Supplementary memorandum by Councillor
Adrian Dennis, London Borough of Croydon (CAB 28(a))
AUDIT BY
AHL LIMITED OF
CONFLICTS OF
INTEREST RELATING
TO THE
COMMISSION FOR
ARCHITECTURE AND
THE BUILT
ENVIRONMENT
I write following the Audit of AHL Ltd of conflicts
of interest relating to the Commission for Architecture and the
Built Environment (CABE). This audit was instigated by the Heritage
Minister, Lord McIntosh in March 2004 and submitted to Parliament
on 17 June 2004. I believe that the Auditors' report has wide
ranging implications for the management of all Non-Departmental
Government Bodies and is therefore of some significance.
Paragraph 19.2 of the report carries a clear
implication that there is a need to ensure that the advisors to
CABE follow the ethical guidelines of their professional bodies.
That requirement is juxtaposed with the comments in the preceding
paragraph in relation to the lead partner of Herbert Smith who,
it appears, represented both CABE and Stanhope Plc., leading the
Auditors to conclude that there was potential conflict of interest,
evidenced in the correspondence dated 11 June 2003, to which the
Auditors refer.
The Auditors record that the correspondence,
to which paragraphs 19.1 and 19.2 relate, was forwarded by CABE
to the Department of Culture, Media and Sport following a letter
of complaint submitted by our Client to CABE.
It will be apparent to you from the foregoing
that we have here a matter of sufficient concern and importance
that a Government minister has commissioned Independent Auditors
to investigate and report to Parliament, with a recommendation
at paragraph 19.3 that where common advisors are used, it should
be ensured that different partners are involved and the interests
declared.
As a matter both of proper administration and
public interest in the light of the findings that have been submitted
to Parliament, I believe that it falls to your office to investigate
the conduct issue which so concerned both CABE (following the
complaint, causing them to forward the correspondence to the Department)
and also the Auditors. Accordingly, I would be grateful if you
would look into the matter and respond to me with your views.
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