Greensill: Cronyism watchdog says system need urgent reform

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image caption Lord Pickles is in charge of policing conflicts of interest

The head of the watchdog that advises politicians and top civil servants when they take up jobs in the private sector has said the system needs urgent reform.

Giving evidence to MPs, Tory peer Lord Pickles said there were "anomalies" in the system that needed "immediate address".

It comes after news a top civil servant worked for Greensill Capital while still on the government payroll.

It is at the centre of a lobbying row.

The government has announced a review of contacts between top officials and ministers, including former prime minister David Cameron, and the now failed finance firm.

Lord Pickles, a Conservative peer and former cabinet minister, chairs the Advisory Committee on Business Appointments (Acoba) which advises former ministers and civil servants on outside employment.

Acoba has been criticised by MPs in the past for being a "toothless watchdog" but Lord Pickles has indicated he wants more powers to prevent former top officials and ministers abusing their positions.

In a Commons hearing when he got the Acoba job, he said: "I do think it's important for us to reassure the public that people do not personally get financial remuneration on the basis of privileged information they've obtained."

'Conflict'

He is now giving evidence to the Commons public administration committee, in an appearance scheduled before the lobbying row erupted.

On Tuesday, it was revealed that a former government procurement officer, Bill Crothers, joined Greensill as an adviser in 2015 whilst still working as a civil servant.

The Cabinet Office had agreed the appointment but Lord Pickles wrote to the leading civil servant Alex Chisholm to ask for "guidance on the conflicts-of-interest process" undertaken.

The letter adds: "The lack of transparency around this part-time employment with Greensill may have left the misleading impression that Mr Crothers had wilfully ignored the obligation to seek advice."

Mr Crothers left the Civil Service in November 2015, two months after taking up his role at Greensill. He became a director of the firm in late 2016.

On Wednesday, it was also revealed that government departments have been ordered to find out whether senior officials have rule-breaking second jobs.

Cabinet Secretary Simon Case has asked colleagues to declare paid roles or outside interests that "might conflict" with Civil Service rules by the end of the week.

Mr Crothers says his recruitment by Greensill was "transparent" and had been approved by the Cabinet Office under its internal conflicts of interest policy.

But Lord Pickles has said there had been a "lack of transparency" about the process - and has asked the Cabinet Office to provide further details.

'Baffling'

Speaking on BBC Radio 4's Today programme, former permanent secretary and Civil Service commissioner for public appointments Sir David Normington said it was "absolutely baffling", adding that he had "never come across anything like it in my 40 years in Whitehall".

He said: "There may be an explanation for this which we don't yet know, but we're not just talking here about any old civil servant.

"We're talking about someone who was responsible for commercial dealings in government, had oversight of relationships with a large number of major contractors and the handling of lots of public money.

"It's essential that people like that when they leave the Civil Service are subject to scrutiny and subject to rules which mean that they can't take up appointments immediately."

He added: "We've heard a lot about was this behaviour within the rules. Well, it's not just about the rules.

"It's about the principles of standards in public life, what we need is good behaviour in public life not just the following of rules."

Prime Minister Boris Johnson told MPs on Wednesday it was "not clear" that "boundaries have been properly understood".

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