Public deserves 'full and frank' explanation on civil servant's Greensill link, says committee chair
The British public deserve a "full and frank" explanation as to how a top civil servant was able to work part-time as an adviser at Greensill Capital, the chair of the committee investigating the connection has said.
Lord Pickles, who heads up the group which vets the appointment of senior ministers and officials, told MPs the case of Bill Crothers highlighted “a number of anomalies within the system”, and that his was not an “isolated” situation.
Mr Crothers, a former head of government procurement, began working for the collapsed firm Greensill as a part-time adviser to the board in September 2015 – in a move approved by the Cabinet Office – but did not leave his Civil Service role until November that year.
Advisory Committee on Business Appointments (Acoba) chair Lord Pickles said the public was “entitled” to know the arrangements for second roles being approved by the Cabinet Office, such as in Mr Crothers’ example.
It's important we 'get to the bottom' of Greensill saga, says Boris Johnson
“I mean, if Mr Crothers had decided he wanted to have a milk round or something, I don’t think we would be terribly worried,” he told the Commons Public Administration and Constitutional Affairs Committee (PACAC).
“But his particular position, in terms of running procurement and working for a commercial organisation, is something that does require a full and frank and transparent explanation.”
Lord Pickles said he did not bring his concerns about the lack of transparency in such appointments to the prime minister due to the government dealing with the coronavirus pandemic, and also the fact he felt his push for reforms was being met.
The former Tory cabinet minister added: “If I had found the machine wasn’t responsive, then I would have wandered down and spoken to a secretary of state or the prime minister.”
During the hearing with Lord Pickles, PACAC chair William Wragg MP announced a “full inquiry into the topical matters around Greensill”, which was approved to administer government Covid support loans before it went bust.
Boris Johnson said it was important the inquiry "got to the bottom" of how Greensill Capital acquired such influence at the heart of Whitehall and Westminster.
The prime minister said: "I think the most important thing is for us to get to the bottom of it properly.
"I want all ministers and civil servants to be making the information which needs to be known, known to Mr Boardman and let's see what he has to say."
He added: "We need to understand what's gone on here, and I agree thoroughly with Lord Pickles."
MPs on the Commons Treasury Committee had already announced their own inquiry into the Greensill’s collapse, which threatens thousands of UK jobs at Liberty Steel, which relied on the group’s financial backing.
Lord Pickles – who denied Acoba acted as a “watchdog” on appointments – said it was “not unusual” for civil servants to have paid second jobs, but not at Mr Crothers’ level, and admitted to being “surprised” by the official’s “excuse” in justifying his former part-time role with the specialist bank.
He recommended that all consultants and contractors for the government should sign a publicly-available memorandum of understanding where the restrictions on their future employment is set out.
Prime Minister Boris Johnson acknowledged on Wednesday that the boundaries between civil servants and the private sector had not always been “properly understood”.
In response, Cabinet Secretary Simon Case has called on all Whitehall departments to notify him of any senior officials with paid jobs outside government by the end of the week.
In a letter to permanent secretaries, he said the disclosures were a cause of “acute concern”, and he stressed the need for the Civil Service to “engage fully” with the review commissioned by Mr Johnson and led by senior lawyer Nigel Boardman.
Sir David Normington, a former Home Office permanent secretary, said it was “absolutely baffling” to learn of the situation surrounding Mr Crothers’s career switch, telling the BBC he had “never come across anything like it in my over 40 years in Whitehall”.
He said it was “essential” for Acoba to sign off on new moves as he pushed for greater oversight on top officials when exiting Whitehall.
The evidence from Lord Pickles, a former Tory party chair, follows a recent furore over lobbying by David Cameron on behalf of Greensill.
It followed disclosures that former prime minister Mr Cameron personally lobbied Chancellor Rishi Sunak on its behalf and was able to arrange for its founder, Lex Greensill, to have a “private drink” with Health Secretary Matt Hancock.
ITV News Political Correspondent Libby Wiener explains the links between key government figures and the collapsed procurement firm
The Government used its Commons majority this week to defeat an attempt by Labour to force the creation of a new committee of MPs specifically to examine the issues of lobbying and the Greensill affair.
Mr Cameron has insisted he did not break any rules, but acknowledged there are “lessons to be learned”, and that as a former prime minister, any contacts with Government should be through the “most formal channels”.
A spokesman for Mr Cameron has said he would respond “positively” to any request to give evidence to any of the inquiries that are taking place once the terms of reference have been established.