Commission meeting with Rt Hon Margaret Hodge MP.
The Commission met with Rt Hon Margaret Hodge MP. Margaret Hodge has been leader of Islington Council, a minister and chair of the Public Accounts Committee.
Margaret Hodge said that the UK was now a jurisdiction of choice for dirty money and had slipped down the league table of Corruption Perception Index. Recent governments have undermined both systems and moral culture and this is continuing today.
She said that the independent judiciary was being undermined and gave the examples of the weakening of judicial review and the recent challenges to the Supreme Court, in particular following the recent judgment on sending asylum seekers to Rwanda.
The independent and expert civil service was being undermined and the role of political special advisors has been increased. The sacking of permanent secretaries had weakened the civil service.
The appointment of non-executive directors to public bodies was being used to spy for politicians and undermine the independence of these institutions. They currently do not have to go through a proper public appointments system.
The power of parliament is being undermined in favour of an overweening executive through the increasing use of secondary legislation, ministers ignoring committees and announcing new policies in the press and not to parliament.
The independence of the press is being undermined by the use of SLAPPS (strategic lawsuits against public participation) to stop people revealing the malign influence of power and corrupt money.
She was particularly concerned about the influence of tens of millions of Russian money with the Conservative Party but raised some concern about Chinese money being invested in the Labour Party. This gives access, influence and can secure lucrative contracts. Russian money is being invested in influence through shell companies and extended families, both of which could be dealt with and prevented through tougher rules and due diligence.
The influence of the big four accountancy firms fosters the revolving door with former politicians and is unhealthy. They have facilitated getting money out of Russia.
This all corrupts public policy making and is harming democracy.
Margaret Hodge suggested four pillars that we need to get things right.
1. Transparency
2. Smart regulation
3. Proper enforcement
4. Accountability to parliament and the public
Political parties should carry out a health check to make sure they are not accepting laundered or dirty money. It appears that the Labour Party has rejected some £5million in donations that was known to come from suspected corrupt sources.
The Commission is planning a further evidence session in December. A briefing based on submissions from expert bodies and individuals and the evidence sessions will be published in February 2024.