Chief Executive of States orders report into £8m spend on court case

Paul Whitfield, Chief Executive, The States of Guernsey

Guernsey's Chief Executive Officer of the States has ordered a 'swift' report about the decision-making process of a High Court settlement that has cost the government £8m.

The States sued company 3M who produced a fire-fighting foam used at Guernsey and Alderney airports.

The court battle took place after traces of the chemical PFOS, found in the foam supplied by the company, were found in water in the islands.

However the matter was settled out of court and the States now have to pay £1.4m for the legal costs of 3M and £6.6m for their own.

Chief Executive Paul Whitfield has taken three actions after the case was closed:

  • Asked the Chief Officer of the Public Services Department for an urgent and full account of the circumstances and decision-making that has led to the outcome.

  • Discussed with the States Treasurer the steps that the Public Services Department will now need to take to meet the financial consequences of this outcome.

  • Asked the States Head of Risk Assurance to draft a terms of reference for a review into the governance and decision-making processes on this particular issue.

Mr Whitfield says his intention is to commission an external reviewer early next week and for a report to be produced 'swiftly'.

The Chief Minister and Minister for Treasury and Resources are 'supportive' of this approach.