Category: Gov Press Releases

Minister for the Middle East and North Africa, Alistair Burt, said:

The Asad regime’s brutal siege of Eastern Ghouta, coupled with escalating bombardment and reports of chemicals weapons use, is causing unprecedented levels of suffering. The enclave has become a crucible of misery and violence, which is simply unacceptable in the 21st century.

Airstrikes, artillery and rocket attacks by pro-regime forces are at some of the most intense levels seen in the besieged area in years, leading to scores of civilian casualties. Over 700 people need medical evacuation, but the regime continues to refuse to allow this.

We call on the regime and its backers to cease this campaign of violence, to protect civilians and allow rapid and unhindered humanitarian access. As the international community has made clear to the Asad regime and its backers: the world is watching.

Further information

• Follow the Minister for the Middle East and North Africa on Twitter @AlistairBurtUK
• Follow the Foreign Office on Twitter @foreignoffice and Facebook
• Follow the Foreign Office on Instagram, YouTube and LinkedIn

Around £1 million of funds have been made available for charity as a result of the Charity Commission’s engagement with a grant-making charity.

In an inquiry report published today, the regulator outlines how governance failings resulted in unauthorised payments totalling approximately £650,000 to three trustees who were acting as consultants for the charity’s wholly owned subsidiary limited company.

The Commission opened its inquiry in February 2017 after newly appointed solicitors sought the current and former trustees’ relief from liability for the unauthorised payments, as well as permission to sell 99% of its shares in the subsidiary limited company.

The inquiry looked into the administration, governance and management of the charity, specifically regarding decision making and conflicts of interest; whether the proposed sale was in the best interests of the charity; whether there had been any private benefit to the current and former trustees; and whether restitution of funds was necessary.

The inquiry found that the consultants were conflicted as they had been trustees of the charity at the time of the payments, and had failed to identify or adequately manage this conflict of interest. The trustees were also unable to demonstrate that adequate records of their decisions had been maintained.

The inquiry considered the payments amounted to significant private advantage and financial benefit, as well as a direct breach of the charity’s governing document and the trustees’ legal duties. The trustees were also in violation of company law which requires them, as directors, to ensure records of their decisions are retained for at least 10years.

Although the inquiry recognised that the trustees had made “honest mistakes”, there was a strict prohibition against private benefit in the governing document. The Commission therefore engaged further and the trustees agreed to seek recovery of the £650,000 and adopt a formal conflicts of interest policy.

After reviewing the charity’s records the Commission was satisfied that the trustees had correctly managed conflicts of interest around the sale of the shares; the conflicted trustees had been removed from decision making and a new independent trustee appointed. The trustees had also sought independent professional advice and negotiated better terms to ensure that the sale was in the charity’s best interest.

The Commission therefore granted consent under s105 and s201 of the Charities Act to authorise the transaction, resulting in a further £350,000 going to the charity.

The inquiry remained open to ensure that the repayment took place, and was closed on 20 February with the publication of this report.

Harvey Grenville, Head of Investigations and Enforcement at the Charity Commission said:

Actively managing conflicts of interest is a fundamental principle of trustee decision making. We recognise that trustees are human beings who may make honest mistakes, but the bottom line is that you must always act in the best interests of your charity.

Our intervention has allowed this charity to claw back a significant amount of money that can now go to charitable causes. I hope this will encourage other charities to be mindful of their duties and consult our guidance when making important decisions.

The Commission’s full report of its inquiry is available on GOV.UK.

Notes to editors:

1. The Commission’s policy is to report on the outcome of statutory inquiries unless the public interest in not publishing would outweigh the public interest in publishing. The Commission carefully considered submissions from this charity which said that its identification in the inquiry report would be severely detrimental to the charity and its beneficiaries. However the Commission concluded that our findings should be published anonymously so that lessons could be learnt by other charities.
2. The Charity Commission is the independent regulator of charities in England and Wales. To find out more about our work, see the about us page on GOV.UK.
3. Search for charities on our check charity tool.

The Charity Commission for England and Wales and the Office of the Scottish Charity Regulator, who together are the SORP-making body, are inviting comments on amendments to the Charities Statement of Recommended Practice (SORP) following changes in UK-Irish accounting standards.

The consultation launched today will run for 6 weeks and focuses on 21 proposed amendments to the SORP which are considered necessary as a result of the changes made in December 2017 to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland. These changes are to be made via a second Update Bulletin and include:

• the introduction of an accounting policy choice for entities that rent investment property to another group entity
• the clarification of the accounting treatment for payments by subsidiaries to their charitable parents that qualify for gift aid
• the clarification of the requirement for comparatives for disclosures required by the SORP
• the introduction of a requirement for a net debt reconciliation to be prepared as a note to the statement of cash flows

The consultation is inviting comments on the draft Update Bulletin with 2 questions:

1. Do you agreed with how the amendments to FRS 102 have been reflected in the proposed amendments to the Charities SORP (FRS 102) in draft Update Bulletin 2? If not, which of the proposed changes do you not agree with, and why?
2. Are there any other amendments to the Charities SORP (FRS 102) that you consider to be necessary based on the recent amendments to FRS 102? If so, please state the amendment to FRS 102 and the relevant SORP paragraph(s)

Nigel Davies, Head of Accountancy Services at the Charity Commission for England and Wales and Joint Chair of the SORP Committee said:

One of the principal roles of the SORP is to provide charity specific guidance on applying UK-Irish accounting standards when preparing a charity’s accounts, and so it’s important that any changes made to an accounting standard are reflected accurately and clearly in the SORP.

Laura Anderson, Scottish Charity Regulator and Joint Chair of the SORP Committee, said:

This is an important opportunity to help ensure that the Charities SORP continues to provide helpful guidance on charity accounting and reporting and we encourage those that prepare charity accounts to share their views on how the changes to the reporting standard are being applied to the SORP for charities. We would also like to hear views from users of charity accounts on the changes made and the impact on how useful charity reports and accounts are.

The consultation will close on Wednesday 4 April 2018. For more information, including the draft SORP Update Bulletin, and detail on how to respond refer to the dedicated SORP site. Details of consultation events are also available on the site. The changes will come into effect for accounting periods beginning on or after 1 January 2019.

The consultation is not seeking views on the amendments to the underlying accounting standard as this is led by the Financial Reporting Council and the amendments have been finalised.

Ends

Notes to editors

1. All charitable companies and charities that are not companies with gross annual incomes of £250,000 or more must prepare accruals accounts that are compliant with the Statement of Recommended Practice.

Indonesia has become the first country in the world to have a UK Export Finance (UKEF) Country Head to be based in-country. Richard Michael has been appointed to the newly-created post in Jakarta, leading UKEF’s efforts to grow the UK-Indonesia trading relationship.

UKEF is the UK Government’s Export Credit Agency, helping buyers around the world to trade with UK suppliers by offering attractive financing options. Through this local presence in Jakarta, UKEF will be better placed to deliver competitive and innovative finance to Indonesian companies and public bodies doing business with the UK.

British Ambassador to Indonesia Moazzam Malik said:

The choice of Indonesia as UKEF’s first overseas presence demonstrates the importance the UK attaches to the further development of Indonesia as a key trading and investment partner. There are significant opportunities for the two countries to cooperate in the key priority sectors as identified by the current administration, such as infrastructure, and where the UK can add a lot of value.

Richard Michael, the new country head for UKEF in Indonesia said:

In addition to its market-leading product range, UKEF is one of the few export credit agencies able to provide finance in local currencies, including the Rupiah. UKEF is very much open for business in Indonesia, with billions of dollars in capacity now available for the country.

Mr Michael will be based in the British Embassy in Jakarta, working closely with the teams involved in promoting the UK-Indonesia business relationship.

Notes to Editors:

• UKEF is the UK’s export credit agency, helping overseas buyers of UK goods and services:
  • Procure from UK suppliers that offer quality and innovation by providing attractive financing terms
  • Borrow at competitive interest rates from banks with the benefit of a strong guarantee backed by the UK Government
  • Borrow directly from the UK Government itself at competitive, fixed interest rates
  • Maintain flexibility, with finance that can also be used to buy local supplies or supplies from other countries, alongside UK supplies
    Full details of its products and services are available on its website.
• It works with UK exporters and their overseas buyers to offer attractive financing options, including:
  • repayment terms of 2-10 years – and up to 18 in some sectors, such as renewable energy;
  • flexible UK content requirements for projects supported;
  • capital markets refinancing;
  • sharia-compliant structures;
  • 40+ local currency options – including Chinese Yuan, Hong Kong Dollars, Indian Rupee, Indonesian Rupiah, Malaysian Ringgit, Singapore Dollars and Thai Baht.
• Established in 1919, UKEF is the world’s oldest export credit agency.
• Richard has lived and worked in Asia/Pacific for almost 30 years, of which about half that time has been spent in Indonesia. His most recent position before joining UKEF in December 2017 was Head of Private Client Advisory at Indonesia Infrastructure Finance. Richard is a graduate in History & Modern Languages from Magdalen College, Oxford and has a Master of Business Administration degree from Leicester University (Richard.michael@fco.gov.uk)

A No 10 spokesperson said:

The Prime Minister spoke to Taoiseach Leo Varadkar on the phone earlier this evening.

They spoke about the recent phase of political talks in Northern Ireland and of their disappointment that an agreement had not yet been reached to restore an Executive.

Both leaders recognised the progress and serious engagement made by the parties.

The Prime Minister said she believed there was scope for agreement and reiterated the UK Government’s priority was still to get devolution up and running again in Northern Ireland.

They agreed to continue to stay in close contact as the parties reflect on the best way forward to re-establish devolved Government in Northern Ireland.

Foreign Secretary Boris Johnson said:

I am deeply concerned by the findings of the UN Panel of Experts on Yemen that missiles and related military equipment of Iranian origin were introduced into Yemen after the imposition of the targeted arms embargo.

This puts Iran in non-compliance with Security Council Resolution 2216 (2015) and reaffirms our concerns that they are undertaking destabilising activity in Yemen and the wider region.

I call on Iran to cease activity which risks escalating the conflict and to support a political solution to the conflict in Yemen. I also call on all parties to the conflict to abide fully by applicable international law, including international humanitarian law and international human rights law.

Read the full UN Panel of Experts report on Yemen

Further information

• Follow the Foreign Secretary on Twitter @BorisJohnson and Facebook
• Follow the Foreign Office on Twitter @foreignoffice and Facebook
• Follow the Foreign Office on Instagram, YouTube and LinkedIn

The increase follows a previous Competition and Markets Authority (CMA) campaign targeting this illegal behaviour.

The CMA is now launching a new campaign to encourage more people to come forward with information that will help it hunt out illegal cartels. The campaign is part of a ramping up of the CMA’s enforcement activity and comes after the award of an extra £2.8m from the government for this work.

Cartels are businesses which cheat their customers by agreeing not to compete with each other so that they can keep their prices high. There are serious penalties for being in a cartel, but many workers in the UK know little about them, putting them and their companies at risk.

The new campaign encourages people to be “Safe, not Sorry” if they think they may have involved themselves in cartel activity and to make sure they are the first to report it to the CMA. Witnesses – those not involved themselves but who have seen something untoward – are also asked to “Do the Right Thing” by reporting it to the CMA.

The CMA saw a 30% increase in tip offs in 2017, following the launch of the CMA’s first digital campaign.

As part of the new campaign, the CMA is reminding people that, if they come forward with information about their involvement, they can receive significant reductions in fines and avoid being disqualified from running a company. If they are the first to come forward, they can receive total immunity, including from criminal prosecution. Witnesses who blow the whistle can receive a reward of up to £100,000.

Stephen Blake, Senior Director for Cartels at the CMA, said:

We are committed to tackling cartels wherever we find them. More people are reporting illegal activity to us and we urge anyone with information to come forward. If you’re involved, it’s better to be safe, not sorry and to tell us about it first – before someone else does.

For those who were not involved but have witnessed illegal activity, we urge them to do the right thing. We know that this is a sensitive issue and some people could worry about what might happen to them if they speak to us. All information is treated confidentially and we can discuss any concerns that people may have over keeping their identity secret.

Francesca West, Chief Executive at whistleblowing charity Public Concern at Work, which is backing the “Safe, not Sorry” campaign, said:

We know from our experience that speaking up isn’t easy, but it is often the only way to prevent further harm. It is encouraging the CMA has seen a 30% rise in people coming forward to report the illegal behaviour of cartels.

Over the past two years, the CMA has issued £151m in fines following successful investigations into anti-competitive practices and it is currently investigating 15 cases where competition law may have been broken.

The new campaign will target a range of industries that are at a greater risk of cartels forming. These sectors include: construction, manufacturing and business support services. These are sectors that have either a history of reported cartel activity or characteristics that make them vulnerable to cartels.

Recent cases where the CMA has taken enforcement action include:

• Water tank firms fined over £2.6 million, after they formed a cartel to divide up customers and fix minimum prices for tanks used in large construction projects (such as, schools and hospitals).

•Somerset estate agents fined over £370,000 for fixing the minimum prices of their commission rates, meaning that local home owners were denied a fair deal when selling their property.

•Amazon marketplace seller fined over £160,000 and director disqualified from running a company after agreeing to fix the prices of popular posters and frames with a competitor. The competitor contacted the CMA to report the cartel activity and received immunity.

If you have witnessed a cartel or have been involved in a cartel and wish to apply for leniency, call: 0203 738 6888 (witnessed); 0203 738 6833 (leniency). For more information, visit the Stop Cartels webpage or view the CMA’s video guidance.

Notes to Editor

1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law. For CMA updates, follow us on Twitter @CMAgovuk, LinkedIn, Facebook, Youtube and Flickr.
2. Businesses found to have been involved in illegal cartels can be fined up to 10% of their annual turnover. Individuals can face up to 5 years in prison and directors can be disqualified from holding director positions for up to 15 years. These can be reduced or eliminated altogether where a business or individual reports their involvement in a cartel and co-operates fully with the CMA’s investigation.
3. The campaign encourages people to visit the CMA’s designated ‘Stop Cartels’ page which features videos, short guides and case studies to explain what cartels are and how people can report them. The campaign page can be found at: www.gov.uk/stopcartels
4. Public Concern at Work is a dedicated whistleblowing charity that offers independent and confidential advice to workers who are unsure whether or how to raise a public interest concern. It operates an advice line managed by qualified lawyers with a wealth of experience in whistleblowing law and practice. To contact Public Concern at Work, call 020 7404 6609.
5. Enquiries should be directed to the CMA press team at press@cma.gsi.gov.uk or 020 3738 6191.