UK Lord is focus of probe

| 04/10/2012

lord tory toff.jpg(CNS): The director of the Cayman Islands London Office, Lord Blencathra, is the subject of an enquiry by a House of Lords committee in the UK as a result of his job with the Cayman Islands government. Although the British peer released documents in May of this year that suggested there was no probe into his appointment by the Cayman government, the office of the House of Lords Commissioner for Standards confirmed Thursday that an enquiry was underway after a complaint was filed in July. A spokesperson told CNS that the office was unable to comment as the process was on-going but a report would be delivered to the relevant committees in due course.

In May of this year, as reported on CNS, Lord Blencathra had contacted the UK Commission for Standards in Public Life for the House of Lords, supplying various documents, which he said at the time demonstrated there was no conflict of interest in him taking the job as head of Cayman’s London office. The Standards Commissioner, Paul Kernaghan, wrote back to the peer confirming that no complaint had been made and there was nothing for him to investigate.

With the confirmation that this is no longer the case and that an enquiry is now underway, local independent MLA Ezzard Miller called for the Tory peer to resign or be removed.

“This enquiry should prevent Lord Blencathra from being employed by the Cayman Islands but, given the principles displayed by this current government, it is no surprise that being under investigation presents no barrier to advancement,” the North Side representative added.

Lord Blencathra and his consultancy firm are, according to records released under the local FOI law, paid $23,000pcm to represent the Cayman Islands' interests in the UK and in Europe.

However, issues had been raised in the UK press about the potential conflict the Tory Lord faces by being paid to lobby for the Cayman Islands while retaining a seat in the House of Lords as a Conservative member. The appointment of the former Scottish MP was questioned by Labour MP Paul Flynn, and Tim Farron, the president of the Liberal Democrats, the party which is the junior partner in the current coalition government in the UK, also questioned the peer’s activities in a statement to the UK media.

Farron pointed to the controversy in the UK surrounding lobbying and tax and suggested it was “astonishing that a Tory peer is now the lead advocate in Britain for one of the world’s biggest tax havens.” He added that if the peer was using what he described as a very privileged position to “lobby for a government that wants to see money that should be for our schools, hospitals and our armed forces sailing off in luxury yachts to be stored on the Cayman Islands”, it was a “mockery” of the system.

It is understood that a complaint has now been formally filed by at least one UK Member of Parliament about the appointment, which had also raised concerns at the Foreign Office. 

In a report on Tuesday the Bureau of Investigative Journalism in the UK revealed that papers released from the Foreign Office confirm CNS reports that the FCO had raised its concerns about the appointment, which it said previously it was not involved with.

Correspondence released to the bureau under the UK Freedom of Information law shows that when Henry Bellingham was the Overseas Territories minister he had approved Lord Blencathra taking the job, despite the potential for conflicts of interest.

Notes from an FCO meeting state that the department was “considering the implications of a member of the House of Lords being appointed on contract to an Overseas Territories government to represent its interests.” 

The FCO was also worried that there was a question of party allegiance. “The FCO had taken the view in the past that Ministers could not include MPs of their own party with no role in government in governmental meetings,” the FCO officials had noted.

At the meeting, Lord Blencathra had reportedly told the FCO that he wanted to avoid the perception of conflict and that he “had no interest in advancing his party’s politics through this job.”

Sources have also told CNS that the FCO had queried the appointment but it was made by the Cayman Premier McKeeva Bush before the UK officials had examined if indeed a conflict did exist. Bush has also since publicly complained about the governor, Duncan Taylor, attempting to stop the appointment.

During a tirade by the premier about the governor in May, in which Bush accused the UK’s representative in Cayman of “stealthily and insidiously” undermining what Bush said he was trying to do, he accused the governor of not supporting the move to take on the Tory peer.

“We have suffered unemployment. Has he tried to help us? What has he done? He has done nothing of substance to help these islands,” Bush said in a damning statement. “He opposed Dr Shetty’s hospital project and I had to tell him 'you don't like this but you have no vote in Cabinet.' He didn't support me hiring Lord Blencathra. This is just a bit of what I've had to put up with; that’s the way he has performed.”

Related articles:

No complaints about UK Lord

UK Lord costs £14k+pcm

See UK Bureau of Investigation story here.

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  1. Dreadlock Holmes says:

    It seems to me the main occupation of quite a number of MP's, MLA's, Lords, etc. is to find as many "conflicts of interest to get involved in" while they have the opportunity but every so often they need to pick one and pretend to be aghast at that behavior.

  2. Anonymous says:

    The red bathrobe is nice, though.

  3. Anonymous says:

    Birds of a feather my friends.., birds of a feather.

  4. Anonymous says:

    Guys get real. The is one of the few things Mac did correct. Always get an insider to represent you. As good as Jennifer Dilbert is she was an outsider and most importantly she was not part of the “Old boy network” – and trust me, that is how things in the UK works. I’m not surprised the fellow UK members realise what a stealth move that was by the Cayman Islands. We cannot sit here and let the UK simply put us out of a livelihood without a serious attempt to set the record straight.

    London and New York are listed as the two top money laundering places in the world. They do not even have the KYC regulations we have. But you never hear about those two in the news. One smart thing Mac did.

    • Anonymous says:

      06:40, Go back to work Foolio.

    • SKEPTICAL says:

      And what has “milord” done so far to justify his $14000+ PER MONTH FEES. Yet again, bush got sucker-punched by a snake oil salesman, who probably promised that he would be able to do all sorts of things to promote Cayman, and/or defend them against the nasty FCO. Anybody thinking about using Cayman as a financial centre, can get most of the information they need on line – and it would be interesting to give Blencatheter a written test on his knowledge and understanding of the Laws and Regulations applicable to our Financial Services Industry.

  5. Anonymous says:

    If you hang out with guys like McKeeva, then the "stuff" sticks.

  6. Anonymous says:

    Chosen by Mac.  Doesn't that say it all?

  7. Will Ya Listen! says:

    "Farron pointed to the controversy in the UK surrounding lobbying and tax and suggested it was “astonishing that a Tory peer is now the lead advocate in Britain for one of the world’s biggest tax havens"

    The Guardian newspaper had a headline only a few weeks ago:

    "Tory treasurer wants UK to become more like a tax haven  Lord Fink calls for tax law changes as Guardian reveals 68 MPsand peers are directors of firms linked to offshore jurisdictionsTory treasurer wants UK to become more like a tax haven"

    Talk about that Farron and set your own house in order first.

     

     

  8. Chewbacca says:

    And given he was the man who objected to Freedom of Information and who had fiddled expenses, he was such a great choice for the job.

  9. Anonymous says:

    Received $23k per month, for doing what, who pays him the CI government, what checks do they carry out the ensure he's fulfilling his duties?  Can't anyone put on a women's robe, a silly wig, talk nonsense and demand that kind of salary?

  10. Anonymous says:

    We civil servants said from the start this is a totally ridiculous appointment and is in breach of the PSML as it is supposed to be a civil service post. But then Mac doesn't pay attention to that sort of legal requirement and appoints and fires who he wishes. It has to stop, folks. But, I agree, it won't.

  11. Anonymous says:

    "We have suffered unemployment…"

     

    Caymanian unemployment is caused, to a large degree, by the indenturded slavery law (aka Immigration Law) that was enacted by the Cayman ruling class to benefit the Cayman ruling class. The Cayman ruling class was voted into the LA by Caymanians.

     

    The governor had no part in this insidious legislation.

    • Anonymous says:

      1659, "indenturded?" Freudian slip?

    • Anonymous says:

      Were it not for the work permit system Caymanian unemployment would be even higher. The problem is that it is not policed effectively.

      • Anonymous says:

        "…policed effectively…"?????

         

        The ruling class will never allow that to happen.

  12. Anonymous nah says:

    Anybody smell doodoo?…………..omg it hit the fan!

     

     

  13. Anonymous says:

    And Mac's foresight reigns……..sh*t……not again.

    This is probably exactly what the Governor was trying to explain to Dumbo  and the rest of the circus.

    Fire, Ready, Aim.

  14. Anonymous says:

    If Lord Blenny has to step down then Big Mac will have to go back to his original first choice, Ronnie Biggs.

  15. Anonymous says:

    $14,000 or £14,000?

  16. Anonymous says:

    So the UK Member that complain feels that allowing business to go the cayman islands adversely impacts the UK's interest.

    Thats an eye opener.