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The exact terms of Government CEO Charlie Parker’s departure, his second contract, and the topic of ‘golden handshakes’ are set to be probed in official reviews over the coming months.
The Public Accounts Committee will be focusing on any financial agreement made relating to Mr Parker’s exit as part of its upcoming review of the States Annual Report and Accounts 2020, which are yet to be released.
Meanwhile, Comptroller and Auditor General Lynn Pamment - the Government’s spending watchdog - has decided to follow up on previous reviews into the States Employment Board (SEB) and the use of compromise agreements, which are known colloquially as ‘golden handshakes.'
The probes in response to Mr Parker’s exit were confirmed on Friday by PAC Chair Deputy Inna Gardiner. She said PAC - which is responsible for scrutinising public sector spending - had not been made aware that Mr Parker was to sign a second contract, as revealed by Express last week.
Pictured: The Government has given Mr Parker a short term contract covering 8 January to 31 March 2021.
Mr Parker’s departure from the top civil service job was announced in November after the SEB ruled his second job as a Non-Executive Director at UK real estate firm New River was “not compatible” with his Chief Executive role.
After agreeing to step down, it was decided that Mr Parker should stay on until 31 March until a handover process with the new interim CEO was complete.
He then signed a second, fixed-term contract on 23 December to cover the three months up to that date. SEB did not confirm the reason why a second contract was necessary when asked by Express, but simply said the new agreement was “put in place following advice” they had received. They did not clarify what that advice was. Under his original contract, Mr Parker should have had a six-month notice period.
The Government has previously declined to clarify whether Mr Parker has received or will receive any payment in relation to the end of his employment in response to previous questions from Express. This is expected to be revealed in the States of Jersey Annual Report and Accounts 2020.
In November, Deputy Gardiner wrote to the Chief Minister - who is Chair of the SEB - to remind him that PAC would soon be reviewing the Government’s accounts and that it would be analysing whether expenditure met the standards of propriety, regularity, value for money and feasibility.
She said that PAC would apply this analysis to any agreement reached with Mr Parker, adding that the panel was “mindful that… there is no corresponding independent oversight of the arrangements for termination of employment, despite their often contentious nature, other than through the courts.”
“[PAC] therefore urges you, as Chair of SEB, to be transparent, open and clear regarding the terms of the end of Mr Parker’s contract,” the letter read.
Now Deputy Gardiner says PAC wants to get to the bottom of Mr Parker’s second contract too.
“For me, it’s a huge concern. I have questions about how… when he had a permanent contract, why he needed a brand new contract, and how it can represent value for money,” she told Express.
She added that she wanted to understand why the six-month notice period had not been followed.
“There may be valid reasons for this, but I think that they need to communicate it to the public and I urge the Chief Minister to communicate it to the public.”
The topic of ‘golden handshakes’ came to prominence in 2012 after a report by the previous Comptroller and Auditor General (C&AG) showed that former CEO Bill Ogley received £546,337, and that Health Chief Mike Pollard received a £129,000 pay-out in 2009 after resigning “for personal reasons."
In all, the 2012 report showed that 11 civil servants were paid a total of £1.5 million over five years.
A follow-up report conducted in 2016 concluded that the Government still had “not learned lessons and put in place rules to ensure the “incidence and value of payments is justified”.
One of its recommendations was that “reports to and minutes of the States Employment Board include a clear rationale for exit terms proposed and agreed.” In their November 2020 letter, PAC urged the Chief Minister to follow this recommendation for any agreement in relation to Mr Parker’s departure.
In December, Express requested a copy of SEB meeting minutes under the Freedom of Information Law, but was denied them as they had not yet been approved for release.
A report on the SEB penned by the C&AG in 2019 suggested that there should be independent oversight of the termination of employment.
“The [Jersey Appointments Commission] provides independent oversight of appointments. However, securing fairness and demonstrating compliance with relevant Employment Codes of Practice, policies and guidance is as important, if not more important, in the case of termination of employment,” it read.
The C&AG will be revisiting both of these areas this year.
Express successfully applied for both Mr Parker's original contract and second contract to be made public under the Freedom of Information Law. You can see the original HERE and the second contract HERE.
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