The Institute failed to implement key elements of the 2002 commitments arising from the first investigation.
The “predominant involvement of Labour Party politicians in the Institute’s activities, compromised the Institute’s independence.”
“Due to the amount and nature of party political content in some of the Institute’s events and publications, the Commission concluded that the Institute’s work was not always as sufficiently balanced and neutral as required under charity law”
“The trustees allowed inappropriate party political comments which were made at events, to be reported word for word… without any commentary, editing, qualification or disclaimer in Institute publications and disseminated to a wider audience”
The language used by the Institute at times “constituted a party political statement inappropriate for the charity. This inevitably compromised the Institute’s independence and reputation”
Directly criticised the trustees, finding “evidence of unchallenged party political comments being made at Institute events by politicians and also party political comments made by or on behalf of the Institute… combined with the predominant involvement of Labour Party politicians in the Institute’s activity, compromised the Institute’s independence. Bearing in mind the previous engagement between the Commission and the trustees in 2001/02 on this matter, the Commission concluded that the trustees had not safeguarded or adequately supervised the risks posed to the independence and reputation of the Institute”
Found that “the trustees had allowed the Institute to become exposed to concerns that is supported Government policy and was involved in party political activity inappropriate for a charity” and that they were “not sufficiently engaged to ensure the proper supervision of the charity”. The trustees were lambasted throughout the report for failing in their statutory duties to oversee the workings of the charity.
Still had ongoing concerns “over the Institute’s frequency of use of 11 Downing Street and over the review and monitoring of the impartiality of its educational programmes”.
Found “a number of instances where the balance and neutrality of the Institute’s work were compromised by a party political association… Sufficient steps had not been taken to identify or manage the perception that the Institute was unacceptably linked to and supported the Labour Party or that it inappropriately promoted Government policy… it is understandable how the perception arose that the Institute was focussed on or was connected to the then Chancellor of the Exchequer”.
This is a good result and Guido feels totally vindicated in making his complaint. The Commission has formally found the Institute in breach of the laws on political neutrality – anyone interested now knows what really went on. The Institute has been forced to restructure, with an audit committee. It has also closed down the subsidiary company S.I. Events Limited, which was used to launder money from corporations seeking regulatory favours and to invoice the Treasury for seminars. A formal oversight structure was ordered to be put in place with tight controls and it has been told to appoint known Tory and LibDem supporters to the board. It is now on probation and must report back on the implementation of the changes as ordered in six months. The Commission will take a second look next year.
Guido doesn’t think we will be hearing any more speeches on how to beat Cameron and the LibDems at Smith Institute events in the future…