Civil servants sanctioned but not politicians for States' purchase card misuse

Friday 04 August 2017

More details have emerged about the way Jersey's senior politicians are expected to use their official purchase cards.

Earlier this year Express revealed that the former Assistant Chief Minister, Senator Philip Ozouf, had used his card to pay for more than £11,000 of 'personal' expenses including books, clothes, medical expenses and an iPad. He claimed to have had legitimate reasons for putting the items on his States' card.

Senator Ozouf repaid the money after he was finally issued with an invoice by the States for up to £11,455, four months after he was first asked to repay the money, following an internal review. 

Although States officers are expected to comply with strict rules preventing personal expenses being charged to their States cards, it emerged that Ministers were not, although their were expected to follow 'best practice,' and comply with the more general Ministerial code of conduct. 

According to the government regulations (clause 2.2.1.3) for the use of a States purchase card, “…misuse of the card will result in the card holder facing disciplinary action, e.g. cardholders must not under any circumstances use their purchase card to fund personal expenditure.” 

Now a fresh response under the Freedom of Information law has clarified that there are no set maximum limits for how much a Minister can spend on their States' card, it is up to each department to set rules, as they see fit. 

The new information also casts further light on Senator Ozouf's spending, saying: “...under normal circumstances the costs of replacement or repair of personal possessions damaged or lost whilst on States business abroad would not be covered. However, under exceptional circumstances, e.g. loss of baggage, this could be covered by the States of Jersey insurance arrangements. If a States Member claimed outside of the insurance arrangements for any of these costs it would be the decision of the budget holder or accounting officer whether to approve the claim.”

Equally, on the issue of whether States members are entitled to have their medical expenses covered whilst on States business – abroad or otherwise, the answer is: “emergency medical expenses would be covered by the States of Jersey insurance arrangements. Costs recoverable under a reciprocal health agreement are excluded. If a States Member claimed outside of the insurance arrangements for any of these costs it would be the decision of the budget holder or accounting officer whether to approve the claim.”

In terms of sanctions which can be brought for misuse of a card, it appears that civil servants are under tighter scrutiny than their political masters. No States Member has ever been reprimanded, whereas “...there have been incidences of employees deliberately misappropriating funds through their purchase card. The employees were dismissed, following disciplinary hearings and the funds recovered as a civil debt. In addition to disciplinary action a small number of cardholders have had their purchase cards withdrawn for not complying with departmental purchase card rules (e.g. failing to obtain or retain itemised receipts, over-use of the card).” 

Express was unable to reach Senator Ozouf for a response.