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The government has appointed another independent non-executive director to the board of Andium to steady the controversy-hit social housing provider, amid an ongoing row over executive bonuses and pay – and more appointments are likely to follow.
Former IoD Chairman, Jason Laity, who was previously a Senior Partner and Chairman of KPMG Channel Islands, was recruited to the board yesterday with immediate effect.
The Jersey-educated member of the Institute of Chartered Accountants’ appointment comes after Sir Mark Boleat – the former Chair of the competition regulator and the government’s development company – was handed the reins of Andium last week, taking over from former Chief Minister Frank Walker.
It also comes after Andium lost its Vice-Chair, Heather Bestwick, following a four-year pay dispute with the Government.
Pictured: Vice-Chair Heather Bestwick announced her resignation last month.
Andium is at the centre of a major row over executive pay, which was kicked off when a resignation letter penned by its former Finance Director and Chief Operating Officer, John Hamon, was leaked to the media - just days before a deeply critical report on pay and bonuses at the social housing provider was published by the Comptroller and Auditor General.
Karen McConnell's report set out a detailed case study of how the increasing remuneration of Andium's CEO Ian Gallichan, and Mr Hamon, was handled by the board.
Their pay packets went up very significantly in fewer than five years, apparently without the explicit prior approval of the Government as sole shareholder, which was the agreed procedure.
Ms McConnell carefully laid out the series of deep disputes between Andium and the Treasury over the last four years, culminating in the Treasury demanding what they saw as excessive and unauthorised pay increases to be paid back, and bonuses to be refunded.
Pictured: Andium's Interim Chair Sir Mark Boleat, who has taken over from Frank Walker.
Amid growing tensions, a ‘Board Effectiveness Review’ was commissioned by the government at the end of 2018.
It concluded that Andium’s governing board was suffering from a skills gap, and was in need of a non-executive qualified accountant with recent or current professional financial experience.
Mr Laity’s appointment, which will initially last 12 months, could be the first of many more to the Andium board.
Interim Chair Sir Mark Boleat is now leading a recruitment process to find a permanent chair and other independent directors to “ensure good governance at the Government-owned company”.
Chief Minister, Senator John Le Fondré, said: “I am pleased that Jason Laity is joining Sir Mark on the Board of Andium. He is well-respected, with significant leadership experience at board and partner level in the financial services industry. He will also bring experience of leading reviews of risk, regulation, process improvement, and due-diligence. His expertise will help Andium to maintain its focus on bringing forward a supply of good quality, affordable homes for Islanders.”
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Andium row: Boleat brought back
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