ time,” he said.

“If CIPFA doesn’t do it, who else would do it? And, if nobody does it, could we have other Northamptonshire style failures?”

http://www.room151.co.uk/funding/rob-whiteman-rise-of-dealmaker-ceos-puts-governance-skills-at-risk/

“How to maintain high ethical standards in local government: a perspective on the Committee on Standards in Public Life’s review so far”

Professor Colin Copus is a specialist advisor to the Committee on Standards in Public Life’s review into local government ethical standards. He writes here in a personal capacity:

“As academic advisor to the Committee on Standards in Public Life’s review into ethical standards in local government, I’ve been reflecting on the evidence I’ve heard so far.

The aim of the review is to test the robustness of the current system for maintaining high standards of public behaviour in local government. It is not a hatchet-job on councillors or intended to identify a problem where there is not one. Rather, the review will assess evidence to enable a judgement to be made about what, if any, changes are required to the current regime to ensure the maintenance of the highest ethical standards in local government.

My impression so far is that there are two competing themes emerging that pose a challenge to anyone considering how best to create the environment for strong ethical behaviour in local government. Those themes result in the question: do we nationalise or do we localise ethical standards in local government?

The danger in any review in local government is for rose-coloured spectacles to temper one’s view of past systems. It is nowhere more the case than in the ethical standards debate.

The evidence received by the Committee so far has highlighted some difficulties with the effectiveness of localising standards that came with the abolition of the standards board and the past regime associated with the board by the Localism Act 2011.

Concern has also been expressed about placing control over the ethical regime (and code of conduct) with councils themselves and about the apparent weaknesses in the sanctions available to councils when dealing with ethical and behavioural issues.

Moreover, the review has heard that local codes of conduct can result in councillors who sit on county, district and parish councils at the same time potentially being subject to three different codes. We do not yet know how widespread this issue is or if it generates regular and intractable problems for councillors and officers.

But the review has also heard that there is a recognition that centralising and nationalising ethical standards can result in a system that is remote, anonymous, lacking in appreciation of local differences of culture, tradition and behaviour.

Nationalising the system also prevents flexibility and responsiveness to specific local issues and at worse can result in councillors feeling on ‘trial’ and subject to a remote and bureaucratic system, which in itself can damage local democracy.

The issue of sanctions also looms large as does the role of independent input or oversight of the local process of assessing standards issues.

Sanctions pose a particular problem, not least because under the current arrangements, a party in power may be tempted to misuse their majority when imposing sanctions, but also because there is a line between what is appropriate for councils to be able to require and impose as sanctions and what is appropriate that the electorate themselves have at their disposal.

The question of sanctions is closely tied to that of oversight: even the power to suspend councillors from committees, council meetings or council premises and restrict resources for a short while may be subject to misuse. Robust safeguards and rights of appeal must, therefore, be available to councillors whose behaviour is not the real problem – but instead find themselves the subject of a complaint when they are an effective and vocal opponent of the ruling administration.

We also do not yet know how widespread such a problem may be. It is clear that the issue of sanctions, the system by which they are imposed and independent oversight and involvement, will be a key theme of the Committee’s assessment of the evidence in this review.

The hazard with any ethical regime – local or national – is how the political parties in local government respond to that regime.

Given that over 90 per cent of all councillors in England are from the Conservative and Labour parties and the Liberal Democrats, the temptation to use a set of rules and regulations designed to control councillors’ behaviour for party political advantage or to silence councillors from other parties, is considerable.

Any ethical regime must not provide a system that can be misused for party advantage or by officers to restrain troublesome councillors as both can damage free speech within local democracy.

It must also be remembered that ethical standards in English local government are among the highest across Europe and that results in a commitment by the overwhelming majority of councillors to public service and the public wellbeing.

The Committee has a difficult tightrope to walk to make observations and recommendations that provide an opportunity for all local authorities and the central government to finesse and reform the current system, to ensure the highest standards of ethical behaviour are maintained and strengthened in local government. It is well worth the walk.”

http://www.democraticaudit.com/2018/07/10/how-to-maintain-high-ethical-standards-in-local-government-a-perspective-on-the-committee-on-standards-in-public-lifes-review-so-far/

EDDC: consultation on Statement of Community Involvement

“The Council is currently consulting on the new Statement of Community Involvement (SCI). This is the document which sets out how, where and when we will consult on planning matters such as Policy documents, planning applications and Neighbourhood Plans.

The SCI is available for comment from

3rd July to 15th August 2018

All comments will be considered by the Council and will inform subsequent versions of the document.

Any comments should be marked ‘SCI’ and emailed to:

planningpolicy@eastdevon.gov.uk
or posted to
Planning Policy Team, East Devon District Council, Knowle, Sidmouth, EX10 8HL
Phone: 01395 571533

EDDC’s recent external auditor facing fourth inquiry; regulator “feeble and timid”

“The accounting watchdog has launched an investigation into KPMG’s audit of Conviviality, the collapsed drinks and off-licence supplier.

It is the latest regulatory scrutiny into the Big Four firm, which is also under investigation over its audits of Carillion, Rolls-Royce and BNY Mellon.

The Financial Reporting Council has accused KPMG of an “unacceptable deterioration” in the quality of its audits and put its audits under special supervision. Last month it fined the firm £3.2 million for misconduct in its audits for Quindell, the insurance technology company. Pressure is increasing on KPMG and its competitors PWC, Deloitte and EY. Carillion and BHS shone a spotlight on the firms’ roles as both auditors and consultants to companies.

Conviviality, owner of the Bargain Booze and Wine Rack chains, collapsed into administration in April. It had been valued at more than £500 million in March but fell from grace after admitting that it had made an error in its forecasting and had found a £30 million tax bill due by the end of the month. It had 4,000 employees and 760 stores. Almost 2,000 jobs were saved when C&C acquired the wholesale business from the administrator. Bestway bought the retail business. The FRC is looking at financial statements for Conviviality in the year to the end of April 2017.

A spokesman for KPMG said: “We believe we conducted our audit appropriately. As reported by the company, it experienced margin weakness at the start of 2018 and also a significant payment to HMRC which had not been included within its short-term cash-flow projections, creating a short-term funding requirement.”

The FRC said that it would also investigate a member of the Institute of Chartered Accountants in England and Wales over the preparation and approval of Conviviality’s financial statements but did not name the individual.

This investigation comes as the FRC, the ICAEW, and the industry-backed Audit Quality Forum prepare to launch a government-backed review that will consider the effectiveness of the existing model for auditing. They are looking for an independent business leader to lead the review.

Bill Michael, who took over as head of KPMG UK in September, supports a review. “The profession needs to be re-evaluated, otherwise we run the risk of eroding trust,” he told The Times . “We can’t have a profession that isn’t trusted. It has consequences for society and the capital markets. You only need one bad apple to lose trust in the system.”

KPMG UK employs 15,000 partners and staff, 3,600 of whom work in its audit practice. Its tax consulting, deal advisory, management and risk consulting practices have grown in recent years and now employ about 7,500 staff.

The FRC is the subject of a parliament-led review which is expected to overhaul how the FRC works and shake up the accountancy profession. MPs looking at Carillion’s collapse accused regulators of being “feeble and timid”.”

Source: Times (pay wall)

“Company co-founded by Jeremy Hunt broke [tax] law”

A company co-founded by Jeremy Hunt breached company law before carrying out a restructuring designed to reduce the health secretary’s tax bill by about £100,000, it has emerged.

Hotcourses, which was at the time majority-owned by Hunt, failed to file crucial documents with Companies House for over three years, when the law says they must be filed within 15 days.

It was reported in 2012 that Hunt reduced his potential tax bill by around £100,000 by moving an office building out of the company before a change to the dividend rate.

The Hotcourses’ mistake is a further embarrassment for the health secretary, who recently had to apologise after being investigated by the standards commissioner for failing to report ownership of seven flats in Southampton through a company.

Hunt has admitted breaching money-laundering rules brought in by his government, having failed to declare his 50% interest in the property firm to Companies House.

Hunt’s accountant, Grunberg & Co, said their failure to file the documents was “regrettable” and an “administrative error”, but not Hunt’s error as at the time he was a shareholder and not a director. Hunt referred inquiries to his accountant.

As has been previously reported, Hunt and his business partner, Mike Elms, transferred an office building in 2010 worth £1.8m out of Hotcourses and into their own names. They then immediately started renting the building back to the company.

The two men had to pay dividend tax on this “dividend in specie”, which at the time was 32.5%.

The March 2010 transfer took place just before the tax rate for the transaction rose to 42.5% at the beginning of April 2010. By paying themselves the building as a dividend before the change in tax rules, the two men saved themselves an income tax bill of around £200,000 on the deal.

According to documents filed at Companies House, Hunt and other shareholders signed documents to vary the rules of the company in February 2010. However, it was not until May 2013 that the “articles of association” were sent to Companies House.

Hunt’s accountants said that the dividend in specie could have been paid under the old articles of association, so the tax position would not have been affected by the changes.

Hunt stopped being a director of Hotcourses in 2009 but remained the largest shareholder in the company. Grunberg said it was the responsibility of the directors to file the documents.

Hunt co-founded the educational listings company in 1990. In 2017, the company was sold for £30.1m to IDP Education, a Melbourne-based student placement company that co-owns the popular IELTS English language proficiency test. The sale netted Hunt around £14.5m, which made him one of the richest Conservative MPs. In the MPs’ register of interests, Hunt also declares a half-ownership of a house in Italy.

Hunt’s shares have been held in a blind trust since he became a cabinet minister in 2010.

Hotcourses runs a variety of education-search websites including Whatuni, Postgraduate Search and the Complete University Guide. It also operates sites under its own name.

Hunt, who recently became the longest serving health secretary in history, has said previously that the success of Hotcourses came only after he and Elms had pursued a string of failed ventures, including a scheme to export marmalade to Japan and building children’s playgrounds.

https://www.theguardian.com/politics/2018/jun/26/firm-co-founded-by-jeremy-hunt-broke-law

“UK democracy under threat and reform is urgent, says electoral regulator”

“The Electoral Commission has called for urgent reforms to electoral law after a series of online political campaign scandals, acknowledging concerns that British democracy “may be under threat”.

Following a series of revelations involving the likes of Cambridge Analytica, the elections regulator has asked Westminster and the devolved governments to change the law in order to combat misinformation, misuse of personal data and overseas interference in elections.

Among other recommendations, the Electoral Commission has called for:

A change in the law to require all digital political campaign material to state who paid for it, bringing online adverts in line with physical leaflets and adverts.

New legislation to make it clear that spending in UK elections and referendums by foreign organisations and individuals is not allowed.
An increase in the maximum fine, currently £20,000 per offence, that the Electoral Commission can impose on organisations and individuals who break the rules.

Tougher requirements for political campaigns to declare their spending soon after or during a campaign, rather than months later.

A requirement for all campaigners to provide more detailed paperwork on how they spent money online.

The intervention follows years of debate about the largely unregulated world of online political campaigning in the aftermath of the 2016 EU referendum and Donald Trump’s election as US president.

“Urgent action must be taken by the UK’s governments to ensure that the tools used to regulate political campaigning online continue to be fit for purpose in a digital age,” said Sir John Holmes, chair of the Electoral Commission.

“Implementing our package of recommendations will significantly increase transparency about who is seeking to influence voters online, and the money spent on this at UK elections and referendums.”

His organisation also backed proposals to publish a database of political advertisements that will enable the public “to see what adverts a campaigner has taken out and how much they paid”. Facebook is already due to launch such a facility for UK political adverts within the coming months.

The regulator, alluding to foreign governments such as Russia, also raised concerns that there is currently no explicit ban on overseas organisations buying online political ads aimed at a British audience. …

… A Cabinet Office spokesperson said: “The government is committed to increasing transparency in digital campaigning in order to maintain a fair and proportionate democratic process, and we will be consulting on proposals for new imprint requirements on electronic campaigning in due course.”

The Electoral Commission has also asked for the power to investigate individual political candidates if they have broken constituency spending limits in general elections. At the moment only the police can investigate such allegations, resulting in the long-running investigation into Tory candidates’ spending on battle buses, which was dropped by the Crown Prosecution Service due to insufficient evidence.

Other proposals include pushing political parties to count online advertising targeted at local constituencies within individual candidate spending limits – which can be as low as £10,000 – rather than as part of national campaigns which are allowed to spend up to £19.5m. During the 2017 general election the Conservatives were able to target Facebook ads regarding local issues at individuals in specific constituencies and count it as national spending – just so long as they didn’t mention the name of the local Tory candidate.

Both Labour and the Conservatives spent substantial sums of money on online promotions during the last general election, with digital spending accounting for more than 40% of all advertising spending by political parties in 2017. …”

https://www.theguardian.com/politics/2018/jun/26/uk-democracy-under-threat-and-reform-is-urgent-says-electoral-regulator

“KPMG singled out in critical report on audit industry”

KPMG were, until recently, the auditors of East Devon District Council. Let’s hope that Grant Thornton (now back in the frame at EDDC) perform better – but who recalls their pitiful performance when they “investigated” the disgraced Councillor Graham Brown affair and found ….. nothing.

“KPMG, the accounting firm that signed off the books in the years leading up to Carillion’s collapse, has been singled out by the industry regulator in a report that says the overall quality of the audit profession is in decline.

The Financial Reporting Council, the watchdog for the UK’s accountants, said the profession had demonstrated a “failure to challenge management and show appropriate scepticism across their audits”.

There have been calls for the “big four” accountants – KPMG, PricewaterhouseCoopers, EY and Deloitte – to be broken up to spur competition and improve standards.

All four gave Carillion financial advice before the construction and outsourcing company failed. MPs accused the four of “feasting” on Carillion, whose finances proved far less healthy than directors had suggested.

The FRC reported a decline in the quality of the work of all four, with KPMG performing the worst. The watchdog is already investigating KPMG over its role in the collapse of Carillion and it said on Monday there had been an “unacceptable deterioration” in the quality of its work.

The FRC cited figures that showed half of KPMG’s audits of firms in the FTSE350 index had required “more than just limited” improvements, up from 35% in the previous year.

“The overall quality of the audits inspected in the year, and indeed the decline in quality over the past five years, is unacceptable and reflects badly on the action taken by the previous leadership, not just on the performance of frontline teams,” the regulator said.

“Our key concern is the extent of challenge of management and exercise of professional scepticism by audit teams, both being critical attributes of an effective audit, and more generally the inconsistent execution of audits within the firm.”

It added: “[KPMG] agrees that its efforts in recent years have not been sufficient; the FRC will hold KPMG’s new leadership to account for the success of their work to improve audit quality.” …

The FRC said it would now scrutinise KPMG more closely as a result of its findings. It will inspect 25% more KPMG audits than before and monitor the firm’s plans to improve the quality of its work.

In the FRC’s overall assessment of eight accountants, it found that 72% of audits of all firms, including those outside the FTSE350, required no more than limited improvement, down from 78% last year. While only half of KPMG’s FTSE350 audits were deemed satisfactory, rivals scored far higher, although all showed declines and fell short of the FRC’s target of 90%.

Deloitte scored 79%, down from 82% last year, EY fell from 92% to 82% and PwC was down from 90% to 84%. The four firms immediately below the big four – BDO, Mazars, GT and Moore Stephens – were told that the quality of their audits had generally improved.”

https://www.theguardian.com/business/2018/jun/18/kpmg-singled-out-in-critical-report-on-audit-industry

It’s going to take more than a yew tree branch to ward off evil at EDDC new HQ!

And who at EDDC was responsible for this press release that gives the (totally erroneous) impression that the sale of Knowle is 100% financing the new HQ?

https://eastdevonwatch.org/2018/06/16/sums-on-knowle-relocation-not-adding-up-for-us-the-taxpayers/

“A yew tree branch has been placed on top of East Devon District Council’s new HQ to “ward off evil spirits”.

The topping out ceremony took place at Blackdown House in Honiton, which will be the council’s new home by January 2019.

As part of the ceremony, a yew tree branch was attached to the highest point of the building.

The ceremony was completed by council chairman Andrew Moulding and leader Ian Thomas. A council spokesman said it was “an age-old tradition”.

The authority plans to move from its current HQ in Sidmouth to Blackdown House in December 2018. The move will be financed by selling the property to Pegasus Life Ltd for £7.5m, which will turn it into a 113-apartment assisted-living community. …”

https://www.bbc.co.uk/news/live/uk-england-devon-44465408

Swire’s mate and co-director “shames himself”

It seems the national press is reluctant to point out that Lord Barker is in the energy business with our own Hugo Swire:

https://eastdevonwatch.org/2018/05/20/swire-and-lord-barker-linked-to-russian-military-and-oligarchs-appear-to-be-in-business-together-a-business-apparently-not-on-his-register-of-interests/

“A Tory peer has “shamed himself” by ­lobbying for a Russian energy giant that had sanctions imposed after the Salisbury attack.

David Cameron’s ex-Energy Minister Greg Barker met with the Irish government last month in a bid to enlist its support for En+.

Lord Barker is chairman of En+, which is majority owned by Russian oligarch Oleg Deripaska, a close ally of Vladimir Putin.

En+ and Mr Deripaska were slapped with sanctions after the murder plot against Sergei and Yulia Skripal in March.

The meeting can be disclosed today by the Mirror.

In response, MPs called on Theresa May to launch an inquiry into Lord Barker’s business dealings.

In April, Donald Trump imposed sanctions against billionaire Mr Deripaska and the companies in which he is a large shareholder.

His firms include aluminium producer, Rusal, and its parent firm En+. Rusal is the parent company of Aughinish Alumina in County Limerick, which employs 450 workers.

Lord Barker’s meeting with Irish Business Minister Heather Humphreys will raise ­questions about Tory links to Russia after the PM blamed the Salisbury attack on Moscow.

Lib Dem MP Tom Brake said: “He has shamed himself and the office he held.”

Jon Trickett MP, Labour’s Shadow Minister for the Cabinet Office, added: “It stinks.”

The Irish government said it remained “concerned” about the impact of sanctions.

There is no suggestion Lord Barker is in breach of the Lords’ code of conduct.

Neither he nor En+ would comment.”

https://www.mirror.co.uk/news/politics/tory-shamed-himself-lobbying-russian-12718297

Teignbridge Council CEO given £264,000 to push off – now working for West Sussex on £138,000 plus perks

“A council chief executive was given a golden handshake of more than £250,000 in a deal that bosses tried to keep secret to avoid causing her “unnecessary or unjustified distress”.

Nicola Bulbeck, 60, left Teignbridge district council in Devon last summer after 11 years’ service. The council had repeatedly refused to reveal how much she received but its draft annual accounts disclosed yesterday that the former barrister left with a £264,000 “exit package”.

It was also revealed that she was allowed to stay on until the day after the general election last year so that she could earn a further £30,000 for being the returning officer.

After leaving the local authority she was appointed an executive director at West Sussex county council last January on an annual salary of £138,000.
There has been concern about a “revolving door” of senior local authority staff receiving significant payoffs before moving to similar jobs.
Several Teignbridge district councillors have alleged that Ms Bulbeck kept her company car as part of the leaving package. The council has declined to comment on the claim.

Phil Shears, who replaced Ms Bulbeck, had defended the decision not to release details of her payout when she departed. He claimed that the disclosure would “cause unnecessary or unjustified distress or damage” to his predecessor. Mr Shears was appointed the council’s managing director on a salary of £94,656, considerably less than Ms Bulbeck earned. Ms Bulbeck had been criticised for accepting a 12 per cent pay rise that took her annual pay packet from £126,000 to almost £142,000.

The district council and the Information Commissioner’s Office rejected several attempts by the Mid-Devon Advertiser to unearth Ms Bulbeck’s settlement. The accounts show that she received £173,091 “compensation for loss of employment” as part of her exit package”.

Jeremy Christophers, the council’s Conservative leader, said: “We have followed strict council policy and abided by the legal advice given.”

Gordon Hook, a Liberal Democrat councillor, said: “The leaving packages for some senior officers at local authorities are nothing short of obscene in the eyes of many. My view is that the general public have every right to know how their council tax is spent.”

Ms Bulbeck was not available for comment yesterday.”

Source: The Times (pay wall)

“Downing Street Accused Of Burying Electoral Commission Investigation Into Theresa May’s Advisors”

“Downing Street has been accused of pushing through key Brexit votes before MPs know the result of an investigation into whether Theresa May’s advisors broke the law during the EU Referendum

Stephen Parkinson, the PM’s political secretary, and Cleo Watson – also a Downing Street staffer – are both being investigated by the Electoral Commission as part of an inquiry into whether the official Brexit campaign broke spending limits.

The investigation was launched in November, but the Electoral Commission has now presented its findings to those under investigation. They have 28 days to provide a response to the conclusion before the report is made public.

Labour’s Deputy Leader Tom Watson is questioning if the votes on the EU Withdrawal Bill – planned for Tuesday and Wednesday – are being rushed through before MPs have the chance to consider the results of the investigation.

He said: “Each day the plot thickens about the murky dealings of the various Brexit campaigns.

“Now it seems senior figures at the heart of Number 10 who were involved in Vote Leave could have been informed about the contents of this important Electoral Commission investigation long before anyone else.

“If that’s true Number 10 would have had time to plan and even ensure key Brexit votes like the ones this week could happen before the investigation
should really still be shaping and taking decisions at the heart of Government.”

The investigation centres around payments made by Vote Leave to clear debts of £625,000 run up by university student Darren Grimes with the digital campaign company AggregateIQ Data.

Grimes – who ran the BeLeave group – was allowed by electoral law to spend £700,000 in the campaign.

As the official campaign group, Vote Leave could spend £7million, and if it had commissioned and spent that £625,000 itself it would have breached the spending limits.

The Electoral Commission initially accepted the Vote Leave argument that it had donated the money to Grimes, despite settling the bill with AggregateIQ directly.

A separate group, Veterans for Britain, also received £100,000 from Vote Leave.

But in November it reopened its investigation, claiming new information had come to light.

Downing Street is drawn into the investigation as Stephen Parkinson – the PM’s Political Secretary – was National Organiser for Vote Leave during the referendum campaign.

He is accused by former Vote Leave volunteer Shahmir Sanni of directing how BeLeave should spend money – something which would be a breach of electoral law.

In March, Parkinson revealed he and Sanni had been in a relationship as part of his denial, prompting Sanni to claim his family in Pakistan – who did not know he was gay – were forced to take “urgent protective measures” for their own safety.”

https://www.huffingtonpost.co.uk/entry/downing-street-brexit-electoral-commission_uk_5b1e58a0e4b0adfb826bbe6e?guccounter=1

Devon CCG refuses to reveal crucial figures to independent county councillor

“Beds, beds, beds – Devon’s NHS couldn’t or wouldn’t give me their overall occupancy figure for the recent winter: but they were forced to buy in more capacity and there were ’12-hour trolley breaches’

Devon NHS’s Sustainability and Transformation Partnership (STP) admitted in a report to Health Scrutiny yesterday that they had been desperately short of beds during the recent winter. They had to buy in extra beds to keep up with more patients staying longer, because of complex conditions. There were ’12-hour trolley breaches’, where patients had to wait more than 12 hours to be seen.

Despite my asking them directly, they did not give a figure for overall occupancy levels, although they did not deny my suggestion that they had been as bad as or worse than the nationally reported level of 95 per cent. (The nationally recommended safe level is 85 per cent.)

Jo Tearle, Deputy Chief Operating Officer for the Devon CCGs, rebutted my suggestion that cutting community beds had contributed to this crisis, saying that these were not the kind of beds they had needed, and that there had been capacity in community hospitals most of the time. However this suggests that there was no capacity some of the time. It is difficult not to believe that extra community beds wouldn’t have given them more leeway.

Meanwhile, Kerry Storey of Devon County Council indicated the strains that the ‘new model of care’ at home had been under. She said that maintaining personal care at home during the winter had been ‘a real challenge’, requiring ‘creativity and innovation’ – you don’t need much imagination to see that it will have been a real crisis time with frail people at home in isolated areas, care workers and nurses struggling to get through the snow, and staff themselves suffering higher levels of illness.

I and others predicted that because of the closure of community beds, there would be severe pressure on beds in a bad winter or a flu epidemic (and actually, this was not overall a bad winter and the snow episodes were late and short; despite higher levels of flu, there was no epidemic this winter).”

Beds, beds, beds – Devon’s NHS couldn’t or wouldn’t give me their overall occupancy figure for the recent winter: but they were forced to buy in more capacity and there were ’12-hour trolley breaches’

“Two Dorset councils take out [allegedly] ‘fraudulent’ high-risk loans worth over £120m”

“Campaign group Debt Resistance UK revealed that Dorset County Council and Weymouth and Portland Borough Council have taken out £123m of Lender Option Borrower Option loans (LOBOs) in an effort to reduce their debts.
Dorset County Council took out £95.9m, while Weymouth and Portland Borough Council took £27m at the end of the 2015-16 financial year.
The LOBOs, which were uncovered on Channel 4’s Dispatches documentary series, allow private banks to propose or impose a new fixed rate on a pre-determined future start date.

This means that the borrowing party can either accept the new interest rate or repay the entire loan, paying a ‘breakage penalty’—the fee a client must pay its lender to break from the contract— incurring further costs on the local authority.

Last month the Chartered Institute of Public Finance and Accountancy (CIPFA) urged local councils to review their LOBO loans after auditing firms expressed concern at their impact on local authorities’ accounts. Channel 4’s Dispatches found that over 200 authorities had used the loans, totalling up to £15bn.

Cllr John Whitworth, chair of the Newham Council Scrutiny Committee, labelled the LOBO loans a “fraud on the people,” arguing that many local authorities took out the loans when they were struggling financially during the economic downturn in 2008. He added that the loans became “a very serious handicap” on councils dealing with austerity in later years.

Debt Resistance UK campaigner Joel Benjamin noted: “it is always cheaper for government to borrow than banks, and that PFI and by extension LOBO loans are therefore a fraud.”

Last week a merger between all nine Dorset councils was approved, creating the formation of Christchurch and Poole Council and Dorset Council. The deal is expected to deliver £6m in savings.”

http://www.publicsectorexecutive.com/Public-Sector-News/two-dorset-councils-take-out-fraudulent-high-risk-loans-worth-over-120m

Standards, what standards?

“Health Secretary Jeremy Hunt will not face any sanctions after apologising twice for the late reporting of his interest in a property company.

Parliamentary standards commissioner Kathryn Stone ruled that although Mr Hunt had breached the MP’s code of conduct, his offence was “at the less serious end of the spectrum”.

The MP took “full responsibility” for his misinterpretation of the rules.

She decided against referring him to the Commons Committee on Standards.

Her inquiry followed a complaint by Labour MP John Trickett.

Mr Hunt was criticised in April for failing to record his involvement in Mare Pond Properties in the MPs’ register of interests within a 28-day time limit.

The Conservative cabinet minister apologised at the time and then did so again in person after admitting to Ms Stone he was a day late in registering the company’s purchase of seven luxury flats in Southampton.

According to her report, Mr Hunt said Mare Pond was initially “a shell company with no assets or value”.

While declaring his involvement to his department and the Cabinet Office, he wrongly believed it was not necessary to register his interest until it became operational with the purchase of the flats

In a letter to Mr Trickett, Ms Stone said: “I consider Mr Hunt’s acknowledgement of his breach of paragraph 13 of the code and his apology to be an appropriate outcome. This matter is now closed.”

DCC Health and Social Care “Scrutiny” – Claire Wright continues her battle

“Health and Adult Care Scrutiny Committee meeting: A PACKED AGENDA….

I asked for several items, including the future of our community hospitals, the plight of local carers, the local NHS deficit and what is being done to reduce it.

Also, on the agenda is how the local NHS coped with winter pressures (something I have asked for, for months and even resorted to a Freedom Of Information request on – it was refused, I have issued a formal complaint)……..

I have been really disappointed in recent months and years at what I see as a systemic lack of accountability in the NHS. As a Health Scrutiny Committee member, I would expect to get straight answers to straight questions at meetings, but unfortunately this rarely happens, which is why I was forced to submit a Freedom of Information request about a basic set of data tables relating to winter pressures.

I will not hesitate to do this again.

The report on carers starts on page 55 of the link below. This came about after I read a detailed survey and saw that local people who are caring for loved ones may not feel very supported.

I subsequently had a meeting with senior officers and saw the raw (anonymised) data from local focus groups. It was disturbing and it appeared to me that many local carers are having a really hard time managing, because of the government’s austerity agenda. I asked for the report to be referred to the Health Scrutiny Committee, but was told this wasn’t possible as consent had not been given by the participants of the focus group.

A version of the report has been submitted instead. I am pleased that a number of measures have been put in place by officers to try and improve matters, however, I have already told senior officers that leaving out the comments has meant that the voice of carers has been lost, in my view.

I believe that there should have been an attempt to secure retrospective consent for the publication of the report, as without a proper voice, the government will simply carry on ignoring carers’ plight – and they deserve better.

If you want to read the reports – and if you care about our NHS I would urge you to! The link is here
http://democracy.devon.gov.uk/ieListDocuments.aspx

Members of the public are permitted to address the committee in the 15 minute slot at the beginning of the meeting, but need to register four days ahead to do so. Email Gerry.rufolo@devon.gov.uk

The meeting starts at 2.15pm on Thursday 7 June. It will be webcast from this link:

https://devoncc.public-i.tv/core/portal/home

and archived afterwards.