Ozouf: other ministers will also have to answer for failed fund

Wednesday 18 January 2017

Who was responsible for the Innovation Fund when it went bad? That's the question at the heart of the political fall-out from yesterday's resignation of one of the Island's most senior, and controversial, politicians.

In a dramatic first States meeting of the year, senior Ministers were under intense pressure yesterday following the recent revelations surrounding the Jersey Innovation Fund; Senator Philip Ozouf offered his resignation as Assistant Chief Minister - and his parting shot was that other Ministers may soon need to do the same.

It was a deeply confusing meeting of the States - firstly, Senator Ozouf's resignation statement was leaked on Twitter by Reform Jersey, more than an hour before he actually delivered it. 

Statement just handed to States Members by Senator Ozouf. pic.twitter.com/wHWUqbncII

— Reform Jersey (@ReformJersey) January 17, 2017

Secondly, later in the day the Chief Minister seemed reticent to actually use the word "resignation", preferring the much vaguer term "stepping aside," or to confirm that when Senator Ozouf did offer his resignation he would definitely accept it - finally the Bailiff had to step in:

"Chief Minister, I think the Assembly is entitled to be quite clear about the position, as indeed are the public; as I understand your answer, Senator Ozouf volunteered to step aside, he hasn't yet done so, so as of now he remains in place as Assistant Chief Minister. If he makes that offer to you, you will accept it? Is that the position?"

His answer, finally,  was a clear "yes". 

Senator Gorst confirmed that Senator Ozouf's responsibilities for "digital, innovation, competition and financial services" would now be given to someone else, and he would decide who by the end of the week. Senator Ozouf remains in the States as a Senator.

He said Senator Ozouf was acting honourably, and described the circumstances surrounding his departure as a "witch-hunt" which he hoped would stop with the publication of a series of reviews into the failure of the Innovation Fund, one of them to focus on any political actions which led to its failure. 

Senator Ozouf's defence was two-fold. Firstly that he actually only took full responsibility for the Fund in January 2016 (not much earlier as claimed by the Comptroller and Auditor General), and that other Ministers were responsible for what happened after the Fund was set up in 2013:

"My colleague the former Economic Development Minister (Senator Alan Maclean) was responsible for loans up until the end of his term of office, being advised by his Accounting Officer (Mike King)."

"I will answer for all of the actions during my time of political responsibility (for the Fund)  but it is for others, perhaps, to do likewise."

Mr King resigned from the States just days before news of the scandal broke. Yesterday the Chief Minister said he would be prepared to step down as well, if the forthcoming reviews found him to have been at fault:

"Action will be taken; and when this review, undertaken by an independent QC, concludes their report, if it says that actions need to be taken they will be taken. If that review says I should consider my position I will do so. We serve at the pleasure of this Assembly, we consider it an honour to serve the Island that we love. We put the best interests of the Island always to the fore. We don't cling on, we do what is best for Jersey. That report will say where responsibility lies, on balance, and action will be taken in light of that report. If that report points the finger at me, so be it, I will take the necessary action."

Secondly, Senator Ozouf argued that he had done all he could to resolve the problems with the Fund, but his requests for information were ignored, and the States structure for organising who was actually responsible for the Fund was "chaos" and a "nightmare:"

I did everything I could to resolve issues I found when I eventually inherited remit for #JIF & I have fully & properly discharged my duties

— Philip Ozouf (@philipozouf) January 17, 2017

"The issue that I have is that there were repeated requests by me to get facts, and to get information. I had been apparently been delegated the issue of innovation, but I didn't have the necessary requisite delegation to sign loans until the middle of 2015. I then didn't have other information, despite repeated requests and I mean repeated requests."

It was a truly momentous day in the States Assembly; and the publication of further reviews will determine if there is to be further ministerial bloodletting before the Innovation Fund scandal runs its course.