Janet Entwistle, the chief executive of Peverel, was this afternoon sent a letter from Sir Peter Bottomley demanding higher compensation to sites cheated in the Cirrus cartel, or to accept independent binding mediation.
The letter is backed by Ed Davey, Energy Secretary and LibDem MP for Surbiton and Kingston, and Jim Fitzpatrick, MP for Limehouse and Poplar.
The letter is public and has been circulated to all media.
Tomorrow the Guardian is giving extensive coverage to the scandal.
Related posts:
Janet Entwistle says no current Peverel staff ‘linked’ to Cirrus scam
The Oldie reports Peverel / Cirrus price-fixing scandal
No change over Cirrus retirement scam, says Entwistle, although Peverel leaves an open goal for compo claims
Janet Entwistle to Bottomley: £100,000 ‘goodwill’ payment over Cirrus scam stays and she welcomes meeting with MPs and the Campaign against Residential Leasehold Exploitation
Guardian covers more fall out from Peverel’s price-fixing scam with Cirrus Communications
Peverel cheated pensioners in £1.4 million tenders at 65 sites, says OFT
Following the very welcome intervention from the MP’s it is probable that Miss Entwistle will increase the “Goodwill Payment”.
Even if a financial settlement is reached to the satisfaction of both parties, serious issues remain.
First, if an increased offer is made, why was such a derisory offer initially made?
Second, resident service charges were used by Peverel for the price fixing. What protection is there for residents against another fraud against the service charge funds?
Third, The price fixing scandal was not noticed by Peverel’s auditors. Will Peverel now use another auditor?
Michael,
What about the developments that were pushed into replacing/updating when they were still OK. As we now know, up to 50% could have been added to the costs of each development which would mean that a total earned would be £1.4m times 10 which could have been £14 million in earning by Cirrus Communications/Glyn Jackson Communications and the others?
Glyn Jackson was I believe from Leeds and the last contractor to be part of the Price Fixing/Tender Rigging. They began their Price Fixing in 2009 and carried out 37 developments in that year?
The first development to be targeted for Price Fixing was Homeborough House, Hythe, Southampton.
They had like us a Warden Call System replaced/updated, I wonder if they had a Lightening Strike as we seemed to have had, in two separate months in June and July 2007.
Is it correct that Andy Davy is also from Leeds and he was in charge at Cirrus Communications Services Ltd during the 2005/09 period?
It is standard procedure in well-run companies to change the auditor to prevent too cosy or complacent relationships developing.
Peverel has made it a deliberate business policy to use an auditor who is de facto an internal auditor: in the office, down the hall, on an internal extension, and to given him lots of pages and a large rubber stamp. What proportion of his business is unrelated to Peverel? How independent is he then? Is the whole thing not window-dressing?
The failure of Peverel’s new management to address this situation shows that it is simply the same old wine in new bottles. Once again, nobody is fooled for a moment.
The auditor’s fees have been repaid on several occasions to date. Has the auditor actually refunded Peverel? And if he hasn’t what does that reveal about the relationship?
That the impression of independence is a sham?
Michael,
Yes indeed Auditors.
It is about time someone looked into the Peverel Auditors and asked some questions. They have been paid for passing what they must have known to be incorrect. They are regarded as a professional organisation with high standards or are they as now downgraded to the level of high street banks just out to make profits no matter how.
The answer lies in part that while we think business is a clear maker, wholesaler, retailer, or builder agent/freeholder and owner, but it isnt. Vertical integration and commercial arrangements are often lawful- just look at Amazon Starbucks and Fuel -energy and petrol- companies. All VT did was apply those principles to the business( and yes a lot more…). What is actionable is the unlawful and illegal practices, and we have to be clear which is which, not those that we don’t like. Those in the sector know that with larger contracts, contractors use the same gangs and sub contractors and very often they will divide up the main contractors work between themselves. This is not dissimilar to this situation and the trick will be proving the intent(etc) to defraud.
Expert advice on the specification and costs is likely to be easier to target and a reduction in service charge recoverable. It might in some cases, with the OFT report ,be a stong case for appointment of a manager – the freeholder is not to be trusted. Given recent moves, they are unlikely to oppose this, or agree to tender to a new firm.
AM
Cirrus Communications Services Ltd who with others, cheated pensioners out of possible Millions of Pounds??? Cirrus I believe are now known as CirrusUK and are still winning Tenders some where up North, where Glyn Jackson Communications were from, before going into Liquidation in September 2012.
The cost of the investigation by The OFT, Office of Fantasy Tendering, which has now risen to over £500,000, must be added to the total losses, we as Taxpayers and Residents will have paid.
We have been stung twice now, once by the Peverel Group and Sister company, Cirrus Communications and next by the OFT.
The impunity and no penalty received by Peverel Group is a third whammy that we have to endure as the very authorities who were responsible for the investigation has not even asked Peverel Group to contribute to the costs? so a fourth Whammy??
Surely our politician’s such as Sir Peter Bottomley, Andy Davey along with Jim Fitzpatrick will not be
ignored, will they????