Monday, November 18, 2013

Procedure


Although maladministration is not defined in the Parliamentary Commissioner Act 1967, it has been taken to refer to an error in the way that a decision was reached, rather than an error in the actual decision itself. Indeed, s 12 of the Parliamentary Commissioner Act 1967 expressly precludes the PCA from questioning the merits of particular decisions taken without maladministration. Maladministration, therefore, can be seen to refer to the procedure used to reach a result, rather than the result itself. In an illuminating and much quoted speech introducing the Act, Richard Crossman, then leader of the House of Commons, gave an indicative, if non-definitive, list of what might be included within the term ‘maladministration’. The list included the following: bias; neglect; inattention; delay; incompetence; ineptitude; perversity; turpitude; and arbitrariness

            mbers of the public do not have the right to complain directly to the PCA; they must channel any such complaint through a Member of Parliament Complainants do not have to provide precise details of any maladministration; they simply have to indicate the difficulties they have experienced as a result of dealing with an agency of central government. It is the function of the PCA to discover  whether the problem arose as a result of maladministration. There is a 12 month time limit for raising complaints, but the PCA has discretion to ignore this.
           
The powers of the PCA to investigate complaints are similar to those of a High Court judge; thus, they may require the attendance of witnesses and the production of documents, and wilful obstruction of the investigation is treated as contempt of court.
          
  On conclusion of an investigation, the PCA submits reports to the MP who raised the complaint and to the principal of the government office which was subject to the investigation. The ombudsman has no enforcement powers but, if his recommendations are ignored and existing practices involving maladministration are not altered, he may submit a further report to both Houses of Parliament in order to highlight the continued bad practice. The assumption is that, on the submission of such a report, MPs will exert pressure on the appropriate minister of State to ensure that any necessary changes in procedure are made.

            
Annual reports are laid before Parliament and a Parliamentary Select Committee exists to oversee the operation of the PCA. The operation of the PCA is subject to judicial review however, the Parliamentary Commissioner for Public Standards, established after the Nolan Inquiry into ‘cash for questions’ in Parliament, is not subject to judicial review Barlow Clowes The first of these concerned the Barlow Clowes group of companies. In 1988, Peter Clowes and three others were arrested and charged with offences in connection with the Prevention of Fraud Act 1958 and theft. The prosecution alleged that there had been an investment fraud of over £115 million. The main allegation was that members of the public were induced to deposit their moneys in the belief that they would be invested in gilt-edged securities, but that only £1.9 million was in fact so invested. The rest was misappropriated by the defendants. Clowes alone faced charges of theft totalling some £62 million. The PCA received hundreds of complaints from investors who had lost their money in relation to the Barlow Clowes affair, all alleging maladministration on the part of the Department of Trade and Industry which had responsibility for licensing such investment companies. The PCA made five findings of maladministration against the DTI and recommended that compensation should be paid to those who had suffered as a result of it. Surprisingly, the Government initially denied any responsibility for providing compensation. Subsequently, after the PCA had expressed his regret at the Government’s initial stance, the latter agreed to pay the recommended compensation payments, amounting to £150 million, but with the rider that it still accepted no legal liability

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