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Serious Fraud Office payments to ex-CEO 'irregular' Serious Fraud Office payments to ex-CEO 'irregular'
(35 minutes later)
Pension and severance payments of £412,000 made to the former chief executive of the Serious Fraud Office have been ruled as "irregular" by the National Audit Office.Pension and severance payments of £412,000 made to the former chief executive of the Serious Fraud Office have been ruled as "irregular" by the National Audit Office.
It said the payments made to Phillippa Williamson were "made without proper authorisation".It said the payments made to Phillippa Williamson were "made without proper authorisation".
As a result, the National Audit Office said it was "qualifying" the SFO's annual accounts for 2011-12. As a result, the National Audit Office (NAO) said it was "qualifying" the SFO's annual accounts for 2011-12.
Ms Williamson took voluntary redundancy earlier this year. Ms Williamson took voluntary redundancy in April.
This means the NAO did not approve the accounts as being spent in the way the money was intended by Parliament. "Qualifying" accounts means the NAO did not approve the accounts as being spent in the way the money was intended by Parliament.
The head of the NAO, Amyas Morse, said: "By failing to seek approval from the Cabinet Office and the Treasury, the Serious Fraud Office entered into an agreement which forced it to make irregular payments.The head of the NAO, Amyas Morse, said: "By failing to seek approval from the Cabinet Office and the Treasury, the Serious Fraud Office entered into an agreement which forced it to make irregular payments.
"While positive steps have been taken by the incoming director, I have qualified the organisation's accounts.""While positive steps have been taken by the incoming director, I have qualified the organisation's accounts."
'Astonished'
The NAO said there was no evidence that "due process" was followed when Ms Williamson instigated voluntary redundancy last April, such as determining whether any alternative position had been sought.
The SFO should have gained approval from the Cabinet Office for a payment of £407,000 to the company which administers the Civil Service pension scheme, but the NAO said there was no evidence that this happened.
There was also no evidence that approval was sought from the Treasury for a "special severance payment" of £15,000 which she received as it was "in excess of contractual amounts".
Her replacement, David Green, sought legal advice upon taking office which confirmed that her agreement with the SFO was legally binding.
He commissioned an independent review into the matter and took steps to ensure exit packages were appropriately reviewed in future.
The chairman of the Commons Public Accounts Committee, Margaret Hodge, said she was "astonished" that the SFO had agreed to the severance payment to Ms Williamson.
"The SFO showed a total disregard for taxpayers' money when they wrote out a five-figure cheque to the CEO and failed to provide valid justification for the payment. The SFO also ignored Cabinet Office rules when signing off £407,000-worth of pension entitlements.
"My committee will want to see an immediate stop to unacceptable payments of this kind and for the SFO to ensure all future packages for those leaving the organisation are properly approved."