Wirral Council invests £38 million in company mired in allegations of bribery of foreign politicians and civil servants

Wirral Council invests £38 million in company mired in allegations of bribery of foreign politicians and civil servants

                                                                    

Pensions Committee (Merseyside Pension Fund) 16th November 2015 L to R Peter Wallach, Cllr Paul Doughty (Chair)
Pensions Committee (Merseyside Pension Fund) 16th November 2015 L to R Peter Wallach, Cllr Paul Doughty (Chair)

Towards the end of the BBC ten o’clock news yesterday evening after the stories about Syria, climate change and the doctors’ strike being called off there was a piece about British American Tobacco.

For those who don’t know Wirral Council (who manage the Merseyside Pension Fund) had (valued at March 2015) £38 million invested in shares in British American Tobacco. In fact it is their largest shareholding (see page 15 here). I will declare an interest as a close relative of mine is paid a pension by the Merseyside Pension Fund.

As the BBC only keep clips of the news available on BBC Iplayer for 24 hours, I felt it would be useful to have a transcript of the piece so that it reached a wider audience.

Huw Edwards: A BBC investigation has uncovered evidence of corruption and bribery at the UK’s fifth biggest company. BBC Panorama found British American Tobacco paid bribes to politicians and civil servants in countries across East Africa.

The illegal payments even undermined a United Nations initiative designed to save lives! The company could face prosecution around the world for failing to prevent bribery. BAT says it does not tolerate corruption.

Our special correspondent Richard Bilton reports.

Richard Bilton: This is northern Uganda, it’s tobacco country. Thousands of farmers work these hills, but there is another way to make money from this crop. We’re on our way to meet a very important man. This is a guy who helps to decide who gets to buy and sell tobacco and what we know about the man we’re on our way to meet is he’s corrupt.

This is Doctor Kasirivu Atwooki and we’ve seen documents that show he was paid $20,000 by BAT to change a parliamentary report. He doesn’t know, I know he’s corrupt.

If an MP, a sitting MP took a bribe, how would you feel about that?

Dr Kasirivu Atwooki: Well, that’s not acceptable.

Richard Bilton: You took a bribe though, didn’t you?

Dr Kasirivu Atwooki: Why should I?

Richard Bilton: You took $20,000 from BAT!

Dr Kasirivu Atwooki: From when?

Richard Bilton: In 2012.

Dr Kasirivu Atwooki: No, no, no, that’s not true!

Richard Bilton: Are you corrupt?

Dr Kasirivu Atwooki: I’m not!

Richard Bilton: The evidence suggests he is and we know because of this man. Paul Hopkins was in the Irish Special Forces before he joined BAT. He says he was told bribery was the cost of doing business in Africa.

Paul Hopkins: I was a commercial hit man. My job was to ensure that the competition never got a breathing space.

Richard Bilton: So BAT, they knew what they wanted you to do and they expected you to get on with it?

Paul Hopkins: Yes.

Richard Bilton: And that included bribing?

Paul Hopkins: Yes.

Richard Bilton: Breaking the law?

Paul Hopkins: Yes.

Richard Bilton: Applying pressure?

Paul Hopkins: Yes.

Richard Bilton: Undermining commercial rivals?

Paul Hopkins: Yes.

Richard Bilton: And you were happy to do that?

Paul Hopkins: Yes.

Richard Bilton: BAT sold 667 billion cigarettes last year and made £4.5 billion profit, but the documents Paul has supplied show employees paid bribes to change anti-tobacco legislation, damage rivals, even undermine the UN effort to save lives.

Bribes were paid to three officials connected to a World Health Organisation supported campaign which aimed to reduce tobacco related deaths. I showed our evidence to the woman who runs the campaign.

Richard Bilton: That’s BAT paying a representative $3,000. What do you feel about that?

Dr Vera Luiza Da Costa E Silva (WHO): It’s a company that is err irresponsible to say the least. It’s using bribery to profit at the cost of people’s lives, simple as that.

Richard Bilton: BAT failed to answer any of our questions directly. Mr Durante? So I caught up with Chief Executive Nicandro Durante as he arrived at work. Sir, can I ask you a quick question? I’m from Panorama, why did you not respond to our emails about bribery? Is that the nature of BAT Sir, that you just put up with bribery?

Richard Bilton: BAT has since told us, the truth is that we do not and will not tolerate corruption no matter where it takes place. Our accusers in this programme left us in acrimonious circumstances and have a vendetta against us. The whistleblower is due to meet investigators from the UK’s Serious Fraud Office this week to discuss the bribery secrets of one of the UK’s biggest companies. Richard Bilton, BBC News.

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In response to a FOI request Wirral Council pulls a rabbit out of a hat and the invoice mysteriously disappears!

In response to a FOI request Wirral Council pulls a rabbit out of a hat and the invoice mysteriously disappears!

                                                                 

John Booth with white rabbit
John Booth with white rabbit

Above is a picture of a magician with the famous white rabbit out of a magician’s hat trick. First the hat is empty, then the magician makes the white rabbit appear out of nowhere.

Wirral Council seem to be wanting to pull a similar magic trick when it comes to this FOI request. Let’s just recap what Wirral Council have stated so far.

On the 21st April 2015 Wirral Council refused this FOI request for the fees notes (note plural) on the basis of legal professional privilege (you can read the full text of that refusal here).

On the 11th June 2015 Wirral Council at internal review refused this FOI request for the fees notes (note plural) on the basis of commercial interests (you can read the full text of that refusal here). At internal review Wirral Council stated "The original responder considered the contents of the fees notes".

On the 27th October the Information Commissioner’s Office issued decision notice FS50585536 which required Wirral Council to produce the fees notes within 35 days.

On the 24th November Wirral Council produced one of the two which you can read about in Why did Wirral Council spend £48,384 on a London-based barrister in benefits battle with landlord?

However yesterday Wirral Council decided to show us all a magic trick.

The fee note for the £2,700 invoice, which they have been claiming for the past nearly nine months has been carefully considered by its officers when refusing this request (twice) has conveniently and somewhat mysteriously vanished.

Yes like the reverse trick of the white rabbit appearing out of nowhere and just when it would be contempt of court not to produce it, it vanishes!

Of course the observant among you will have long witnessed the "magic and miracles" that goes on at Wirral Council by its employees.

ED: 1/12/15 9:49 Just for clarity, here is the invoice this refers to which quite clearly states "See fee note attached for description of work".

I will finish with this clip of Sir Humphrey Appleby from Yes, Prime Minister. Wirral Council’s responses to FOI requests will be discussed by councillors on Thursday evening, in response to this Lib Dem motion.

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