31.10.17
MP accuses former HS2 chief executive of ‘defrauding taxpayers’
Former HS2 chief executive Simon Kirby has been accused of defrauding taxpayers after the company made £1.7m in unauthorised redundancy payments.
Kirby, now chief operating officer of Rolls-Royce, reportedly received an email from the DfT in April 2016 expressly calling on his organisation not to exceed the civil service limit of £95,000 per person in payments.
Final redundancy packages to some employees reached more than £200,000, prompting controversy within the sector, and pushing chief financial officer Steve Allen to resign last week.
Kirby’s part in the scheme was alleged during a Public Accounts Committee (PAC) hearing yesterday when Conservative MP Geoffrey Clifton-Brown quizzed Allen along with current chief executive Mark Thurston and permanent secretary Bernadette Kelly.
Clifton-Brown said the former chief executive had “made unauthorised payments that have defrauded taxpayers of £1.7m” and asked what action should be taken. In response, Kelly said she had taken no legal advice but added that there was no plan to take action because Kirby no longer worked at the company.
Committee chair Meg Hillier called the payments “absolutely shocking” and said it was inconceivable that Kirby had not forwarded the email to any other senior official.
The email in question reportedly came from the DfT’s then director-general of HS2 David Prout as a reply to a request for ‘enhanced redundancy’ packages.
In a statement, the former executive denied the allegations, adding that he was not responsible for approving the payments.
He said: “I have had no contact from either the NAO or DfT on the audit of HS2’s accounts and redundancy payments. I left HS2 in December last year and the decision to make senior managers redundant, and under what terms, was not made until after I left.
“While I do not recall whether I forwarded one specific email from David Prout to others within HS2, the issue of statutory severance was well known within HS2 and I recall regular contact between HS2 and DfT – at a number of levels – on this specific issue.”
Thurston, the current chief executive, used the committee to apologise for the company’s handling of the issues.
“We got this wrong as a company,” he explained. “We proceeded with this scheme when we should not have done.”
The packages were part of a “fundamental restructuring” of HS2, as the organisation moved its headquarters from London to Birmingham and transitioned the project from the development phase to delivery.
There have been a number of senior level staff changes within the company over the past year. Last month saw former development director Paul Griffiths take over as phase 2 managing director following the departure of Alison Munro in August.
Top image: Parliament.tv
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