Ministers should intervene quickly if there is a fundamental breakdown in the working relationship of senior department managers.

That’s the view of the Council of Ministers which has accepted the recommendations of a damning Public Accounts Committee report into the costly mismanagement of the Signature TT sponsorship deal to be debated at next week’s Tynwald sitting.

The lucrative deal with Signature, which aimed at transforming the TT into a more viable commercial prospect, saw the company paid a basic £70,000 a year, plus £15,000 in expenses and 22.5 per cent in commission.

But the report found a series of basic errors exacerbated the financial risks of the deal which left government with a £750,000 liability – on top of the £900,000 the company had already been paid – as it couldn’t afford to break the contract.

The PAC inquiry uncovered evidence of a ‘fundamental breakdown’ in the relationship between the DTL’s former chief executive Carol Glover and director of tourism Geoff Le Page which it said directly affected the management and control of the project.

The report concludes that Mrs Glover – ‘although well intentioned’ – did not follow proper procedures in appointing Signature as TT marketing consultants.

As a result, processes and procedures were over-ridden, there was a lack of control over the management of this and possibly other contracts – and communication broke down within the department and with external suppliers.

In one of five recommendations, the PAC suggested that Ministers and senior civil servants should be made aware of the risks presented by such fundamental relationship breakdowns in the working environment and that such matters are reported to the Chief Secretary for immediate investigation.

CoMin in its response accepted all the recommendations. It said it will request Ministers and chairmen of statutory boards to ‘intervene pro-actively’ in such cases.


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