Here Today Gone Tomorrow - AD of Commercial Assurance

Nothing but trouble ( in procurement? )

Now if we go back to Walkley's warblings of August 2011 Mr Mustard blogged the following:

Welcome this week to Mick Stokes who joins us as the Assistant Director of Commercial Assurance.  Mick has specific responsibility for corporate procurement and I’m sure you all know how critical this role is at this time. Welcome Mr Stokes the fastest joiner into the blog ever. You are either very good & very brave or you are mad to try and sort out procurement in Barnet Council - it is a disaster, the biggest poisoned chalice imaginable and you need to watch out for the ceremonial sword if things don't go well. Hopefully that also means we have one less consultant ( Chris Malyon - CCMPS Ltd ) but he probably got a sideways transfer onto a One Barnet project - lots of jobs for One Barnet old boys.

OK Mr Mustard was wrong. Mr Malyon has gone back to Eastleigh (why does Barnet Council insist on using people from so far out of town. Mr Malyon wasn't paying PAYE so could, when he was here, claim his travel and/or accommodation costs against his tax bill but that little ruse is fast becoming unpopular with government and the people - it always was with the bloggers.) having used Barnet as the filling in a Capita / Serco sandwich.

It looks to Mr Mustard like things didn't go well in procurement for Mick.

The rumours are Mick that you were brought in as you worked with Andrew Travers at the LDA. Now that might just be co-incidence but as there are now a number of other ex LDA staff in procurement at Barnet the coincidence might soon stretch a bit thin. Mr Mustard knows of three but if you, dear reader, know of any, do please send an email in confidence from a private email address to mrmustard@zoho.com

The LDA is being closed so their staff have to go somewhere. No need for you all to head to Barnet now is there?


It looks like Mick caught that nasty allergy to PAYE that has been going around. Mr Stokes is a Director of JDA Procurement Consultancy Ltd which was only incorporated on 7 June 2011 ( company number 07660750 ) and is registered in Loughton which, for once, isn't a million miles from Barnet. The word is that £600 a day was paid to Hays HR. Mr Mustard also hears that you have gone off to help with the Olympics; you should enter for the sprint, the speed you high-tailed it out of Barnet you are bound to get gold.

How is the contract situation now in Barnet Mick? Did you get everything under contract before you left? No, Mr Mustard thought not. Will it get better now? Absolutely not. Here is a Q&A from the last full meeting of Council on 24 January 2012


Question 15 Councillor Alan Schneiderman
What is the latest update on the percentage of contracts that are / are not in place for all Council suppliers
 

Answer by Councillor Daniel Thomas
Of the suppliers on the Corporate Register, 89% have a contract.

 

Only contracts above £25,000 have to go on the register. Sadly the question as to what percentage of eligible suppliers were on the contract register was not asked but we still have 11% non compliance some 9 months after the problem came to light. A glacial rate of progress.

We will have to wait and see what happens next.

Yours frugally

Mr Mustard

A statement of the bleeding obvious from Craig Cooper

Craig in blue, Mr Mustard in red.

a bit small to be Craig's monthly pay packet

 

Dear all

Later this afternoon the short list for the second phase of competitive dialogue for NSCSO will be published in the report for Cabinet Resources Committee, along with a business case update, revealing that the two bidders that scored highest in the evaluation of outline solutions were BT and Capita ( Ladbrokes refused to take any bets from the off). You will find the report here later today.

You have been invited to briefings this week to learn more about the contents of the report (but nothing of any consequence that you might tell a blogger about) from your service lead and members of the project team, and have the opportunity to ask questions.

This is a very significant milestone in this project, and I would like to thank everyone involved so far in getting us to this point. However there is a huge amount of work yet to come in the second phase of competitive dialogue, which is much longer and more detailed than the first. The outline solutions phase has proven to us that the business case is realistic (but the outside world is not convinced), but the job of the project team and service leads is now to focus hard on ensuring the two bidders’ proposals are fully developed into deliverable contracts that will genuinely meet the needs of the council and citizens for better, more innovative and customer-focussed services, within a smaller financial envelope. and Craig knows what a large financial envelope looks like as he gets one with £11,040 in it every month (before tax and NI - well done Craig - no Town Hall Tax dodging for you)

Your service lead and staff group representative will continue to provide a tenuous link between you and the project, and Kari will continue to keep you informed through the weekly messages.

If there are any specific questions you already have that you know you would like answered during the briefing, or didn’t get chance to ask at your briefing, please email them to onebarnet@barnet.gov.uk. Is my job going to Croydon or Bangalore or is it OK if I form a company with my colleagues and sign up some contracts for services with the council and its partners? We will provide a better service for less money than BT or Crapita.

Yours sincerely,

Craig Cooper
NSCSO Project Sponsor
How did my name end up on this poisoned chalice?

Finance Matters for Schools Ltd - an open letter

http://www.econintersect.com/index.htm

At 9am on 20 February 2012 the following email was sent with a copy to Lord Palmer in his capacity as Head of Audit
 

Dear Mr Cornelius and Mr Walkley,

We would like to draw to your attention the following information, and ask you to respond to some questions on a matter that we consider to be of serious public concern.

We have reason to believe that a Private Company registered as FINANCE MATTERS FOR SCHOOLS LIMITED
http://companycheck.co.uk/company/07814930

may have been formed with the intention of securing contracts with schools that currently purchase financial services from the Council.

We understand that all three Directors may be current employees of the Council.

First can you confirm that all three of these Directors are indeed Council employees?

If not, then the rest of our questions are not applicable.

If this is indeed the case, we would like to ask the following questions:


Are these individuals currently employed by the authority?

If one or more of these Directors are Council employees, can you confirm that it is not a breach of any regulations for employees to set up a private company whilst still being paid by the Council that will deal directly with services directly associated with their current employment?


Furthermore please confirm that they may continue to have access to confidential data, and that this would not secure unfair advantage over any other possible bidders for these services?

Do you know how many Barnet schools have given notice that they are terminating their contracts with Barnet Council Financial Services?

When did they give notice of termination?


What reason did they give for termination?

How many schools have signed contracts with FINANCE MATTERS FOR SCHOOLS LIMITED?


Were any senior managers including the section 151 officer aware of this company


Have there been public and private discussions amongst senior managers on the creation of this new company within the Council?


We understand that Financial Services to schools are included in the NSCSO One Barnet bundle of services.


It would seem extraordinary, therefore, to us as residents, that council staff could allegedly be openly touting for business during the Competitive Dialogue process, and we would ask you to confirm that an urgent investigation should take place, and that you can assure us that all four bidders will be informed that such an investigation is in progress.


Yours sincerely,


Derek Dishman
John Dix
Vicki Morris
Theresa Musgrove
Roger Tichborne

---

And now some additional views on the subject from Mr Mustard.

The staff involved in this venture have done the right and the wrong thing. The council have also erred.

Firstly the council should have opened up all services to in-house bids and let the £75m p.a. of work in discrete sections by directorate. That way, the experts who currently provide these services, could have bid openly and honestly. Undoubtedly most of those bids would be below what the likes of BT, Capital and Serco would bid as there would not be a huge overhead to fund. This would also have made the staff feel more valued. Currently they are being sold like cattle at the market. If they were given a true and fair chance to bid, with the same access to the data room as every other bidder there would have been a level playing field and following a fair competition they might have gone willingly to another winning bidder. 

Most residents would be pleased to see lots of small businesses being created in Barnet by Barnet residents rather than some faceless multi-national get the work.

There are questions about what the council knew about this. If any management knew and have not told the 3 employee-directors to resign and take their chance in the marketplace then management has erred and it is management who should be disciplined before the employee-directors. 

The way this should have been done is that the employee-directors could take soundings from colleagues and schools and once it was obvious that they had a viable plan, without using any council data except what is already published or available under FOI, then resigned. At that point the council should send them home on gardening leave and restrict access to systems. The employee-directors can then sell their services as a private company to Barnet schools and those of the surrounding councils. Naturally they will have the advantage of knowing who to talk to at each school in Barnet but that is just information in their heads which they are entitled to use and is probably on each school's website anyway. The school is likely to favour a known supplier in any event; that is just human nature.

The employee-directors have jumped the gun. Given the "Town Hall tax dodging" ( copyright: Eric Pickles MP ) example being set at a high level by the Chief Finance Officer, the Assistant Director of HR and others, Mr Mustard can see why ethical values might have slipped amongst the staff especially whilst they are living under the threat of One Barnet outsourcing and have seen Croydon, or worse, Bangalore, looming on the horizon.

The full story will come out in time. Has management been culpable of moral failure?

Yours frugally

Mr Mustard

Freedom of Information - the view from Barnet

The Justice Select Committee are conducting a review into the workings of the Freedom of Information Act, which you can see on this link here.

The three main areas for enquiry are:-

• Does the Freedom of Information Act work effectively?
• What are the strengths and weaknesses of the Freedom of Information Act?
• Is the Freedom of Information Act operating in the way that it was intended to? 

Two Barnet residents submitted their memoranda to the Committee.

One was Dr Julia Hines and although she has written a very well structured and flowing memo she rather modestly asked me to simply provide a link to it.  This is partly because her use of the FOI legislation has been low and partly because she thinks there are other points you should read if you have time to peruse the 100+ submissions which are here. Click on the words "pdf version" to the left middle of the screen. The download is large. Julia's contributions is at FOI.09. Mr Mustard will see you in an hour or two.

Mr Mustard's contribution was at FOI.37 (he had more to say so it took longer to write and had to be edited down to 3000 words) and to save you getting sucked into that big pdf again Mr Mustard has the permission of the Committee to reproduce his memo here

Mr Mustard's Memo to Justice Select Committee on FOI


So now you know how much Mr Mustard, and his fellow Barnet bloggers, have to struggle to get at the truth.

Yours frugally

Mr Mustard

How long before the pigeons come home to roost?

www.motifake.,com

Mr Mustard has permission to borrow the following text from Unison Barnet. 

The staggering news coming out of Somerset reinforces Barnet UNISON's concerns about the evidence to support the savings claimed by the One Barnet projects.

SouthwestOne involves one of the biggest multinational companies in the world. It was touted as a no brainer by its supporters. It was shrouded in secrecy, but residents, politicians and staff were told it was the best way to prepare for the future.

The comments coming from the Conservative Leader of Somerset Council are extraordinary:

"failing to deliver promised savings; failing to cope with a changing financial landscape; failing to be flexible enough to adapt in challenging times and provide the best possible value for money."

All of these points have been repeatedly raised by UNISON is the countless number of reports we have been producing over the last four years.

Take a look at the latest news coming out of Somerset.

The Conservative leader of Somerset County Council, Councillor Ken Maddock

 "I have to say that Southwest One is failing this test. We are currently looking at all our services and all our contracts to see whether we are doing the best we can for our customers, whether we are providing the best possible services for our customers and at the best possible prices for our customers.

"We need a council that can cope with future government cuts and rising demand.

"Sadly, Southwest One is failing. It is failing to deliver promised savings; failing to cope with a changing financial landscape; failing to be flexible enough to adapt in challenging times and provide the best possible value for money.

 www.tauntonpeople.co.uk Budget cut private policy fails

Somerset County Council says SouthWest One 'not delivering'

In 2007, the IBM won an administration and back office task contract, to save the Conservative-led authority about £180m, over 10 years.

"SouthWest One's accounts year-on-year, show losses, staggering losses, just published of £31m, and failures to meet modest savings targets," said Mr Maddock.

“Mr Maddock said as a result of its performance, a review would be carried out on all council services in order to achieve the savings it needed, a figure he estimated to be £20m.”

www.bbc.co.uk

Southwest One gets £10m IBM loan amid 'staggering' losses

The leader of Somerset county council, Ken Maddock, has said that Southwest One is failing to deliver, that its accounts show "staggering losses" of £31.5m and "failures to hit modest savings targets".

Southwest One was set up in 2007 as a joint venture between IBM, Somerset county council, Taunton Deane borough council and Avon and Somerset police to modernise the public sector bodies' business processes.

Maddock told a council meeting: "It is failing to deliver promised savings; failing to cope with a changing financial landscape; failing to be flexible enough to adapt in challenging times and provide the best possible value for money."

www.guardian.co.uk southwest one ibm loan council

IBM hook-up with councils loses £31.5m By Gill Hitchcock, Guardian Government Computing, 17 February, 2012

The leader of Somerset county council, Ken Maddock, has said that Southwest One is failing to deliver, that its accounts show "staggering losses" of £31.5m and "failures to hit modest savings targets".

ibm hook up with councils loses £315m

'Failing' Southwest One comes under fire from Somerset County Council leader

A controversial venture set up to save taxpayers millions of pounds has lost £31 million and is so inflexible that it is making the job of finding savings even harder.

The Conservative leader of Somerset County Council, Councillor Ken Maddock, launched a blistering attack on the public-private partnership Southwest One at the council’s packed budget-fixing meeting yesterday.

www.thisissomerset.co.uk Failng Southwest

Southwest One receives IBM rescue loan

Southwest One, the troubled West Country council shared services venture, has confirmed it has received urgent funding from its supplier.

IBM has issued a multimillion pound loan to Southwest One, in order to keep the venture afloat. Southwest One, in its latest annual accounts issued this month, reported a £31 million loss.

southwest one bailed out by ibm

The question which one can probably answer without even asking is whether the story from Somerset in the South West of England, hence the confusing name Southwest One (isn't that Westminster?) will change the minds of the councillors who are pushing One Barnet along. Simple answer, no, not yet. Only when they don't get the pudding will they look again.

Yours frugally

Mr Mustard 

PAYE - an open letter to Nick Walkley

Sent: Friday, February 17, 2012 10:38 AM
To: 'Walkley, Nick' ( he was out-of-office at that time )
Cc: 'Cornelius, Cllr Richard Conservative'
Subject: My idea #6 - PAYE




Dear Mr Walkley

This is an open letter from Mr Mustard.

The wheeze of paying staff as if they are self-employed consultants is starting to look like a very bad idea following the Ed Lester (Student Loans Company) furore and Barnet Council are probably going to figure quite highly in the newspapers because heavy use has been made of this artificial device.

I have been asking FOI questions about the tax status of various "employees" and will keep on doing so until the whole story is out. I am sure that lots of other people (and I don't just mean the famous five Barnet bloggers) will be asking lots of similar questions and the performance of the over-stretched and under-resourced FOI section is going to suffer.

You might like to consider the wisdom of getting this sorry saga over and done with, and save the FOI section having to answer multiple similar questions, if you were to come out and say that the practice has now been stopped in Barnet. You should publish a list of the people who have had their tax status reviewed giving their name, title, old consultancy rate and new salary (I am sure they are all on more than £58,200 p.a. so count as senior employees whose salary details fall due for disclosure)

Yours sincerely

p.p. Mr Mustard

Three cheers for Uncle Eric ( The Rt Hon Eric Pickles MP )

The famous five Barnet bloggers are, despite their different political views, fans of Uncle Eric since he nailed his colours to the openness and transparency mast.

Photo credit : Martin Argles of www.Guardian.co.uk

The dubious tax treatment of local council employees had been the subject of countless blog posts. Then David Hencke turned up the Ed Lester, Student Loans Company situation and the hare was running. David Alexander, the Chief Secretary to the Treasury extended the scope of a review for top civil servants and now Eric Pickles has stepped in and ordered a review at local authorities. Barnet Council executive suite must be an interesting place today. 

Eric Pickles: 

New local pay guidance to help tackle tax avoidance
Published 16 February 2012

Government rules to open up Town Hall pay practices and senior salaries to public scrutiny now include measures to root out any inappropriate tax avoidance arrangements, Local Government Secretary Eric Pickles announced today.

Chief Secretary to the Treasury, Danny Alexander has set out the Government's commitment to tackling all forms of tax avoidance. As local government is also paid from the public purse Mr Pickles has issued new statutory guidance that addresses the matter.

The Localism Act requires councils to publish and be accountable for their pay policies, helping to ensure that local remuneration arrangements - particularly for chief officers - provide value for money for the whole of the public sector.

The Government's associated guidance on Openness and Accountability in Local Pay published today now states that authorities should review the terms of senior appointments, particularly where arrangements could be perceived as seeking to minimise tax payments.

It specifically states that councils should vote on salary packages for employees greater than £100,000 a year. Councils should also publicly justify any big bonuses, above inflation pay rises, or the recruitment of staff already in receipt of public sector retirement or severance money.

Elected councillors have until the end of next month to approve pay policy statements that should include explicit local policies on all the above practices and whether or not they intend to permit any of these sorts of arrangements.

At a time when the public are worried about the cost of living and all parts of the public sector should be making savings, this action will give taxpayers the clearest evidence possible that value for money has been considered in pay policies.

Eric Pickles said:

"Opening up the pay deals of top Town Hall jobs to public scrutiny will mean taxpayers know with certainty their interests are being protected.

"Local people have a right to know whether any Town Halls allow tax arrangements that could short change the public purse; whether bumper bonuses are being awarded to poorly performing workers; or whether pay is being hiked up for execs who've boomeranged from post to post.

"The door to council pay practices is being unlocked by the Localism Act - local authorities must now publicly endorse their pay practices by next month. Doing this will reassure residents that local pay is fair, fit for purpose and fully 'democracy proofed'."

Mr Pickles has previously called for council chief executives earning over £200,000 to take a ten per cent pay cut and those earning £150,000 - more than the Prime Minister - to take a five per cent pay cut. Independent research has found that between January and June 2011 newly appointed chief executives were earning on average 19 per cent less than their predecessors.

Here is the guidance:

Openness and accountability in local pay: Guidance under section 40 of the Localism Act

There are some interesting points in the guidance. 

Para 14 might allow for the ridiculous and excessive pay levels to be curbed.

Para 22 could mean that Nick Walkley does not get paid for being the returning officer and the chief Executive at the same time even though he can only properly do one job at a time.

Para 24 Value for Money. Some senior officers are certainly not worth what they get paid. Salaries should max out at £100,000.

Para 28 seeking to minimise tax payments. Plenty of evidence of that in Barnet.

Well done Uncle Eric, commonsense has prevailed.

Yours frugally

Mr Mustard