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George Entwistle pay-off cavalier use of public money - MPs George Entwistle pay-off cavalier use of public money - MPs
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The pay-off to former BBC director general George Entwistle - who quit in the wake of the Jimmy Savile scandal - was a "cavalier" use of money, MPs say.The pay-off to former BBC director general George Entwistle - who quit in the wake of the Jimmy Savile scandal - was a "cavalier" use of money, MPs say.
The £450,000 paid to Mr Entwistle after just 54 days in the job was out of line with public expectation, the Commons Public Accounts Committee said.The £450,000 paid to Mr Entwistle after just 54 days in the job was out of line with public expectation, the Commons Public Accounts Committee said.
The BBC Trust said legal advice has been sought about reclaiming money, but added this was unlikely to happen.The BBC Trust said legal advice has been sought about reclaiming money, but added this was unlikely to happen.
On Wednesday the BBC was criticised for its handling of the Savile scandal.On Wednesday the BBC was criticised for its handling of the Savile scandal.
The Pollard Review found there was "chaos and confusion" at the corporation over a Newsnight report which was dropped in December 2011 - but concluded senior managers had not instigated a cover-up.The Pollard Review found there was "chaos and confusion" at the corporation over a Newsnight report which was dropped in December 2011 - but concluded senior managers had not instigated a cover-up.
The review dismissed claims the six-week Newsnight investigation was dropped to protect tribute programmes to the TV presenter and DJ, who died in October 2011, aged 84. The review dismissed claims the six-week Newsnight investigation was shelved to protect tribute programmes to the TV presenter and DJ, who died in October 2011, aged 84.
'Rewarded for failure''Rewarded for failure'
Mr Entwistle left last month with a pay-off worth £450,000 - double the amount specified in his contract - along with a year's health insurance and money for PR advice.Mr Entwistle left last month with a pay-off worth £450,000 - double the amount specified in his contract - along with a year's health insurance and money for PR advice.
In its report, the Public Accounts Committee said that was out of line with severance packages in the public sector, and was an "unacceptable use" of public money. In its report, the Public Accounts Committee said that was out of line with severance packages in the public sector.
Committee chairwoman Margaret Hodge said: "Public servants should not be rewarded for failure. But that was exactly what happened when the BBC Trust paid off the former director general, George Entwistle. Speaking to BBC Radio 4's Today programme, committee chairwoman Margaret Hodge said: "Public servants should not be rewarded for failure. But that was exactly what happened when the BBC Trust paid off the former director general, George Entwistle.
"In order to speed his departure, he was paid £450,000, twice what he was contractually entitled to, and then, if that were not bad enough, 12 months' private medical cover and a contribution to the cost of his legal fees and public relations advice were added to the package.
"This cavalier use of public money is out of line with public expectations and what is considered acceptable elsewhere in the public sector.""This cavalier use of public money is out of line with public expectations and what is considered acceptable elsewhere in the public sector."
Speaking on Radio 4's Today programme, Mrs Hodge said Mr Entwistle had received "a package of benefits that left us astounded". The committee also said it was "extremely concerned" that the BBC Trust rejected an offer for the National Audit Office (NAO) to examine payments made to Mr Entwistle.
The committee also said it was "extremely concerned" that the BBC Trust rejected an offer for the National Audit Office (NAO) to examine the payments made to Mr Entwistle.
"This inhibited Parliament's ability to hold the Trust to account for its use of public money," the report said."This inhibited Parliament's ability to hold the Trust to account for its use of public money," the report said.
MPs also criticised the benefits and severance packages for other senior staff at the corporation as "excessively generous" - including one of nearly £1m to the former deputy director general Mark Byford, who left last year. MPs also criticised the benefits and severance packages for other senior staff at the corporation as "excessively generous," including one of nearly £1m to former deputy director general Mark Byford, who left last year.
"Since 2010, over £4m in total has been made in severance payments to 10 other departing senior managers. The BBC is also providing 422 senior managers with private medical cover as part of their remuneration packages," said Mrs Hodge."Since 2010, over £4m in total has been made in severance payments to 10 other departing senior managers. The BBC is also providing 422 senior managers with private medical cover as part of their remuneration packages," said Mrs Hodge.
"We have asked the Comptroller and Auditor General to include in his 2013 programme of work on the BBC an examination of severance payments and benefits for senior managers.""We have asked the Comptroller and Auditor General to include in his 2013 programme of work on the BBC an examination of severance payments and benefits for senior managers."
BBC Trust chairman Chris Patten said the criticisms made by MPs were "unfair".BBC Trust chairman Chris Patten said the criticisms made by MPs were "unfair".
"I think the treatment we have had from them has been a bit shabby," he told Today, arguing that the committee had been sent a detailed account of the legal advice used to reach a decision regarding the former director general."I think the treatment we have had from them has been a bit shabby," he told Today, arguing that the committee had been sent a detailed account of the legal advice used to reach a decision regarding the former director general.
"I don't think they have been fair because they don't look at our legal arguments at all.""I don't think they have been fair because they don't look at our legal arguments at all."
And, where the pay-off was concerned, he said: "We've taken legal advice about whether we could actually take any money back. In order for us to do so we'd have to be able to argue that, on the basis of what Pollard says, we would have been justified in making a summary dismissal of the former director general and I doubt whether we would get the legal go-ahead for that.And, where the pay-off was concerned, he said: "We've taken legal advice about whether we could actually take any money back. In order for us to do so we'd have to be able to argue that, on the basis of what Pollard says, we would have been justified in making a summary dismissal of the former director general and I doubt whether we would get the legal go-ahead for that.
"But we do have to look at that and we have been looking at it.""But we do have to look at that and we have been looking at it."
A BBC Trust spokeswoman said: "Of course £450,000 is a very substantial sum, but the terms reached were the best available in the circumstances. As already explained to the Public Accounts Committee and the Culture, Media and Sport Select Committee, it is simply wrong to suggest the BBC Trust had a choice between a severance payment of £450,000 or half that level. A BBC Trust spokeswoman acknowledged £450,000 was a "very substantial sum", but insisted the terms reached were "the best available in the circumstances".
"Indeed, if we had faced a constructive dismissal situation it would have cost us more and could have been a messy and long drawn out process. It is also not the case that the Trust refused to take up the offer to review the package - on the contrary, we suggested a wider study of severance payments at the BBC, which the NAO will now undertake." She said it was "simply wrong" to suggest there had been an option to halve that amount, adding a constructive dismissal would have been costly, messy and drawn out.
Labour MP Barry Sheerman has called for Lord Patten to resign and he told the Commons he was shocked to hear the BBC Trust chairman describe the PAC report as "unfair and shabby". The Trust had suggested a wider study of severance payments at the BBC, which the NAO was to undertake, she added.
But chairman of the culture media and sport select committee, John Whittingdale, said that while he did not support a call for Lord Patten to go, there needed to be a "fundamental overhaul of the management structure at the BBC". 'Fundamental overhaul'
Meanwhile, Labour MP Barry Sheerman called for Lord Patten to resign, telling the Commons he was shocked to hear the BBC Trust chairman describe the PAC report as "unfair and shabby".
But chairman of the culture media and sport select committee, John Whittingdale, said he did not believe Lord Patten should go, and called for a "fundamental overhaul of the management structure at the BBC".
He added: "The BBC is bloated with too many managers, too little responsibility and having too much money being spent on administration."He added: "The BBC is bloated with too many managers, too little responsibility and having too much money being spent on administration."
'Basic checks' Prime Minister David Cameron's official spokesman said the corporation was "accountable to its licence fee-payers" and must "absolutely" be able to "justify the level of severance money" paid out. The BBC Trust, he said, must ensure this was "taken into account".
The findings of a href="http://www.bbc.co.uk/news/uk-20784534" >separate report into a Newsnight programme that led to Lord McAlpine, a former Conservative Party treasurer, being wrongly implicated in a child sex abuse scandal were released on Wednesday. On Wednesday, a report into a Newsnight programme that led to Tory peer Lord McAlpine being wrongly accused of child sex abuse found the BBC had failed to perform "basic journalistic checks".
The report found Newsnight failed to complete "basic journalistic checks" and there was confusion about who had the ultimate responsibility for "final editorial sign-off". In an interview with Newsnight, BBC acting director general Tim Davie defended the £2m cost of the separate Pollard review, saying: "It was right to spend that money because we had an allegation that was very fundamental to trust in the BBC."
The editor and deputy editor of the current affairs programme are to be replaced, it was announced after the report's release.
The separate Pollard Review, which cost £2m, involved the examination of 10,000 emails and detailed interviews with 19 individuals.
In an interview with Newsnight, BBC acting director general Tim Davie defended the cost of the review, saying: "It was right to spend that money because we had an allegation that was very fundamental to trust in the BBC."
He also defended the lack of sackings following the report, saying success was "not necessarily how many people I dismiss".
Another review led by Dame Janet Smith, looking at the culture and practices of the BBC during the years in which Savile worked there, is expected next year.