Bankers who torpedoed the economy are set to get away with it after all

Tags

Andrew Green QC, Andy Hornby, bank, banker, Banking Standards, Coalition, Conservative, crisis, David Cameron, Democrat, economic, economy, FCA, financial, Financial Conduct Authority, Financial Services Authority, fred goodwin, fred the shred, FSA, fund, George Osborne, government, HBOS, James Crosby, Johnny Cameron, Lib Dem, Liberal, Lord Stevenson, maxwellisation, Mike Sivier, mikesivier, Mirror, Parliamentary Commission, pension, Peter Cummings, politics, Private Eye, RBS, recession, Robert Maxwell, Royal Bank of Scotland, Tom McKillop, Tories, Tory, Vince Cable, Vox Political

Not even this many: This Economist cartoon paints a false picture of the situation. The magazine has stated: “In Britain, which had to bail out three of its biggest banks, not one senior banker has gone on trial over the failure of a bank.”

Here’s a word that should be in all our dictionaries but probably isn’t: ‘MAXWELLISATION’.

It refers to a procedure in British governance where individuals who are due to be criticised in an official report are sent details in advance and permitted to respond before publication. The process takes its name from the late newspaper owner Robert Maxwell, who fell off a yacht after stealing the Mirror Group’s pension fund.

Maxwellisation is how the irresponsible bankers who caused the economic recession, out of which some of us have just climbed according to the latest figures, are likely to get away Scot (and the word is used most definitely in reference to the land north of England) free.

Current folk wisdom has it that most of us are still unhappy about the banking crisis. We want to see heads roll.

This is a serious headache for the Coalition government, according to Private Eye (issue 1371, p33: ‘Call to inaction’) – because almost nobody involved in that fiasco is likely to suffer the slightest inconvenience.

They really are going to get away with it because the government of the day really is going to let them.

It seems that Andrew Green QC has been hired to find out whether action could and should be taken against those who bankrupted HBOS, beyond corporate lending chief Peter Cummings, who has already been banned for life from the industry and was fined half a million pounds in 2012.

That might seem a lot of money but the HBOS crash, along with that of the Royal Bank of Scotland, cost the taxpayer £60 billion (along with who-knows-how-much in interest payments).

Mr Green has also been asked why HBOS chief executives James Crosby and Andy Hornby were untouched, along with chairman Lord Stevenson.

For the facts, he need look no further than what happened with RBS, the Eye reckons.

In 2010, the Financial Services Authority – discredited forerunner to the FCA – allowed (allowed!) RBS’s top investment banker Johnny Cameron to ban himself from another senior banking job. The following year it pronounced chief executive Fred ‘The Shred’ Goodwin and chairman Sir Tom McKillop effectively blameless. Mr ‘The Shred’ was stripped of his knighthood, however.

This whitewash appears to have been an embarrassment for business secretary Vince Cable, who announced in December 2011 that he wanted to prosecute, disqualify as directors or ban from the financial sector those responsible at RBS and passed his request for disqualification up to the Scottish law officers in early 2012.

He is still awaiting an answer, it seems.

Back to HBOS, where Cable has made “similar disqualification noises”, according to the Eye, after a “highly critical” report from the Parliamentary Commission on Banking Standards last year.

Unfortunately for him, not only is HBOS also based in Scotland, so any proceedings may have to follow a similar path to those involving RBS, but also the FCA’s report into the bank’s failure is currently “unfinished”.

This is because it is being “Maxwellised” – according to the Eye, “whereby lawyers for those in the frame (if allowed) remove anything critical of their clients”.

The report continues; “With RBS, ‘Maxwellisation’ took several months and resulted in the whitewash that made any future action against those found not guilty difficult, if not impossible.

But the public wants heads to roll! Will anybody get what’s coming to them?

According to the Eye, the answer is a qualified “yes”.

Only one boss of HBOS still has links with any organisation regulated by the FCA – James Crosby is a director of the Moneybarn sub-prime car finance group and its parent, the Duncton Group. The FCA took over regulation of the consumer loan industry in April and has until December 2015 to provide full approval to the Moneybarn operation. The Eye states: “By then chairman Crosby would have to pass its ‘fit and proper’ test. He is completely unauthorised. So, a low-hanging scalp.”

Beyond that, expect “a wringing and washing of Coalition political hands, blaming legal loopholes, failures of others and it-was-all-a-long-time-ago”.

It is possible that other directors could be offered the Johnny Cameron deal – agree not to be a director for a few years “and this will all go away quickly and cheaply with no public hearings”.

Cable – along with George Osborne, David Cameron and any other Coalition MP who claimed that they were making laws to ensure the bankers responsible would face prison sentences – will simply walk away from the whole affair and hope that you forget about it.

Are you going to let that happen?

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Buy Vox Political books!
Health Warning: Government! is now available
in either print or eBook format here:

The first collection, Strong Words and Hard Times,
is still available in either print or eBook format here:

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

DWP’s shame: Facts reveal how ministers duped the press

Tags

allowance, andrew dilnot, AoI Money, Atos, BBC, Belfast Telegraph, benefit, benefits, Business Standard, Channel 4 News, cheat, claim, conflate, Conservative, Daily Mail, Department, Descrier, disability, Disability Confident, disabled, DWP, employment, ESA, esther mcvey, Evening Standard, fiddle, figure, fit, fit for work, for purpose, fudge, Gloucester Citizen, government, health, Huffington Post, IB, iLegal, Incapacity Benefit, International Business Times UK, lie, Malcolm Harrington, mark hoban, Metro, migrate, Migration, Mike Sivier, mikesivier, Mirror, Pensions, people, politics, press, Press TV, Professor, release, self employ, sick, SME Times, social security, statistic, Sue Marsh, support, tax credit, The Times, Tories, Tory, uk statistics authority, unemployment, unfit, Vox Political, WCA, welfare, work, work capability assessment

Lest we forget: We know that, on average, 73 people died every week between January and November 2011 – after undergoing the DWP work capability assessment administered by Atos. Who knows how many are dying now?

Today the DWP finally released its press release claiming that huge numbers of people who wanted Employment and Support Allowance have been found fit for work instead.

Interestingly, the DWP story differs from that published by the BBC, even though the corporation must have used a version of the press release provided to it in advance.

In the BBC story, released on Saturday, “More than a million others withdrew their claims after interviews” – but the DWP press notice, released today, claims “More than a million others withdrew their claims before reaching a face-to-face assessment”.

In addition, the DWP release features a long section on its Disability Confident roadshow, and there is another statistic which claims that the proportion of disabled people in work has reached 45 per cent.

Disability Confident, designed “to encourage more employers to hire disabled people”, “to showcase the talents of disabled people and highlight their tremendous value to the British economy” is, on the face of it, a good idea.

But I wonder if it isn’t a smokescreen to hide how the DWP is pushing thousands of disabled people into saying they are self-employed and taking tax credits rather than ESA, in order to fudge the figures and make it seem as though good work is being done.

Vox Political reported on this before ,and it is worth adding that the BBC itself ran the original report that work advisers were pushing the jobless into self-employment.

Oh, what a tangled web we weave, when first we practise to deceive…

Of course, the best source of ESA-related statistics is on the iLegal site where the figures behind the press release have been picked apart by an expert who doesn’t have a vested interest in saving ministerial face.

They show that an average of 83 per cent of the 1,078,200 Incapacity claimants who were assessed qualified for ESA between October 2012 and May last year, while 88 per cent of the 1,332,300 ‘repeatedly assessed’ were re-qualifying.

While the DWP and the BBC have claimed 1.8 million people have magically disappeared from the Incapacity/ESA claimant count, the DWP’s own figures confirm that overall numbers have reduced by only 156,630 since May 2010.

The iLegal article makes it clear that “the claimant count is far from a static number; each month thousands of claimants come on and off all benefits”. But it seems clear that the BBC/DWP figure is a conflated total, simply adding up all new claims – rather than claimants – from 2008 onwards.

This is exactly why UK Statistics Authority chief Andrew Dilnot chastised the government after the Conservative Party released an almost-identical press release last year, using then-current (but still inaccurate) figures and not mentioning Disability Confident.

Let’s go back to the number of people found ‘fit for work’ after assessment. Has everybody forgotten the hammering that the government took during a debate on Atos’ handling of the Work Capability Assessment, exactly a year and a week ago today? If you have, don’t worry – you can read all about it here.

The debate demonstrated time after time that the work capability assessment, as devised by the DWP’s Conservative ministerial team and run by its employees at Atos, was not fit for purpose; that the overwhelming majority of those who had been found ‘fit for work’ were nothing of the sort; and that “this is a government that is perfectly happy with a system that is throwing thousands of sick and disabled people to the wolves”.

The government refused to listen. Then-Employment minister Mark Hoban (standing in, conspicuously, for Esther McVey, who was minister for the disabled at the time) said the independent reviews conducted by Professor Malcolm Harrington had identified areas of improvement and appropriate steps were being taken.

This claim was false. Out of 25 recommendations made by Professor Harrington in his year one review alone, almost two thirds were not fully and successfully implemented.

The government also claimed, repeatedly, that Prof Harrington had supported the migration of Incapacity Benefit claimants to ESA. When fellow blogger Sue Marsh contacted him for confirmation, he responded: “I NEVER—repeat–NEVER agreed to the IB migration. I would have preferred that it be delayed but by the time I said that, the political die had been cast. I then said that i would review progress of that during my reviews. The decision was political. I could not influence it. IS THAT CRYSTAL CLEAR?”

I’d say so – to everybody but the Coalition government.

Now:

A good reporter at the BBC would have had all this information to hand. They would have known that the work capability assessment was extremely controversial and had been shown, many times, to be unfit for purpose. They would have known that the government had been slapped down by the UK Statistics Authority after releasing an almost-identical press release last year. They absolutely should have known that other reporters in the same organisation had revealed that the DWP had been pushing disabled people into claiming they were self-employed in an effort to cook the books.

With all that information to hand, it begs the question: Why did they then go ahead with the propagandised misrepresentation of the facts that appeared on the BBC News website on Saturday?

And, before reporters at Business Standard (“A million Britons found lying for illness benefits“?), the Belfast Telegraph, International Business Times UK, Metro, The Times, Channel 4 News, Press TV, Descrier, SME Times, AoI Money, The Mirror, Gloucester Citizen, Huffington Post, Evening Standard, and especially the Daily Mail, whose article was hysterical in both senses of the term, allow me to ask…

What’s your excuse?

Vox Political is not a part of the mainstream media!
The site needs YOUR help to continue.
You can make a one-off donation here:

Alternatively, you can buy the first Vox Political book,
Strong Words and Hard Times
in either print or eBook format here:

Another Tory ‘bait-and-switch’ scam – shares-for-rights scheme is employers’ tax dodge

Tags

'Starve the Beast', Another Angry Voice, avoidance, bait and switch, budget, capital gains, Coalition, congress, Conservative, Corporation Tax, debt, deficit, dodge, economy, employee owner, employee shareholder, evasion, flexible working, George Osborne, government, Mike Sivier, mikesivier, Mirror, OBR, observer, office, people, politics, redundancy pay, responsibility, rights, shares, social security, statutory, tax, Tories, Tory, trade, training, TUC, unemployment, unfair dismissal, union, Vox Political, welfare, work, workers

“This government is taking action domestically on [tax] avoidance and evasion,” wrote George Osborne in an article for The Observer, back in February. How right he was.

The Tory-led Coalition has done everything in its power to facilitate tax avoidance and ignore evasion, it seems, including the latest wheeze, which is to link it with a feeble attempt to get working people to throw away their rights in exchange for a few shares.

The BBC has reported that the new status of “employee shareholder” has come into force, allowing working people to claim shares in the company that employs them, if they give up the rights to claim unfair dismissal and statutory redundancy pay, the right to request flexible working (except in the case of two weeks’ parental leave), and some rights to request time off for training.

Nobody in their right mind would do this and expert opinion is that take-up will be small. So why do it?

Well, it’s not about the workers at all. It’s about helping company bosses avoid paying their taxes. Even the right-wing-leaning BBC was unable to cover up the facts (although it left them until the end of the article):

“Companies can also claim some corporation tax deductions on the issuance of shares to employees.”

Yes – it’s a tax dodge!

Here’s how it works, according to the Mirror: “New analysis show[s] it could also allow executives to avoid paying revenue on company shares. Tax experts commissioned by the TUC believe ruthless bosses could classify themselves as ’employee owners’ to escape Capital Gains Tax. And the Office for Budget Responsibility estimates the scheme could cost up to £1 billion, mainly due to tax avoidance.”

This will, of course, involve a drop in tax income to the Treasury, meaning increases in the national debt and deficit, which the Tories will no doubt use to justify further cuts to public service budgets as part of their ‘Starve The Beast’ agenda. Remember, this country has a chancellor who, for ideological purposes, actually wants to harm the British economy.

Meanwhile, as our friend at Another Angry Voice has put it: “If you’re thick enough to cash in your labour rights for a few grand worth of shares in the company you work for, then in a couple of years time when people are calling you ‘feckless’ for being unemployed, you’ll be one of the minority that actually deserve it (and your shares might well be worth only pennies in the pound compared to the value they had when you scrapped your labour rights to get them).”

Iain Duncan Smith has committed contempt of Parliament and should be expelled

Tags

advance, andrew dilnot, anecdotal, anecdote, benefits, budget, cap, change.org, committee, contempt, data, Debbie Sayers, debt, deliberate, Department, DWP, expel, Frances O'Grady, general, Guardian, Iain Duncan Smith, Jayne Linney, Katherine Trebeck, Media, Mike Sivier, mikesivier, Mirror, mislead, national, NHS, Oxfam, Parliament, Pensions, petition, secretary, share, sharing, suspend, TUC, uk statistics authority, Vox Political, work

It’s a whopper: How big do you think Iain Duncan Smith’s next Parliamentary exaggeration of the truth will be?

Why is Iain Duncan Smith still a member of Parliament?

Apparently there is an offence, here in the UK, known as Contempt of Parliament. An MP is guilty of this if he or she deliberately misleads Parliament, and any MP accused of the offence may be suspended or expelled.

Our odious Work and Pensions secretary is a repeat offender. It is one thing to be “economical with the truth”, as the euphemism goes; it is entirely different to present known falsehoods to the House of Commons as though they were accurate.

Smith’s latest wheeze involves a press release released by his Department of Work and Pensions last month, in which he is quoted as follows: “Already we’ve seen 8,000 people who would have been affected by the [benefits] cap move into jobs. This clearly demonstrates that the cap is having the desired impact.”

There is no evidence to support the claim. This has been made clear by Andrew Dilnot, chair of the UK Statistics Authority, who said in an open letter yesterday (Thursday) that it was “unsupported by the official statistics published by the department”.

He added that an explicit caution had made it clear that the statistics used by Smith to support his claim were “not intended to show the additional numbers entering work as a direct result of the contact”.

In addition, figures released alongside the statement do not comply with the UK’s codes and practices on statistical releases, and concerns have been raised about the methodology and sourcing, along with possible advance sharing of the data with some – sympathetic? – media outlets.

As an aside, it seems unlikely that Mr Dilnot realised, when he accepted his role at the statistics authority, that it would be such a high-profile role. How many people had even heard of it before the Tory-led Coalition government came into power? Precious few, one suspects.

Yet it has now become a household name, due to the Tories’ continued and persistent use of faked statistics.

They claimed the NHS budget was rising when it had fallen – and only yesterday we saw one consequence of this; the critical strain facing accident and emergency units. Remember, many hospitals are having their A&E units closed, adding to the strain on those that are left. Why is this happening, if not to save money?

They also claimed – in a party political broadcast, no less – that the national debt was falling when in fact it has risen massively over the course of this Parliament.

And now this.

Smith is, as mentioned above, a repeat offender: He also stated recently that around a million people have been stuck on benefits for at least three of the last four years, “despite being judged capable of preparing or looking for work”. These figures were, of course, inaccurate – they included single mothers, the seriously ill, and people awaiting testing.

Oxfam’s Katherine Trebeck, policy and advocacy manager for its UK poverty programme, said in The Mirror that this was “beyond the pale”.

She said: “The vast majority of people who are out of work would jump at the chance to take a job that paid them a wage they can afford to live on.”

And the TUC’s general secretary, Frances O’Grady, said in The Guardian: “Only people with weak arguments need to make up statistics.

“The secretary of state needs to apologise – not just to Parliament, but to the many who cannot find jobs, for misusing his department’s statistics in this way.”

The DWP has issued a statement supporting Smith, but its argument is extremely weak. It said anecdotal responses of staff and claimants supported what he had said: “DWP staff and claimants are telling us the cap is impacting behaviour and leading to those affected finally entering the world of work.”

Anecdotal evidence is not fact and cannot be presented as such. Our good friend Wikipedia describes it in these terms: “Because of the small sample, there is a larger chance that it may be unreliable due to cherry-picked or otherwise non-representative samples of typical cases.Anecdotal evidence is considered dubious support of a claim; it is accepted only in lieu of more solid evidence. This is true regardless of the veracity of individual claims.^“

Manipulation of statistics by the DWP and its secretary of state prompted Debbie Sayers and fellow blogger Jayne Linney – who has supported Vox Political articles many times – to launch a petition on the change.org website, calling on Parliament’s Work and Pensions Committee to hold Smith to account for his habitual offences against government statistics.

The petition is here, and at the time of writing has more than 76,500 signatures. Please sign it if you haven’t already done so.

It’s time for Iain Duncan Smith – who remains, let’s all remember, Vox Political‘s Monster of the Year for 2012 – to put up or shut up. He must either admit that he lied to Parliament and to the people in order to justify his despicable treatment of the most vulnerable people in the country…

… or he must be expelled from Parliament like the disgrace that he is.

Follow me on Twitter: @MidWalesMike

Join the Vox Political Facebook page.

Vox Political needs your help!
This independent blog’s only funding comes from readers’ contributions.
Without YOUR help, we cannot keep going.
You can make a one-off donation here:

Alternatively, you can buy Vox Political books!
The second – Health Warning: Government! is now available
in either print or eBook format here:

The first, Strong Words and Hard Times
is still available in either print or eBook format here:

Osborne paddock update: Parliamentary Commissioner for Standards

Tags

2006, account, Act, Channel 4, code, commissioner, conduct, Dispatches, duty, evidence, expense, farm, fraud, George Osborne, Guardian, harrop fold, house, Independent, inquiry, Interest, land registry, libel, Mike Sivier, mikesivier, Mirror, mortgage, newspaper, paddock, Parliamentary, police, profit, report, responsibility, rules, standards, taxpayer, Telegraph, Vox Political

Shady: Why will the Parliamentary Commissioner for Standards NOT investigate the new evidence that has come to light about George Osborne’s expenses?

It seems the Parliamentary Commissioner for Standards is reluctant to examine the case of George Osborne, who paid mortgage interest on his paddock with taxpayers’ money before selling it off with a neighbouring farmhouse for around £1 million and pocketing the cash.

Mr Osborne, as is now well-documented, claimed mortgage interest on both properties as an allowable expense, stating that he needed the house to perform his duties as an MP. The paddock was registered separately with the Land Registry and was not mentioned in his expenses claim, but thanks to newspaper reports earlier this month, the nation understands that the money he received was used to pay for it.

Apparently this is not good enough for the Standards Commissioner. After I requested an inquiry, I received an email from Heather Wood, registrar of members’ financial interests. She wrote: “The Commissioner is able to inquire into complaints of a breach of both the Code and the rules of the House only if they are supported by sufficient evidence to justify an inquiry.

“Since the Commissioner has already inquired into Mr Osborne’s claims for his second home over the relevant period, there would need to be evidence of a breach of the Code of Conduct and the Rules of the House, other than that he had already investigated, before he could consider this matter further. That evidence would need to be sufficient to justify an inquiry.”

She went on to provide a link to the result of the previous inquiry. I read it very thoroughly but could find no mention whatsoever of the paddock at Harrop Fold Farm.

From the evidence provided by the commissioner’s office, I can only conclude that Mr Osborne did not tell the authorities that the money he claimed – in order, let’s remember, to discharge his Parliamentary responsibilities – would also partly pay for an empty field that he planned to sell for an exorbitant profit, years later.

To me, this is clearly accounting fraud, which is a criminal offence under the Fraud Act 2006.

The only reason I can find for the reluctance shown by the Commissioner is that my evidence comes from newspaper reports, and the guidance on submitting complaints does make it clear that such evidence may not be enough.

However, it seems clear that there is substance behind the allegations. Firstly, the evidence was transmitted in a Channel 4 Dispatches documentary on TV; then the Telegraph, Guardian, Mirror and the Independent all came out with corroborating reports. They would not do this without being able to back up what they were saying; if the details were false, then they would all have been guilty of libel, which is itself an offence – and I am sure Mr Osborne would be quick to pursue them through the courts in such circumstances.

He has not done so. What does this suggest to you?

My next step will be to write to the reporters concerned. I’ll need to ask them if the evidence to support their stories is publicly available and, if so, where I can find it. Then I’ll have another crack at the Commissioner. If any of the reporters concerned are reading this, please get in touch and provide any illumination you can – I think we would all be genuinely delighted to see your contribution.

Oh – there is one last line from the registrar, as follows: “Your e-mail also suggests that criminal conduct may have occurred. Any such allegations would be a matter for the police, not for the Commissioner, and I note that you have already raised this matter with them.”

That’s right – they said they couldn’t investigate because an inquiry was already taking place, and I’m still awaiting a response from my MP on that subject. Isn’t it interesting that the responses I’m getting are starting to go around in circles?

I’ll keep you all informed of progress.

End of Paralympics signals benefit loss for athletes

Tags

athletes, Atos, benefit, benefits, budget, Coalition, Conservative, dance, dancer, David Cameron, Derek Derenalagi, destabilise, destablising, disability, Disability Living Allowance, disabled, discus, DLA, Employment and Support Allowance, ESA, family, footballer, George Osborne, government, health, Incapacity Benefit, Keryn Seal, Laura Jones, Liberal, Liberal Democrat, make work pay, Mike Sivier, mikesivier, Mirror, opening ceremony, paralympian, Paralympic, Paralympics, Parliament, people, Personal Independence Payment, PIP, pogrom, politics, Sunday Mirror, Team GB, Tories, Tory, Universal Credit, Vox Political, wheelchair, work capability assessment

So the Paralympics will be over after today, then. It must be time for the Coalition government to start taking away our athletes’ disability benefits. After all, they have proven they’re fit enough to work and therefore don’t need them. Right?

Some of us saw this coming, weeks in advance. We knew that, once the chance for profile-boosting photo opportunities were over – whether or not they backfired, Mr Osborne – the disability pogrom would be extended to paralympians.

And that’s what is happening, according to today’s Sunday Mirror.

Team GB footballer Keryn Seal is blind and relies on his £70 per week Disability Living Allowance to get to training. He fears for what will happen to himself and hundreds of thousands of other disabled people when DLA is replaced by the more restrictive Personal Independence Payment as part of a plan to cut £2.2 billion from benefit costs.

“I can’t understand why the Government would dream of taking this money away from us. It shows a complete lack of empathy,” he told the Mirror.

“Disillusioned, disenchanted and disappointed are all words I would use to describe how I feel about the Government.”

Double-amputee Derek Derenalagi, who came 11th in the discus, said the changes would have a “devastating” effect: “Not every Paralympian is sponsored and we would hugely struggle without it. We do not get paid like footballers and it really helps us.”

And wheelchair dancer Laura Jones, a star of the Paralympics opening ceremony, said she was worried her £50-a-week payment is under threat.

She told the Mirror: “If people miss out on leisure activities and sports, they end up stuck at home and that will obviously be worse for their health.”

Another thing that looks as though it will be worse for people’s health is the Universal Credit, which the government is touting as “the most radical redesign of the benefits system this country has ever seen”, adding that it will ensure that it pays people to work rather than claim benefits.

What did I say yesterday about this lie? Oh yes: “Forcing people off of a benefit system that doesn’t pay their costs and into a job that doesn’t pay their costs is no solution at all and any Tory who spouts this nonsense in the media is to be mocked and targeted for unseating at the next election (in my opinion).”

Honestly… Do they think we’re not paying attention?

It seems there are problems with a plan to pay the new credit only once a month, meaning it will make a mess of people’s budgeting plans and they may be unable to make ends meet.

Also, the plan to make it payable to only one member of a household is likely to cause friction and upset the family dynamic – possibly destabilising family groups and leading to splits.

Bear in mind also that this is another continuation of the attack against disabled people, as the new credit will replace, among other things, Employment and Support Allowance. I wonder if Atos will be interviewing all its disabled ‘clients’ yet again, to find out if their missing limbs have grown back yet?