Saturday, June 26, 2010

Equality watchdog spent £1million making staff redundant and rehiring them, MPs say

By Christopher Hope, Whitehall Editor Published: 7:00AM GMT 04 March 2010

Trevor Phillips:  Trevor Phillips should face Trevor Phillips, authority of the Equality and Human Rights Commission, who was privately blamed for problems over the environment up of the quango Photo: GRAHAM JEPSON

LEGAL MUST SEE

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It outlayed some-more than �11million on profitable off former staff when it was set up in 2007. However, staff shortages meant the Commission afterwards had to rehire staff it had only done redundant.

The MPs found that in sum 7 staff, who were paid �629,000 in separation payments, afterwards perceived an additional �339,000 when they were rehired as consultants on �822 a day by the Commission.

Five of the 7 staff were means to pick up their pay-offs and afterwards go on to work for the Commission but a mangle in their service.

The Commission "was incompetent to disagree ... [that] this represented worth for money", the MPs said, whilst the consultancy fees were some-more than they had perceived in their prior jobs at the Commission for Racial Equality .

The MPs were repelled to sense that as not long ago Nov a serve �15,000 price had been paid without delay to one of the rehired staff 3 months after they had left the Commission. The Commission was incompetent to insist because the remuneration was made.

In all, �11million of the �39million cost of environment up the Commission was paid out in early separation payments to staff who had been in use by the 3 quangos prior to they were joined in to the Commission.

The Commission was combined from an amalgamations of prior commissions for secular equality, incapacity rights and subsequent to opportunities

The MPs on the Public Accounts Committeee found "serious errors" that meant the quango was "not ready for business" when it proposed work in Oct 2007. Just 10 out of the programmed twenty-five directors of the new physique had been allocated by the time it proposed work in Oct 2007.

The MPs additionally found that the supervision group overseen by authority Trevor Phillips "lacked the right change of skills and the commercial operation plan had not been finalised".

Edward Leigh, the committees chairman, privately blamed Mr Phillips for the problems at the Commission.

He said: "The authority of the commission was in piece obliged for the ineffectiveness with that the house scrutinised the set-up routine and challenged managements proposals.

"There are still weaknesses in the commissions controls over staff costs, shown by the unexplained remuneration of �15,000 to one of the re-engaged consultants.

"This is not the approach this cabinet expects open bodies to be run and reinforces the need in destiny for stronger controls and correct procedures for handling and utilizing open money."

Richard Bacon MP, a Tory part of of the committee, pronounced the rehiring of former staff as consultants amounted to a "�1 million revolving door" for quango bosses.

He said: "This output could have been avoided if there had been a little simple planning. Taxpayers have the right to design that the supervision will take improved caring of their hard-earned taxes.

Unsurprisingly, the Treasury refused to give retrospective capitulation for this �1 million revolving doorway and these irregularities forced Parliaments monetary watchdog, the National Audit Office, to place a black symbol opposite the Commissions accounts".

In the sardonic report, the Committee additionally criticised the employing of an halt senior manager ubiquitous in May last year, after the arch senior manager resigned, on a price of �1,000 a day.

A orator for the Commission pronounced it was underneath "extreme pressures" to begin work on 1 Oct 2007. Sources forked out that it had no carry out over that staff took intentional excess forward of the environment up of the quango.

He said: "Under these circumstances, the Commission done mistakes for e.g. not creation an competent box for re-engaging multiform former members of staff.

"We have supposed these criticisms from the PAC and - as the NAO has recognized - we are receiving stairs to urge the monetary and opening reporting, and make firm the governance arrangements and alternative carry out systems."

The Commission"s halt senior manager ubiquitous had additionally right away taken a compensate cut to �150,000 a year, and had his stipulate lengthened until September.

Mr Kinghans stipulate had right away been lengthened to September, with a preference routine for a deputy due to be discussed by the house subsequent month, the orator said.