Equalities quango criticised in pay row
Updated on 20 July 2009
The Equality and Human Rights Commission is heavily criticised for paying more than a million pounds in redundancy and consultancy fees to seven senior staff whom it subsequently re-employed.
The public spending watchdog has refused to sign off the accounts of the Equality and Human Rights Commission, which is already in a state of turmoil over the re-appointment of Trevor Phillips as chairman.
Channel 4 News has spoken to one of the three commissioners who resigned in the past three days. Another is expected to go in the next few days.
The National Audit Office refused to fully sign off the accounts of the Equality and Human Rights Commission after it paid out the consultancy fees without treasury permission.
In a hard-hitting report, it said poor planning during the setting up of the EHRC, which replaced three separate equalities bodies from 2007, left it 140 staff short when it was due to start operations. It had only 10 of 25 directors in place, the report said.
The chosen solution was to bring back, without a break, seven staff members who had left the previous bodies and taken advantage of severance packages worth a total of £629,276 between them.
But the treasury, which had not authorised the move, then refused to meet the cost because it did not believe it represented value for money and raised the possibility the severance should have been repaid.
NAO head Amyas Morse said: "The Equality and Human Rights Commission was established 18 months before it became operational to enable a smooth transition from the three predecessor organisations.
"But delays in bringing in resources sufficiently quickly meant that, when it started doing its job, it lacked more than half of its complement of directors, and made the mistake of re-employing some senior staff from predecessor bodies without authority.
"The shortage of senior staff weakened EHRC's ability to develop a clear business strategy, agree an organisational design and ensure effective operational management was in place.
"These problems could have been avoided if the transition from the previous equality commissions had been better planned. The EHRC has since made welcome progress in improving its controls and governance."
The criticism came amid turmoil at the EHRC, with several of its commissioners resigning amid reports of internal dissent over the reappointment of Trevor Phillips as chair.
Mr Phillips, who had been widely tipped to be replaced, was given a second three-year term last week by Women and Equality Minister Harriet Harman.
Jon Snow spoke to Neil Kinghan, the Equality Commission's interim director.
