Innovation Fund: two out of three reviews to be kept secret

Wednesday 15 February 2017

An inquiry into the actions of the civil servants who ran the ill-fated Jersey Innovation Fund is to be kept secret, the Chief Minister has revealed.

Speaking in the States yesterday, Senator Ian Gorst said that since the inquiry would deal with the actions of individuals, and could lead to disciplinary proceedings, then it probably wouldn't be published.

He also implied that his former Assistant Minister Senator Philip Ozouf had resigned after a "kangaroo court" and a "witch hunt" and declined to ask other Ministers who had responsibility for the Fund to resign, until a review into their conduct had been completed. 

Last month the States spending watchdog, the Comptroller and Auditor General (CAG) Karen McConnell published a damning report into the operation of the Fund, and set out potential losses of up to £1.4million of taxpayers' money, which is currently outstanding in terms of overdue loan repayments. Some of that money may be repaid. 

The original accounting officer for the Fund, Mike King, resigned just days before the report was published, and Senator Philip Ozouf, who was politically responsible for the Fund from at least January 2016, also resigned as an Assistant Minister. 

The Chief Minister has previously announced three reviews into different parts of what had taken place. The first, conducted by a team of accountants, will look at the actual loans themselves, and he said this probably won't be published due to "commercial sensitivities" - a final decision on whether to publish it will be taken once the review has been produced. 

A second review into the actions of civil servants won't be published, because it will contain references to individuals and potential disciplinary actions. It is being conducted by a former employment lawyer from the UK and will cost up to £25,000. Senator Gorst said:

But a third review into the actions of the politicians will be conducted by Jessica Simor QC, and is due to be finished within the next two months -  this one will be published. 

Senator Ian Gorst commented: 

"The review looking into the political responsibility will be published...and if the review's finding is that further action is necessary I will consider it at that time. There is one (review) being undertaken by external accountants, that may...or may not, be appropriate to be published, depending on commercial sensitivities...The review into actions by staff, it's most unlikely that will be published as it will involve individual staff, and whether there is disciplinary processes to be followed. 

"But the political review, I've given the undertaking, as I did from day one, that it is appropriate that that is published and put into the public domain."

The Chief Minister also declined to ask other Ministers who had responsibility for Innovation Fund loans to resign:

"These are issues that need to be appropriately considered so that I, and other members, can make appropriate decisions, once those reports have been published and that is the appropriate way sir, rather than any suggestion of a kangaroo court or a witch hunt, which some feel was delivered against the former Assistant Minister (Senator Ozouf) inappropriately, but he chose that honourable path."

Yesterday the Attorney General announced that the Police were to investigate the loans that were given after the CAG referred the issue to him, flagging up concerns over the actions of 'third parties."

There's is also to be yet another review of the Fund (the fifth in total), this time undertaken by the Public Accounts Committee.