Geoffrey Robinson's Best Interests.

 

Formerly the Paymaster General  (May 1997 to December 1998). Resigned after unregistered loan scandal.

 

Robinson's failure to register a family trust worth £13 million. (20th January 1998). [top]
Geoffrey Robinson, the Paymaster General, was rebuked by the parliamentary standards watchdog over the way he had handled his links with an offshore trust.

The report from Sir Gordon Downey, the Parliamentary Commissioner for Standards, followed the row at the end of last year over the disclosure that Mr Robinson and his family were discretionary beneficiaries of the Orion Trust based in the tax haven of Guernsey.

As Paymaster General, Mr Robinson launched Government plans for new individual savings accounts, which propose a £50,000 lifetime limit on the amount savers can shelter from tax.

The trust owned 13 million shares in Mr Robinson's company TransTec and he was alleged to have suggested that it should also buy shares in Coventry City Football Club.

Mr Robinson told Sir Gordon that he had sought the "professional advice" of his accountants, who told him that no specific disclosure was required. This view was later supported by a legal opinion from Michael J Beloff, QC.

But Sir Gordon said it was, in his view, "a mistake" for Mr Robinson to rely on advice on registering his interests from professional advisers. MPs were specifically invited to seek advice from him. The standards committee agreed. It said: "If a member feels it necessary to seek professional advice on a matter of registration, it is clear that some doubt must exist."

 

The 2nd Investigation into the Paymaster General (15th July 1998). [top]
Geoffrey Robinson has been rebuked by a Commons inquiry for two offences and MPs on the Commons standards and privileges committee said the investigation's findings reflected "poorly" on his business skill.

The Paymaster General was cleared of the most damaging claims that he had not declared a £200,000 payment for his role as chairman of Hollis plc, a company owned by Robert Maxwell. Tories had accused him of deliberately concealing the payment, reported in the company accounts, because he was embarrassed by links to the discredited Maxwell. However, a report by Sir Gordon Downey, the parliamentary standards watchdog, accepted that the accounts were wrong and that Mr Robinson had never received the money.

The Paymaster General admitted failing to register a paid directorship in Swiss EDM/Agie UK between 1984 and 1987.  MPs also said Mr Robinson should also have registered his directorship in Transfer Technology Ltd/TransTec, between 1987 and 1990. Although he declared his 70 per cent stake in the company he did not list the directorship even though it was remunerated and earned him around £108,000 in those years.

The committee has now  found Geoffrey Robinson failed to register two remunerated directorships as required by the rules. The Prime Minister has also failed to live up to his words and has not sacked Mr Robinson, another example of the Prime Minister saying one thing while doing another."

Most MPs go their whole career without an investigation by Parliament's watchdogs - the Paymaster General is now on his second.

 

Robinson Resigns over Loan Scandal (December 1998). [top]

Peter Mandelson

Back to the Labour Exposed page.