Chief minister accused of abusing his title
Saturday 12th February 2011, 2:29PM GMT.
DEPUTIES have been asked whether Lyndon Trott abused his position as chief minister on a trip to Chile where he allegedly used his title when promoting a company of which he is a non-executive director.
An email from Gary Blanchford to all States members yesterday made the claim, which could be discussed by the States Assembly and Constitution Committee at its next meeting.
Deputy Trott (pictured) defended himself in an email to the Guernsey Press and said that his role with Concept Group Ltd was declared on the register of members’ interests.
‘I am always conscious to define what role I am speaking when attending personal business matters on behalf of Concept Group,’ he said. ‘However, I also have to balance this with my duty to declare that I am Chief Minister of Guernsey and which requires me to represent Guernsey, even when on private business’
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Pity this article doesn’t include all the details published in the Guernsey Press hard-copy, which indicate a far more questionable situation than that provided here.
Is this news? Not really. In my opinion it’s merely another question raised about Mr. Trott’s ethics and motivation – and yet another example of the CM’s smoke and mirrors responses.
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The shortened article above is a bit misleading. The information that was received stated that he was on sales tour of South America With the Concept Group of which he is a Non-Executive Director. At presentations he was being introduced as the Chief Minister of Guernsey, he would then speak on Guernsey as a Financial center and that would be followed by the managing Director of Concept giving his sales pitch for the Concept group.
One has to ask if Guernsey’s Chief Minister is not abusing his position for his own ends by using that position to promote a private finance company in which he has an interest.
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Gary Blanchford is fully justified in bringing this matter to the attention of the Guernsey Deputies.
Politics and perceived personal gain have never mixed and will never be tolerated by the electorate.
Despite the fact that the Chief Minister has declared his status as a non-executive director of the Concept Group Ltd to the States, there is only one way to reassure the general public that he is not seeking to gain an advantage and that is by not putting himself in such a position in the first place.
Presumably the States Assembly and Constitution Committee will eventually make judgement on this issue, but I find it somewhat concerning that Deputy Trott is able to justify, on this occasion, his ability to mix and match his private business with that of his high political status as Chief Minister – “However, I also have to balance this with my duty to declare that I am Chief Minister of Guernsey and which requires me to represent Guernsey, even when on private business”.
Incidents like this do nothing whatsoever to enhance the reputation of elected politicians, whose electorate are constantly looking to them for reassurance of open-ness and transparency in all their actions. Surely there are other directors who could promote the company without the political sidebar? It seems naïve to expect that somehow Deputy Trott’s position is not going to be mentioned, and once it is, how can it not be of influence in this promotion? The wisest course of action would surely be to avoid any promotional work at all while holding such a high political position. How many people in South America will know the exact position of the “Chief Minister” in Guernsey: that it is for a small island with a population of approximately 65,000? It sounds very grand and influential: how can it not have some effect on those listening?
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Well, what do you expect from someone who have demonstrated time and time again that morality and ethic are not part of his vocabulary?
And the worst part of it is that most deputies implicitly approve his attitude by their silence.
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So more of the same then. To me, as a Landsbanki depositor, just another example of the self-serving cynicism and moral bankruptcy I have come to expect from the man.
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More pathetic moaners, whinging about anything and everything. Get over it and get a life, please.
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Surprised we have’nt copied jersey yet and called all our deputies (senators) just imagine the freebies and poncing about in America that would go on then.
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As a full time employee of the Guernsey taxpayer I do hope that he was carrying out this private business in South America during his allocated annual leave period
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And the problem is what exactly?
If one is stating a fact, such as ‘Mr Trott is CM of Guernsey’ that is no different from the Press reporter describing Mr Blanchford as a spokesman for the Landsbanki Depositors Action Group (which is what the full article in the Press says) i.e. a true fact, but not particularly relevant to the content of the article
Unless of course Mr Blanchford is somehow trying to make a link and attempting to discredit our CM!!
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Credit should go to Gary Blanchford for raising such an important issue. Depuy Trott allegedly has promoted a company in which he has a financial interest, at the same time his managing director in that company has introduced deputy Trott as Chief Minister of Guernsey. This is definately an abuse of his title, and he should be held to task.
It is sad that the Chief MInister has tried to cloud the issue by noting he had declared the role on the register of member’s interests, but this is irrelevant, as it is the current activities which are the abuse of his title. It is just another example of Trott’s ability to try and spin his way out of trouble, but many of us are already aware of just how far he can be trusted.
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Perhaps Mr Trott could spend more time in his role as Chief Minister sorting out the cronic financial mess he has left behind in Guernsey. and we note his hearty disregard of people’s loss of confidence in the financial sector over the last couple of years.
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Mr Pyor,
There is no way that Mr Blanchford could ever discredit your so called Chief Minister he has demonstrated that he can manage that by himself on numerous occassions
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Mr Blanchford works is appreciated by all Depositors. Mr Trott works can bring down the financial centre in Gernsey. Well done both!!!
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There’s no way that our company would ever take a non-exec on such a promotional tour. The whole purpose of such tours is business, and the whole purpose of non-execs is generally internal regulation. One might have them along at a drinkies do locally, but in S America? Maybe, if they were already there on holiday, perhaps.
The only reason he is along is to use his public position to lend weight to the company’s offering.
There is no way the former “fisherman” and bookkeeper would ever have gotten onto the board of any institution, without holding his public office. And how he got that will be an eternal mystery to me.
Personally, I’d have thought the CM promoting Guernsey would include promotion of all trust companies – not just the one. Maybe that’s exactly what he did. He certainly should not endorse any one company or it’s product over another, or be seen to be so doing.
I also note that recently he has been outspoken on the subject of GFSC regulation being somewhat over enthusiastic. Was that too funded by his paymasters?
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Looks to me like LT’s interests are declared, so no issue there.
The problem Gary Blanchford has that even if LT has committed some Code of Conduct infringement, which I suspect he hasn’t, but no expert, it just looks wrong coming from Gary Blanchford.
Same dogs, same quarry, different racecourse.
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If anyone other than Gary Blanchford had raised this question I’d take a bit more notice, it’s a well known fact that Mr Blanchford and his fellow Landsbanki depositors have no time for our chief minister.
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Neil
Can you imagine David Cameron jetting off to South America, not to promote the UK as a QROPS domicile as a whole but to promote one particular QROPS product offered by a company of which he is a non-executive director – even if the position had been declared in the House of Commons Register of Interests?
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Globe-trotter-gate!
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Nice and sleazy does it….
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Kevin & neil,
Landsbanki has nothing to do with this, which you would realise if you had the full facts available to you. I have only presented the facts that were passed onto me. Those facts, this week will be sent to the States members Code of Conduct Panel Chairman, He will then decide on the facts placed before him if there is a case to answer. If he decides there is it will go to a panel. Its whats called keeping an eye on our democracy. Hopefully the end result will be a more accountable States Code of Conduct. The present one is so far out of date I’m surprised the UK even speak to our Ministers for fear of leaks.
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It is not that the Chief minister has declared his interest it is the fact that he is actively introduced as the Chief minister for a private concern which he receives money from – how keen would concept be to take Lyndon Trott, private citizen on these junkets rather than Lyndon Trott Chief Minister?
And why hand out yet a different business card – if he was there on Concept business why hand out his private card – looking for even more business off the back of his Chief minister status?
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Sounds to me that there’s a lot of kettles calling the pot black.
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Just say that Concept for any reason got into financial problems.
It would not be good for Guernsey, if it is true that our Chief minister is promoting this financial business.
It most certainly is not good for this Island and shows a lack of commonsense by him, that a Chief Minister should have above all.
I would say have a vote of no confidence in him, but turkeys do not vote for Christmas.
If we were to have less Deputies this would happen more often as the States are becoming less and less transparent as the controlling cabal gets smaller.
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Isnt that why a large proportion sign up for the job look at Blair.
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Gary Blanchford
Incredible
How can you possibly say in your last post that ‘Landsbanki has nothing to do with this’, when you and your group have spent some considerable time trying to discredit the CM and the finance industry
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Gary Blanchford
” Landsbanki has nothing to do with this ”
Of course it has, you have been out to get Lyndon Trott ever since the Landsbanki Bank went bust.
Having known you for many years I didn’t know you were such a vindictive person.
I with many others are just fed up with this continual sniping, as soon as a connection can be made with Landsbanki.
Life is too short, get over it.
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Pyer / John T
In a democracy, depositors are free to comment on non-deposit-related matters – and this is an important issue. Do you think it is appropriate for any Chief or Prime Minister to travel throughout S America (he was also in Brazil and Uruguay, I understand) on a marketing trip to promote a private company of which they are a director? There would be uproar if this occurred in the UK or any other mature democracy. Shows that Guernsey still has a long way to go.
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I wonder which way he will jump when it comes to decide on island wide voting … that is if he is in Guernsey of course
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M Flynn
Feel free to comment on anything – just make it relevant and do not keep dragging up the issue you have with Landsbanki, poorly disguised under concern for the CM’s presence in South America.
The whole thing became tedious some considerable time ago, especially in light of the recent announcement from the liquidator concerning the virtual 100% return of your original investment
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Mr.Mrs.Ms.Pryer,
Why else would this man be globe trotting around S.America but for the fact that he doing promotional work for his paymasters, his actions/antics remind me of what goes on in a banana republic, buy the way are bananas being cultivated in Guernsey yet?????,and may I remind you once again Mr.Trott does not need Mr Blanchard to discredit him, time will surely answer that
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Pyer
I don’t think anyone needs to discredit the CM, I think he has managed that all on his own.
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The real issue is if L Trott has done anything wrong.
If GB has highlighted this because of bad feeling towards him thats another issue.
If he is guilty of anything then GB was right to report this.
Dont shoot the messenger.
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Pyer/John T
Its funny really,no one is making anthing up here, the facts that are being reported to the Code of Conduct are exactly as they were reported to me. In my opinion there is no doubt that an independent arbitrator should decide on this matter and that is what the code of Conduct Panel is. What ever the decision.
John T if you have known me for years you will also know I have been politically motivated all those years long before landsbanki. My strongest motivation being Transparent, open , honest Government and a freedom of information Law.
Pyer.
The Liquidators figures are a final return of 87 to 91 %, The exaggerated figure you quote was given out in the states by the Chief Minister, he was publically corrected by the then Administrators.
Facts my friend!
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Well, it encapsulates the man’s total lack of moral compass, just for those who had not noticed the obvious yet!
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Just unbelievable that the guy seems to get away with anything and carries on totally unchecked.
It is high time that people vote for deputies worth their salt, who can challenge that clown.
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I was interested in the Chief Minister’s response to an article on this subject published in the Telegraph online today:
http://www.telegraph.co.uk/finance/personalfinance/offshorefinance/8326083/Guernsey-chief-minister-accused-of-using-title-to-promote-company.html
“I abide by both the rules and the spirit of the Code of Conduct for Members of the States of Deliberation at all times – as chief minister, I am never ‘off duty’, because I am always carrying with me the responsibilities of the office. Moreover as a regulated director I have also maintained full and appropriate transparency in all of my private business matters, and I have declared my only interest in accordance with the Rules of Procedure”.
The fact that in his opinion he is never ‘off-duty’ is surely all the more reason why he should not be involved at all in a financial promotion in South America, albeit that he has declared his interest to the States.
No-one would deny Deputy Trott or any other politician a private holiday away from the island during their tenure: taking time off to support the financial promotion of a private company cannot come into this category, and, if the Chief Minister is always ‘on duty’, should not and cannot be construed as being appropriate to that ‘duty’.
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I hope someone is checking his expenses… A private trip finaced by Taxpayers ? I DO HOPE NOT !!!
Who checks his expenses ?
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There have been some fascinating comments posted here. I tend to ignore those posted by known Landsbanki creditors who, let’s be honest, have a rather blatant motive for jumping in with both feet where the CM is concerned.
Let’s bring some balance back to this debate.
Like everyone else, the CM and other Ministers need to make a proper living. For most if not all Ministers, its often a 70 hour-plus working week, and they are indeed “always on duty”. Quite a few members of the Policy Council give up significant private earnings opportunities to stand for the States. £30k or £60k might sound like a very good salary to some. For others who can and were making a multiple of those figures before deciding to serve their island, its peanuts. They have every right to earn extra income from other jobs, including non-executive directorships.
Whatever some people think of the CM, those of us in the finance industry know that he does a fantastic job promoting our main industry. One could argue that a better title foir him might be “External Affairs Minister” rather than Chief Minister, but that’s another issue.
Some key points:
1. Our Chief Minister and other Ministers should be paid a sufficient salary so that they don’t need to accept non-executive directorships. If outside interests start to be outlawed, then the already-short list of people of high calibre wanting to stand for such positions will become even shorter.
2. Any external non-executive directorships should be “appropriate”. Should the Chief Minister or Treasury Minister sit on the board of financial services companies ? Probably not. You don’t see George Osborne on the board of Barclays Bank (and that really would be a conflict given the bankers’ bonus debate!).
3. Non-executive directors don’t normally participate in marketing trips for the companies on whose boards they sit. That’s really an “executive” role. Is the CM accepted by the GFSC as suitably-qualified to be an EXECUTIVE director of a trust company? I’d be surprised if he was. Its rather different from being a Non-Executive Director.
4. All the criticism has been aimed at the CM. Concept seem to be getting very little criticism but they are far from blameless here. Far from it. They know exactly what they are doing. How can a non-executive director, if he’s doing his job properly as an independent person, carry out those duties when such a good mate is the Managing Director? Impossible – there is no way that the CM should have put himself in that position, nor should Concept have put him in that position. Was he on the board of Concept before he was elected Treasury Minister or Chief Minister? I don’t believe so. He only became useful to Concept after he gained a high profile. Sorry – that’s just wrong and questions must be asked of Concept by the GFSC, WITHOUT any influence by the CM on the GFSC of course.
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This whole story and the posts on here are just examples of people with an axe to grind looking for anywhere to grind it, regardless of whether there is anything of substance to complain about or not.
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Gary,
Landsbanki may have nothing to do with this but the fact remains that you appear to have a personal vendetta against the CM.
I’m not saying what he has done is right or wrong but it does not look good that you have taken it upon yourself to question his actions.
I don’t think you can deny that he is not top of your Christmas card list!
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GM’s post is excluded from my comment above.
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Three parts to this, Part 1:
A Non-Executive Director is appointed to ensure good governance practices are in place in the organisation in which he or she is appointed.
They should also advise the board, or Audit and Risk Committee on risk, audit, strategy and other high level matters. They are not appointed for external sales pitches or promotional activity as they are not executive staff.
Without considering Trott’s role in respect of SOG, he has gone outside his mandate for the company anyway, as he is actively promoting it – that is a role for an Executive Director, not a non-executive. Trott, as a Non-ED, should be independent and objective of decision making within the organisation externally; their job is to question things behind closed doors, not be out there promoting it! He needs to read the Combined Code or other governance publications.
Part 2
With respect to the SOG and the Code of Conduct, if what Gary Blanchford is correct and the COConduct is out-dated? Then it is hardly likely that there will be sufficient grounds to get rid of Trott. However, I would imagine there should be grounds to have a request made where Trott is required to disclose any personal financial interests in his activities and how these have come about while in employment for the States. For example, in this instance, he should voluntarily disclose his bank account information to the internal reviewer.
Final comments:
Just because you sign a conflict register does not mean that exonerates you from them pursuing personal interests at the expense of, or bringing into disrepute the, organisation for which you work, e.g. SoG. In this instance Trott is using his Ministerial position to promote the interests of a private organisation for which he is a non-exec, which, frankly, is abusing his position.
The idea of a conflict register is to front up with the ‘potential’ for a conflict. Someone higher up should then make an informed decision to accept or reject the level of risk for which the person is linked to.
The whole purpose of conflict registration is to avoid this kind of incident – by Trott doing what he has done he is effectively sticking two fingers up to the conflict process and SoG by saying he is prepared to actively pursue something for which he has already declared a conflict!
Oh, and whether to fire him – who paid for the trip and are ANY expenses claimed back to SoG?
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Darren
Some good points but in relation to Part 1, the Combined Code does not apply to this company as there are no public shareholders who need its protection. There is no general duty of independence for NEDs of private companies and it is up to Concept to decide what its NEDs should do. In the context of a private company, an NED is simply someone on the board who is not an employee.
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Does Mr Trott really believe that declaring an interest allows him to misuse his office in relation to that interest? The register of interests is supposed to be an aid in preventing misuse of office not a licence to misuse in relation to the interest.
Further, marketing and promotion are not normally considered non-executive activities and, as far as I am aware he has no background in commercial activities of this kind prior to entering local politics. His only value to Concept in this area would seem to be his status as Chief Minister.
For me, the whole affair stinks.
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Trott and Berry put on the same show in Malaysia late last year, and I guess much of the far east.
How all of this could possibly have been squeezed into Trott’s holiday allowance is intriguing.
The line between his official role and his commercial interest was not clearly drawn, only the former was mentioned.
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stop squabbling & start voting
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If he’s using his CM name to help with personal business interests in other jurisdictions, whether he has declared them or not, then that can’t be right.
What gets me is that he is out there lauding it and thinking he’s all high and mighty when in honest truth, he was bottom of the poll (of 6 elected seats) for St Sampsons – the Parish in which he stood for election in the first place. Is it right that someone who is ranked as lowest in their Parish can then be rewarded with the top job?
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Whether or not Guernsey electors like the Chief Minister, and clearly many don’t, and whether or not it is felt that he does a good job domestically, I would wager that a huge percentage of the finance industry would state that he does one heck of a good job in promoting Guernsey’s interests and image overseas, especially in relation to our main industry.
His commitment to successfully lobbying UK and overseas politicans has been a massive benefit to Guernsey, and one only has to compare the currently very poor relationship which Jersey and the Isle of Man have with the UK and the EU to appreciate that. That lobbying has been a massive investment of his personal time, and has absolutely nothing to do with the Concept situation.
For those posters who think that travelling around the world flitting from airport to airport (whichever class is flown), and from hotel to hotel (no matter how good the hotel – its facilities can hardly be enjoyed on a whistlestop visit with wall-to-wall meetings), I can assure you that its not glamorous and isn’t a perk. I’ve been doing it for 30 years and it’s nothing other than a chore, unless you are lucky enough to be add a few days of luxury on at the end, which is extremely rare.
I don’t like what’s gone with Concept, which I think is an unacceptable situation, but I really don’t think its right or proper that people who dislike him are using this to try to bring him down, especially those bitter and twisted Landsbanki depositors.
If Deputy Trott wasn’t travelling round the world lobbying foreign politicians and protecting Guernsey’s interests who would be doing it instead? Bernard Flouquet for his multicultural joke repertoire? Charles Parkinson for his warm inter-personal skills? John Gollop for his slick image? Dave Jones for his tolerance of foreign cultures? You get the picture. Deputy Trott is by far the best person that we have got to represent Guernsey on the international stage.
Be very, very careful what you wish for.
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GM
Whilst I’m quite as happy as the next man to have a pop at the CM when the chance presents itself I would think that any honest person who cares to take a couple of steps back for a moment would say that your 4.04pm post is very fair and balanced
Who else indeed?
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Does anyone imagine that Trott would have been invited to go on the promotional tour with Concept if he were not Chief Minister? Maybe he would, I’m not so sure.
KenD
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But whilst he’s selling Guernsey abroad, who is running the shop?
Judging by recent events such as the runway, population control, and island wide voting, there is no-one home. Its a mess.
As we were told recently by the Welsh Office. But we don’t like bad news.
By all means sell the Island, but don’t ignore the main job.
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Gary Blanchford was right to bring this situation to the attention of the deputies. He might be a victim of the Landsbanki fiasco he is also a resident and taxpayer of Guernsey and a man of integrity.
No one should be suprised at Lyndon Trott’s lack of popularity with the LG depositors. He had the opportunity to aid the victims but had neither the imagination nor the will to do so.
GM (posting above) is being fair in some respects but whilst the CM might have been doing his bit for the financial industry he has in the eyes of many done great harm. If you believe that the retail sector is not of great importance to the island then so be it. I believe that the island’s reputation has suffered badly and there are many of “the 1600″ who will not have a good word for your island or those that regulate its banks.
Lyndon Trott could have really helped instead of allegedly just pretending to, and would have done credit to Guernsey and his own reputation at the same time.
He chose not to…..
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Pity he didn’t “promote” the interests of the Landsbanki Guernsey depositors who are still out of pocket because if his shameful inaction.
He was off “promoting” Guernsey in the far east when Landsbanki collapsed. Is the man ever actually on the island?
If he enjoys globe-trotting so much, I suggest he gets on a plane to Iceland and pulls his finger out for matters that actually concern his main job.
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Taff – he is Chief Minister, not Prime Minister. He has no executive function, unlike David Cameron, and so the ship is still being steered in its own idiosyncratic way as normal.
The WAO completely failed to get their head around non-political / non-executive government and tried to make square pegs fit into round holes. Their recommendations were obviously based on so many assumptions which do not apply here. I’m not saying we should not seek to improve our system, just that the WAO did not add anything helpful to the issue.
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Do we know for sure who paid for the trip and whose time he was on?
If he was on States time and they were covering costs then one wonders if other companies such as FirstRand, Close and Gower can request and expect to receive such support from the island’s tax payer?
If he took holiday allowance for all of these trips and Concept paid for everything then surely he should have been promoted and introduced as a Non-Exec Director of Concept (who happens to also be Chief Minister) who was there promoting Guernsey as a good location for Concept?
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GM
Excellent post at 4.04, now just wait for the comments from Gary Blanchford and his mates, I bet they are biting at the bit, and will be out to get you as well..
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GM 4.04 you missed one off the list of shambling disfunctionals ,and its the man himself , i presume in the interests of saying that he’s the best of a really ,really bad bunch you must be gullible if you think that because lyndon says he does a good job ,or indeed that a bunch of equally gullible bankers who cant wire a plug between them ,think so too ,wont make it so,
I can only imagine that your rose tinted outlook is influenced by the fact that you are either A related , B married to him or C paid by him or D actually him .
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johnT
Thanks.
Frankly I don’t give a stuff about the comments of the likes of Gary Blatchford, Joe B and Stuffed by Lyndon. They can’t see the wood for the trees and are clearly ignorant of the CM’s actual role (as pointed out by Terry Langlois’ excellent post), as well as being unable to grasp reality in relation to the Landsbanki situation.
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Whilst there have been a lot of valid points made already on this matter, they all seem to be focusing internally.
I’m asking myself what impression of Guernsey people attending these conferences will have walked away with.
I don’t think it’s at all flattering to us. It just plays up to all the negative opinions people like to have about Guernsey…’tax haven’…’Mickey Mouse banana republic’…’questionable ethics’. It says our CM and our politics are for sale.
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Pyer
“Feel free to comment on anything – just make it relevant and do not keep dragging up the issue you have with Landsbanki, poorly disguised under concern for the CM’s presence in South America.”
As Gary rightly pointed out, this has nothing whatsoever to do with Landsbanki. Are you trying to curtail his freedom of speech, merely because he also happens to have commented on LGL in the past?
“The whole thing became tedious some considerable time ago, especially in light of the recent announcement from the liquidator concerning the virtual 100% return of your original investment.”
That figure was spun by Trott; it didn’t come from the administrators / liquidators. Get over your antipathy towards LGL savers and focus on the issue at hand. See today’ opinion in the Guernsey Press.
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1776
Totally unrelated – I can assure you.
I happen to know that the CM does a fantastic job when representing the States of Guernsey off-island. I speak to many who see him in action, both from here and from where he visits, and I can assure you that he is held in high regard. The relationships that he has built with off-island politicians is priceless, and something which is only able to be valued when you don’t have them. Just ask Jersey, whose external image is at an all-time low at the moment.
He is the best of a bad bunch, that’s for sure, but that’s as much a reflection on him as it is on them. If they were a good bunch, then his external efforts representing this island would be equally impressive.
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GM
What do you think GB should have done with that info then?
He cant win either way can he? if he said nothing people would be asking why he did not report it.
Or as in this case where he has reported it he`s just doing it because he has an issue with LT.
“I don’t like what’s gone with Concept, which I think is an unacceptable situation, but I really don’t think its right or proper that people who dislike him are using this to try to bring him down, especially those bitter and twisted Landsbanki depositors”.
The other side of that is where people ignore or support their mates when they know they have done wrong, and i bet that happens far more often.
Your post gives the impression that although you say your not happy about what has happened with concept you are happy to support him?
Maybe he thinks like you do “the best man for the job” or “they would never get rid of me as there`s no one out there to replace me”
He maybe good at what he does but that does not mean he should be able to act as he pleases.
But with statements like,
“Be very, very careful what you wish for”.
Im sure he will fell he can get away with anything.
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All very fine : but all I would like to have made clear : Was the Chief Minister’s trip funded by Guernsey taxpayers, or not ?
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Bobs comments: There is no way the former “fisherman” and bookkeeper would ever have gotten onto the board of any institution, without holding his public office.
It could be asked what value is Mr Trott to the company as an non-exec if he was not the CM, because it is obvious that in announcing him in that way, the value must be to give the company a confidence boost, if he was just plain Mr Trott, what could he say to influence the attendees that could not be said by what I assume are capable executive directors.
As Chief Minister of Guernsey States, he is still an equal to all other States Members. I am sure he was not voted in (marginally at that) to exploit the position for his own benefit. I guess he has to earn his keep!!!
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Totally agree with GM’s comments at 4.04p.m. Very astute post.
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In the UK when a new Minister is appointed all his shares have to go into a blind trust over which he has no say let alone control. The thought of a Minister actively promoting a specific company with with he has a declared connection would be a sacking offense.
For a serving Chief Minister to go on what was effectively a corporate promotional tour in South America (presumably funded by Concept) is an outrage.
Some of the questions that need to be answered include:
1) Who paid LT’s air fare and hotel expenses?
2) How much was LT paid for his services?
3) What previous trips has LT taken with or on behalf of Concept? If any, then questions 1 and 2 above apply.
4) Were LT’s colleagues aware of, and if so did they approve, this trip?
5) Was this trip taken out of LT’s holiday entitlement?
Where is the transparency in all this that one expects of any Civil Servant-not least a Chief Minister?
If Mr Trott hadn’t been ‘spotted’ while in South America by a Guernsey resident would we even know about this? NO.
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There is no way the former “fisherman” and bookkeeper”
I’ve heard things like that that so many times over the years. “Look at him he was a deck hand at 17″ or “that man was only a plumber”.
Not entirely what era Bob comes from but I’ll take a ground-up bloke any day over someone who had their wealth and privilege handed to them via mummy or daddy’s standing or wealth.
Stupid thing to say.
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Shot himself in the foot again, but ensured foot was not in mouth this time.
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Not wishing to stir things up any further but…
It is of course proper that, the Chief Minister should declare his outside business interests on the Register of Member’s Interests.
I would question however whether it is necessary for Concept Group’s online marketing literature to note that Lyndon Trott is a Non Executive Director and “is the Islands Chief Minister and formerly served as the Treasury Minister”
see – http://aurora.gg/about-concept-group.html
Surely, if he was not trying to use his position to promote this business, then he should not include any reference to his ministerial status within the company’s promotional website?
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Bob
A recent deputy prime minister was a steward on passenger ships in his past life, so your comment was rather stupid me thinks.
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Yes, Neil, very stupid thing for you to have said. You make assumptions but clearly know absolutely nothing of me.
So here’s the thing – I am the bloke you so much admire – started out with nothing. Scholarship, dead-end jobs (I’d have jumped at either deckhand or plumber), bloody hard work and a bit of luck. My people? Greenhouse hand and a cleaning lady. Thankfully, both very intelligent despite their obvious social standing and wealth. I dread to think what sort of place you must have crawled from if you think I had privelege thrust upon me.
Lyndon, I believe falls much more easily into your other category than I.
As for my era – well, same as Lyndon’s. We are contempories, and like most locals our paths often cross socially or in business.
The point – which you have entirely missed – is that he wouldn’t be on the concept board as a non-exec director though the most recent of his former non-states activities. He is there because of his states position.
Ground-up? What, for shirvy?
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Neil – I do not think that is the real issue.
The fact is, for any company Board to employ the services of a non-exec, they must ensure they are paying for advice ie Professional or through experience, that adds value to the Board.
In this instance, it does seem odd that a non-exec was effectively acting as an exec and therefore one has to assume, was speaking on matters that he had greater experience of than the CEO or other exec directors. I do not believe that was the case.
How many directorships had Mr Trott held prior to being a States Member, where he gained experience over an above the Concept Board directors??
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Devils-adv
I may be picking the wrong place to have my fight, but hell, it ain’t the first time. You clearly have knowledge of how non-exec diretorships work and therefore accept that those who have reached a certain point in life, or career, be that political or private might choose to take the governance course and land a seat on one or many Boards. It’s common practice and a cursory and a quasi career path for some; look at any of the Commercialised Boards you will see those of the private sector have gone States side, so I assume politicians go private side.
To answer your direct question – I don’t know and I’ll assume you know it was none? Everyone has to have their first directorship at some point and why wouldn’t it be with one of his school mates – seems a no brainer to me.
Bob
You aren’t very good at this are you?
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There seems to be a misconception about the role of a non-executive director, which is supposed to be to provide independent, impartial, unbiased corporate governance, which includes ensuring that the executive directors toe the line.
In his comment on the International Advisor website, Roger Berry of Concept comments that he has known Lyndon Trott for 40 years and will be his best man at his wedding later this year.
Hmm…doesn’t seem very independent to me. I can’t see Lyndon carrying out that role withoit any bias – its clearly impossible given what we we’ve been told about the strength of their relationship.
Selecting your best mate as Non-Executive Director is a sure sign that you really don’t want to appoint somebody who might not always agree with you as the MD or who might question you. That’s what the NED is supposed to do. So why was he appointed?
I would have thought that the GFSC might show some considerable interest in that situation. If they don’t then they certainly should do.
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GM, I think you are confusing the position of a public company (where the shareholders are not board members and so you need independent non-execs to ensure that the board are acting properly in the interests of shareholders) and a private company like Concept in which the board members and shareholders are the same people.
The shareholders of Concept do not require the assurance that the board are doing the right thing, as they are represented on the board themselves (I should mention that i have no particular knowledge of the ownership of Concept but I very much expect that Roger Berry is the majority shareholder and that the other key shareholders are also on the board)
Even the GFSC does not require the board of a licensee to have “independent” non-execs, it just requires there to be a mix of execs and non-execs and for the board collectively to have the requisite skills.
I’m not saying that LT has not behaved improperly, but banging on about his independence or non-independence is a red herring. There are far better reasons to question his actions, and those of Concept.
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It most definitely gives off the impression Concept have got the luxury, power & influence, to tailor business to suit.
The mob like to have people in high places ready to pull the right strings.
LT has been used by Concept. He is sharp enough to realise this. There is no way he can claim to be seen as being open, transparent & impartial.
Everybody can see it for what it is.
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Terry Langlois
I think you’ll find that all regulated financial services companies are required by the GFSC to operate to suitably high standards of corporate governance.
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GM – but my point is that there is no requirement for independence in the GFSC regulations. Corporate governance depends on the circumstances.
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Terry Langlois
All regulated businesses are expected to apply good standards of corporate governance. For fiduciary businesses the GFSC are focusing heavily on corporate governance and board procedures when undertaking their visits. So while “independence” may not be explicit, it is certainly implied.
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GM & Terry Langlois
Whilst you are discussing the finer points of company procedure, I was approached by one of the UK media and asked about , “Politically exposed persons”.
Now it would appear that Berry had told this member of the media, when asked why, Lyndon Trott had political references after his name on their Company website, rather than financial references, that, the Company was required to do this as he was a “ Politically exposed person”.
My understanding ( which is very limited as regards Company law) is that “politically exposed person applies to a client, not a member of the board of a company.
Can you offer any clarity on that subject?
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Gary
I think it would apply to all dealings of a regulated financial services company, so would cover both their clients and their board members. Logically, a politically-exposed board member will be an acquaintance of other politically-exposed persons.
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Thanks GM
since puting up my post, I have searched the GFSC website and found this definition. The link to the report is here. Its all a matter of interpretation, but does say ” other than the Bailiwick”
http://www.gfsc.gg/The-commmission/Policy%20and%20Legislation/Simplified%20Guidance%20on%20the%20AML-CFT%20framework.pdf
APPENDIX 2
“politically exposed person” means –
(i) a person who has, or has had at any time, a prominent public function or who has been elected or appointed to such a function in a country or territory other than the Bailiwick including, without limitation –
(A) heads of state or heads of government,
(B) senior politicians and other important officials of political parties,
(C) senior government officials,
(D) senior members of the judiciary,
(E) senior military officers, and
(F) senior executives of state owned body corporates,
(ii) an immediate family member of such a person including, without limitation, a spouse, partner, parent, child, sibling, parent-in-law or grandchild of such a person and in this subparagraph “partner” means a person who is considered by the law of the country or territory in which the relevant public function is held as being equivalent to a spouse, or
(iii) a close associate of such a person, including, without limitation –
(A) a person who is widely known to maintain a close business relationship with such a person, or
(B) a person who is in a position to conduct substantial financial transactions on behalf of such a person.
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Gary – the fact that a director of Cencept is a PEP would be relevant to other businesses treating Concept as a client, if those businesses are subject to AML CDD requirements.
However, the use of this as a reason to put his political office on the website is bunkum. There is absolutely no need to put it on the website in order to inform the small number of people it would affect.
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Gary
re you “other than the Bailiwick” reference in your latest post – this is because you cannot be a PEP in your own country.
IE, if a local bank was to do business with Concept they would not need to treat LT as a PEP, but if they use a bank in South America, LT would be a PEP (assuming the local regulations are equivalent)
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John T – I wouldn’t want “Two Jags” on my board either – you can keep him.
He too would add little apparent value to a financial services company save for his former political office.
Particularly perhaps in using his pugnacious reputation in the selling of car insurance? I think it demeans the office; the company attempting to exploit it and the individual. All very distasteful.
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To narrow it down:-
What was Mr Trott able to tell the attendees that the CEO or other exec director/s could not?
ie: what area of expertise did Mr Trott exhibit that made what he said more pertinent than if it had been spoken by the CEO etc..
If the answer is, nothing, then one can only assume the only value to the company is his political position.
Would it be right for Mr Trott to receive remuneration as a non-exec, only by virtue of his his position as CM of Guernsey? I would have thought it better that he refrained, however, if he was not an exec at all, and was relatively speaking on behalf of a Guernsey company for the benefit of the island, then I believe that would be deemed to be acceptable, providing he was not showing favour over any other local business in the same market.
Declaration of Interests signed on 29 December 2006 – held no directorships – was a part time Financial Controller and bookkeeper.
Deputy Lyndon Trott was voted in on 1 May 2008 (with 1181 votes representing 1.32% of the island vote). His term of office expires on April 30, 2012.
Declaration of Interests signed on 25 September 2008 – Director of Concept
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The above link apears to have been updated to this one:
http://www.gfsc.gg/The-Commission/Policy%20and%20Legislation/Handbook%20for%20FSBs%20(current)%20August%2010.pdf
In my opinion it clearly shows that Mr Berry may have been shooting a bit of a line, when telling the media that the reason he had to use the Chief Minister’s title’s on the Concept website was because:
they have “no choice but to” list his title on their website because of anti-money laundering rules that regard all politicians as “politically exposed persons”.
It would appear that, according to the Definition on the GFSC site, The Chief Minister is not classed as a Politically exposed person, as a Non Executive Director of Concept.
Not being an expert in this area, I am open to comment and stand to be corrected.In fact I would welcome a legal interpretation of the Commission Policy.
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Thanks Terry
that is a very clear explaination and as i suspected.
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Gary – to confirm your point, nowhere in AML regulations does it require a company to declare if they have a PEP on the board. It is up to the person who is obliged to carry out CDD under AML regulations to work out whether someone that they are dealing with is a PEP or is connected to a PEP.
Never has anyone volunteered that information to me, they are not required to and I would never expect them to.
Berry is talking nonsense.
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