Select Committee · Public Administration and Constitutional Affairs Committee

Propriety of governance in light of Greensill

Status: Closed Opened: 11 May 2022 Closed: 9 Oct 2023 13 recommendations 29 conclusions 2 reports

The collapse of Greensill Capital and the subsequent revelations about its relationship with government and Whitehall have raised significant concerns about the propriety of governance in this country. In April 2021, PACAC launched an inquiry into the effectiveness of rules to prevent conflicts of interest and regulation of access by current and former politicians and …

Clear

Reports

2 reports
Title HC No. Published Items Response
Fourth Report - Propriety of Governance in Light of Greens… HC 888 2 Dec 2022 25 Responded
Third Report - Propriety of Governance in Light of Greensil… HC 59 22 Jul 2021 17

Recommendations & Conclusions

9 items
1 Recommendation Fourth Report - Propriety of Governance… Not Addressed

The Cabinet Secretary denied that there is a lack of resource dedicated to compliance issues...

The Cabinet Secretary denied that there is a lack of resource dedicated to compliance issues in Government but admitted that there is a “brigading issue” of making them work together. We accept that Nigel Boardman’s proposal for a Compliance Function might create difficulties by cutting across current compliance operations located …

Government response. The Government states it is not bringing forward new primary legislation to underpin the roles, remits, and codes of standards bodies, failing to provide an update on addressing the 'brigading issue'.
2 Conclusion Fourth Report - Propriety of Governance… Not Addressed

The threat of legal action and the resulting sanction for breaching the Business Appointment Rules...

The threat of legal action and the resulting sanction for breaching the Business Appointment Rules would, in our view, be a sufficient deterrent to ensure that such action would be needed only rarely.

Government response. The government's response discusses the Model Services Contract and HM Treasury guidance on Novel Financing Arrangements, implementing Boardman review recommendations related to Supply Chain Finance, which is unrelated to the recommendation.
9 Recommendation Fourth Report - Propriety of Governance… Not Addressed

The Commissioner for Public Appointments should be placed on a statutory basis in an Act...

The Commissioner for Public Appointments should be placed on a statutory basis in an Act of Parliament at the earliest opportunity. The legislation should make clear that the Commissioner’s role is to ensure that public appointments made by Ministers are in compliance with the Governance Code. It should also detail …

Government response. Minister must therefore retain the ultimate right to make a determination on whether or not a Minister has breached the Ministerial Code. The Independent Adviser's role is to provide advice to support that decision making.
12 Conclusion Fourth Report - Propriety of Governance… Not Addressed

We have seen the extensive scope for Ministerial discretion in the public appointments process and...

We have seen the extensive scope for Ministerial discretion in the public appointments process and that, in addition to the self-restraint of Ministers, the role of the Commissioner has been vital in ensuring that the principles in Governance Code have been adhered to. The Chairs of the other ethics watchdogs …

Government response. The government agrees that a MoU or Framework Document is essential to clearly set out the roles and responsibilities for it and ACoBA, which is unrelated to the conclusion regarding Ministerial discretion in the public appointments process.
14 Conclusion Fourth Report - Propriety of Governance… Not Addressed

Too often, the Government has appeared to approach the pre-appointments process as a tick box...

Too often, the Government has appeared to approach the pre-appointments process as a tick box exercise rather than an important component in the public appointments process. The Committee’s patience in this respect is not limitless. We are aware that this frustration is shared by other Select Committees. When making appointments …

Government response. The government's response discusses reforming the Register of Consultant Lobbyists.
15 Recommendation Fourth Report - Propriety of Governance… Not Addressed

To improve transparency, Cabinet Secretary Simon Case told the Committee that he considered the suggestion...

To improve transparency, Cabinet Secretary Simon Case told the Committee that he considered the suggestion that a register of direct appointments be maintained and published as “an obvious thing to do”.167 We agree and recommend that departments begin to compile and publish such registers immediately and that they are kept …

Government response. The government response discusses new guidance on Non-Corporate Communication Channels and reporting requirements for official business, but it does not address the recommendation to compile and publish registers of direct appointments.
18 Recommendation Fourth Report - Propriety of Governance… Not Addressed

Following the resignation of Rt.

Following the resignation of Rt. Hon. Suella Braverman MP as Home Secretary for leaking restricted material and her subsequent reappointment only a few days later, the Government has said the new Independent Adviser will not investigate matters surrounding her resignation as they took place under the previous Prime Minister. Determining …

Government response. The government's response discusses reforming the regulation of public appointments.
22 Conclusion Fourth Report - Propriety of Governance… Not Addressed

The position of the Prime Minister in relation to their compliance with the Ministerial Code...

The position of the Prime Minister in relation to their compliance with the Ministerial Code is a complex one. Whilst the Independent Adviser can initiate investigations into any suspected breach of the Code and should be able to issue private advice on appropriate sanction, it is ultimately for the Prime …

Government response. The government discusses the role of the Commissioner and other ethics watchdogs, and states that Ministers’ nominated candidates for these roles should require the endorsement of the relevant Select Committee, failing to address the conclusion regarding the Prime Minister's compliance …
25 Conclusion Fourth Report - Propriety of Governance… Not Addressed

The purpose of a stronger means of enforcing standards should not be seen by those...

The purpose of a stronger means of enforcing standards should not be seen by those in public life as a substitute for values, nor codes of conduct as the only guide to acceptable behaviour for those in public life. Individuals in public life must recognise the importance of personal restraint …

Government response. The government's response discusses improving transparency around lobbying.

Oral evidence sessions

9 sessions
Date Witnesses
12 Jul 2022 The Rt Hon Sir John Major KG CH View ↗
28 Jun 2022 Darren Tierney · Department for International Trade, Simon Case CVO · Cabinet Office View ↗
9 Jun 2022 Rt Hon Lord Pickles · Advisory Committee on Business Appointments View ↗
17 May 2022 Rt Hon Sir Peter Riddell CBE · Cabinet Office View ↗
15 Mar 2022 Sir Alex Allan · House of Commons, Sir Philip Mawer · House of Commons View ↗
11 Jan 2022 The Lord Evans of Weardale KCB DL · Committee on Standards in Public Life View ↗
2 Nov 2021 Nigel Boardman View ↗
13 Jul 2021 Propriety of governance in light of Greensill View ↗
8 Jun 2021 Bill Crothers · Cabinet Office, Ian Watmore · Cabinet Office, Sir John Manzoni KCB · Cabinet Office, The Rt Hon Lord Maude of Horsham · Member of the House of Lords View ↗

Correspondence

7 letters
DateDirectionTitle
25 Jul 2023 To cttee Letter from Rt Hon Oliver Dowden MP, Deputy Prime Minister and Chancellor of th…
25 Jul 2023 From cttee Letter to Rt Hon Oliver Dowden CBE MP, Deputy Prime Minister and Chancellor of …
23 Jun 2021 To cttee Letter from Suzanne Heywood on Propriety of governance in light of Greensill, d…
23 Jun 2021 To cttee Letter from John Manzoni on Propriety of governance in light of Greensill, date…
25 May 2021 Correspondence with Simon Case, Cabinet Secretary on propriety and ethics in Go…
26 Apr 2021 To cttee Letter from Simon Case, Cabinet Secretary on management of outside interests by…
26 Apr 2021 To cttee Letter from Chair to Simon Case, Cabinet Secretary on Audit of Civil Service du…