A review of events leading up to £300,000 of public money being spent on legal work, done by a law firm owned by a Guernsey Deputy, has found the Public Trustee who authorised that work, was acting within her powers.
The review states "the function and powers of the Public Trustee are governed by legislation" and she "followed existing custom and practice throughout, as the finance/accounting team provided the administrative support to process financial transactions on her behalf".
Concerns were raised by the Committee for Economic Development when it became apparent the money had been paid to the law firm, of which the-then Economic Development President was a partner. Deputy Peter Ferbrache stood down from his committee role over the situation, saying he had not done anything wrong, before later writing a letter criticising the States of Guernsey while saying the island will never encourage business men and women to political life if they risk facing unwarranted public criticism.
The review, released today, says the appointment of Ferbrache & Farrell was "solely a matter for the Public Trustee under the Law", and that there is "no evidence of a breach by the former President of the CfED of the Code of Conduct for Members of the States of Deliberation".
The Committee for Economic Development says it will now examine the law and governance relating to the Office of the Public Trustee following this special review, which was undertaken by the States of Guernsey’s Internal Audit Unit.
Deputy Charles Parkinson was elected President of the Committee for Economic Development following Deputy Ferbrache's resignation. Deputy Parkinson said this review proves a wider review of the work of the Office of the Public Trustee is now needed:
"In calling for the prompt review of the circumstances surrounding this case, the Committee was seeking to establish in clear factual terms all actions taken by the various parties involved. This is about good governance and, as a result of the issues highlighted by the special review, it is clear that there now needs to be a review of the governance of the Office of the Public Trustee. The Committee has directed that this review will be carried out immediately".
The review and the response can be read in full here.
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