Subject: Corporate Credit Card Expenses and GLA’s Expenses Process and Systems
Report Number: 12
Report to: Date: Report of: 1.
1.1
Business Management and Administration Committee 24 June 2009 Executive Director of Secretariat
Recommendation
That the Committee notes this report as background to questioning the Deputy Mayor for Government Relations on his corporate credit card expenses, and questioning the Mayor’s Chief of Staff and the Executive Director for Resources on the Greater London Authority’s expenses processes and systems, and notes the answers to questions given.
2.
2.1
Background
On 5 June 2009, in response to media reports concerning the use of a corporate credit card by the Deputy Mayor for Government Relations, the following statement was issued by the Mayor’s Office: The Deputy Mayor for External Relations Ian Clement has handed back his corporate credit card following an internal investigation into its use. The investigation established that there were items on the bills that were not related to GLA business. The card had been used on a limited number of occasions to purchase personal items. On every occasion the expenditure had been repaid at the earliest opportunity and it was firmly established that there was no personal gain on any occasion. Nevertheless, personal use of a corporate credit card is a breach of GLA regulations. Mr Clement has apologised to the Mayor and appropriate action has been taken. The Mayor Boris Johnson said: ‘’Openness, transparency and taxpayer value are at the heart of my administration. I take very seriously indeed any behaviour that could potentially raise questions about that firm commitment. Although Ian repaid the GLA as soon as the credit card statement was received, he should not have used it in this capacity and so appropriate action has been taken.’’ 1
2.2
On 16 June 2009, the GLA website published full details of all Ian Clement's purchases made with the corporate credit card. This comprised corporate credit card statements (Appendix A), a summary of all expenses incurred since 1 July last year (Appendix B), corporate credit card receipts (Appendix C), and a summary of personal expenditure charged to the corporate credit card (Appendix D). 2
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http://www.guardian.co.uk/uk/davehillblog/2009/jun/05/boris-johnson-ian-clement-expenses-gla http://www.london.gov.uk/mayor/team/expenses/index.jsp Page 1 of 2
City Hall, The Queen’s Walk, London SE1 2AA Enquiries: 020 7983 4100 minicom: 020 7983 4458 www.london.gov.uk
2.3
The Guidelines for the use of Corporate Credit Cards (Appendix H of the Expenses and Benefits Framework) was also published on the website and is attached as Appendix E.
3.
3.1
Issues for Consideration
The Deputy Mayor for Government Relations, Ian Clement, has been invited to the meeting of the Committee in order to answer to Members’ concerns regarding his use of a corporate credit card. The Mayor’s Chief of Staff, Sir Simon Milton, and the GLA’s Executive Director of Resources, Martin Clarke, have been invited in order to discuss more generally the GLA’s expenses processes and systems.
3.2
4.
4.1
Strategy implications
There are no strategy implications.
5.
5.1
Legal implications
By virtue of the Assembly’s powers set out in section 34 of the GLA Act 1999 (as amended), and by virtue of BMAC’s terms of reference, the Committee has the power to do what is recommended in this report.
6.
6.1
Financial implications
There are no direct financial implications arising from this report.
Background Papers: None. Contact: John Barry, 020 7983 4425, john.barry@london.gov.uk
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