Parker Exit Payment: Lack Of Consultation 'A Grave Oversight'

The lack of consultation with the Treasury before an exit payment for the former States CEO was sorted has been called 'a grave oversight'.

Charlie Parker was given a £500,000 pay-off.

The Chief Minister, as Chair of the States Employment Board, called it a 'technical breach' - but the Public Accounts Committee disagrees.

In its review of the States accounts, the committee says it may have caused or given the impression that proper financial oversight was missing.

While calling the half a million pound pay-off 'not unreasonable', it's recommended that all processes for 'special payment' should be stringently followed and documented and that consultation with the Treasury should always happen, regardless of time pressures.

It's also set out several improvements they want in place before the next CEO is appointed - they include:

• Not announcing it until a 'robust binding contract' is in place
• Introducing a specific disciplinary procedure for the job
• Agreeing that taking any other role would be incompatible with the CEO's other responsibilities

The Committee concluded that not agreeing the contract of the former CEO until after his appointment was announced left the States Employment Board in a weaker bargaining position to negotiate the final contract.

It was also agreed that the line management, and process for, entering into compromise agreements for the CEO 'is flawed' because disciplinary processes for States employees have not been designed with the unique post of Chief Executive in mind.

Mr. Parker failed to get written and formal approval to take the second role with NewRiver as his contract stipulated he should. He later apologised for that.

The chair of the States Employment Board failed to consult with other members of the board about Mr. Parker's NewRiver job, and the PAC says the SEB and Council of Ministers appeared to arrive at separate public-facing conclusions as to whether the former CEO was conflicted.

"Other findings we have made support our recommendations that future Annual Report and Accounts should separate spending made in response to COVID-19 or other non-recurrent expenditure from actual annual spend and greater clarity should be provided to distinguish ‘efficiency savings’ from the deferral of growth and other rebalancing and savings measures.

"We consider that these measures would improve the monitoring of public spending." - Deputy Inna Gardiner, Chair of the PAC.

The government is still looking to appoint a permanent Chief Executive, after recruiting Paul Martin on a temporary 12-month contract.

However, Deputy Kirsten Morel wants the recruitment process for a permanent States Chief Executive to be halted - and for the current interim to be kept in charge until after next year's election.

He says after three years of turmoil, the government and its public service are experiencing a period of calm and competence - which should not be needlessly disrupted.