The idea that senior civil servants were involved in a conspiracy or cover-up has been strongly refuted by Policy and Resources.
An estimated £30m price hike in the hospital redevelopment project was withheld from senior civil servants by a small number of project officers between February and October 2023. Politicians on HSC, including the Committee President, didn’t find out until December.
This revelation made headlines earlier this year, leading to several people losing their jobs, and scrutiny of HSC and its governance of capital projects being increased.
That spotlight has now moved to P&R after it was revealed – through formal parliamentary questions submitted by Deputy Gavin St Pier – that politicians on P&R weren’t briefed until 13 February 2024, a year after suggestions of a substantial cost increase were first received.
Some Policy & Resources officers had been told in November and December of the previous year that the cost increase had been discovered, and P&R argue that any delay is due to formal work being undertaken to validate the information.
The continued revelation of more information relating to the hidden cost bloat has led to some suggesting that civil servants had taken part in a ‘coverup’. This claim has led to P&R and the Head of the Public Service releasing a timeline of events and a rebuttal to any ‘conspiracy’ theories.
“There has been no attempt by any member of the Strategic Leadership Team or the current Senior Responsible Officer and Programme Director to cover up or otherwise mislead Members,” said Mark de Garis, the island’s leading civil servant.
“There were delays in communicating the cost pressures to the Policy & Resources Committee and this will not be repeated.”
In October 2023 the States agreed to fund phase 2 of the Hospital Modernisation Project to the tune of £120million.
It was subsequently revealed that a small number of civil servants knew of a £30million possible uplift as early as February 2023, several months before the debate. This information was withheld from the Programme Director and other senior civil servants until 31 October, and from the Health Committee itself until December.
It wasn’t until the 20 March that the rest of the States found out, when the President of HSC revealed the withheld information and incident as a whole.
A full breakdown of HSC’s position and the scrutiny it subsequently faced can be read HERE.
Two members of P&R’s Strategic Leadership Team learnt about the potential increase in cost in November and December. The Policy and Resources Committee were briefed on 13 February. The time delay between officers finding out and the Committee being told has been explained thus:
“Senior States of Guernsey staff offered advice and support to colleagues in HSC who were seeking to establish whether the estimated increases were accurate, and also the circumstances that led to former members of the Programme Management team not sharing the information more widely at an earlier stage.
“When confirmation of the accuracy of the estimates was received, formal briefings to senior States of Guernsey staff took place on 30th January 2024.
“It is important to emphasise that throughout this period the advice and approach of all senior States of Guernsey staff was that the Assembly had agreed a cost envelope and the programme must work within it, or otherwise return to the Assembly to request further funds with a supporting rationale and explanation.”
The President of P&R, Deputy Lyndon Trott, has published the following statement alongside an overview of events:
“We have provided this detailed overview [published in full below] to show that undoubtedly there are lessons to be learned, and I know the Head of the Public Service is ensuring they are. However we have nothing to hide and are committed to being open with the community as well as the political body.
“Our Committee is satisfied that officers currently employed by the States of Guernsey and advising us and other Committees 4 acted with the best intentions as they worked to establish the accuracy of the new estimates, and to ensure that solutions to any cost increases could be found.
“I have experience working with our senior civil servants over more than two decades, in my previous roles as Treasury Minister, Chief Minister and Deputy Chief Minister. I also have the experience of being a deputy on the ‘back-benches’.
“Having recently taken on the role of Chief Minister again it is my conviction and my personal experience that senior civil servants work at all times to provide the best possible professional and impartial advice.
“It is justifiable for Members of the States and the community to want to ensure spending remains under control on all projects and also that good governance is actively engaged.
“However it is not justifiable for some Members of the States to publicly undermine the public sector with accusations of cover-ups and conspiracies without first establishing the facts, when it was those officers who identified the problem in the first place, brought it to attention of States Members and are now seeking to resolve it.”
P&R's Overview
• There is no current over-spend on the project, officers continue to work to bring the project back into the provisional allocation, and any request to increase funding would be submitted with full transparency to the States Assembly;
• Former project officers were advised of potential cost increases in February 2023; • Current HSC officers learned of the potential cost increases on 30th and 31st October 2023 which were presented as cost estimates;
• Urgent work was immediately undertaken also involving a third party specialist contractor to confirm whether the projected increase was accurate;
• An interim update pending the conclusion of the detailed work was provided to the Committee for Health & Social Care in December 2023.
• A small number of senior States of Guernsey staff received preliminary briefings of the potential cost increases, prior to the completion of further work to establish the accuracy of them, in November and December.
• That further detailed work between the specialist contractor and officers was concluded in mid-January and at a meeting with the specialist contractor on 16th January it was agreed that value engineering would be required to remain within the original cost envelope.
• On 30 January 2024 this outcome, following the detailed work to establish the accuracy of the estimated cost increases, was formally communicated to senior officers who also advise the Policy & Resources Committee;
• Two political Members of the Policy & Resources Committee were advised on 12 February and the full Committee, including the President were informed on 13 February;
• The Policy & Resources Committee and the Head of the Public Service strongly and unequivocally refute any allegations of misconduct and ‘cover-up’ but also confirm that any delays in communication were not appropriate, have been acknowledged and will not be repeated.
P&R staff knew about hospital cost concerns for months
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