(APG0041)

Written supplementary evidence submitted by Transparency International UK


 

Culture of impunity regarding the MPs Code of Conduct

 

At the oral evidence session, the Committee asked for the reasoning behind Transparency International UK’s (TI-UK) view that there is a culture of impunity regarding the MPs code of conduct. Our reasoning was based on the belief that in many cases sanctions for breaches of the rules were relatively weak, such as an apology, or were being managed in a way that had little or no impact. For example, when three MPs were recently suspended from Parliament for a day for seeking to influence legal proceedings against a former MP, their suspension took place on a Friday when there is very little parliamentary business and many MPs would be spending the day in their constituencies anyway[1]. This sends a message to voters that even where MPs are found guilty of breaching the code there are no real consequences.  Whilst recall is the ultimate sanction that MPs can face, in reality this only applies to MPs in marginal seats. This means that MPs in different parts of the country could behave in the same way but face very different consequences.

 

The culture of impunity is also a result of repeated potential breaches of the Ministerial Code that have not been investigated. The allegations that Jenrick had intervened in the planning decision regarding Westferry Printworks on behalf of a party donor were very serious but there was no investigation or sanction. This creates the perception that this behaviour is believed be to be acceptable and damaged trust in our democracy. Whilst we appreciate that this committee has no role in overseeing the Ministerial Code, we believe that this has changed the culture within Parliament where rule breeches are no longer considered as serious as they once were. This can be seen in cases where Ministers have been found to have mislead Parliament but there are no consequences. What was once considered a matter for resignation is now largely ignored.

Additional Research All Party Parliamentary Groups (APPGs)

In oral evidence TI-UK was pushed to provide further examples of APPGs being used by foreign governments or for lobbying purposes. As the Committee is aware, the data on APPGs is very difficult to scrutinise and analyse. Below we have included additional examples of where we have found examples of companies using APPGs and funding foreign trips in ways that could constitute lobbying.

 

Whilst we recognise there can be benefits to these trips, they do raise potential conflicts of interests where companies are bidding for contracts or benefit from trade deals that may arise from closer relationships with Parliamentarians. This is a particular concern when MPs are going on regular trips funded by the same organisations as this suggests there is a long term financial relationship. One of the best examples of this is the China APPG which as well as corporate sponsors has been used by the Chinese Government to fund trips for MPs. We have included examples where MPs have accepted multiple trips over a period of years to demonstrate the pattern of behaviour and the way relationships are built rather than accuse individuals of wrongdoing. One example not linked to APPGs but which demonstrates the point about potential conflicts of interest is the two MPs who went on trips to the Cayman Islands worth nearly £17,000 and funded by the Cayman Islands Government. The MPs both then advocated for the Cayman Islands against the UK Government’s proposals for greater transparency to prevent money laundering[2].

All Party Parliamentary Country Groups (APPGs)

There are 36[3] APPG country groups which have an external ‘Public Enquiry Point’, ‘Secretariat’ or funder of which 23 are a civil society/campaign group or think tank, six are a country group funded by private business, five are unknown and two are sponsored by a foreign government. Of the 36 APPG groups, 21 either explicitly state they undertake lobbying of parliamentarians on their registered website or they state they provide networking opportunities with ‘decision makers’. There are also four APPGs which have a registered lobbyists or a public affairs consultant as their registered secretariat or public enquiry point[4].

APPG country groups with links to private companies.

 

China

 

The All-Party Parliamentary China Group (APPCG), is one of the larger country, APPGs, with 23 members.

 

MPs from APPCG have accepted at least £70,000 worth of trips to mainland China since 2010 and in the last five years MPs have accepted at least £11,500 worth of trips. These figures do not include trips to Taiwan and Hong Kong.

 

The most common funder, accounting for almost £30,000 worth of trips is the APPG on China. The current funders of the APPG, according to the website, are HSBC UK, ARUP, Swire and the City of London. The ‘benefits’ of being a sponsor of the group are listed as

 

“attending or designing APPG event, providing input into the organisation and content of APPCG events, contributing speakers at events, briefing members on topics of key interest and hosting high-level delegations from China.”

 

The Chinese Party and Government is also another common funder of overseas trips, with the International Liaison Department of the Chinese Communist Party recently part funding a trip for one. One MP took six trips directly funded by the APPG and another three that were funded by a combination of companies and the International Department of the Central Committee of the Communist Party from 2013 2018. While another went on 4 trips from 2001 to 2018 the first four of which were funded by the Chinese Government and the final one was funded by the APPG. A further MP took five trips from 2010-2012, two funded directly by the APPG and three by a combination of companies and the Chinese Government. This included two trips in 2010 for a total value of over £13,000[5].

 

Egypt

The Secretariat of the APPG for Egypt is ‘Samir Takla’, who could be the ex-managing director of Takla Trading which operates in Middle East and African countries. There is one MP who has accepted funded trips to Egypt, with a total value of £1,999.

Italy

The secretariat of the APPG Italy is the consultant lobbying company, SEC Newgate. The APPG also receives funding from private companies Tratos and ERG. Tratos is an electrical and fibre optic manufacturer and ERG is an energy company.

Two MPs have accepted funded trips to Italy, total accepted amount: £2,400. One MP’s local party has also been funded by Tratos.

Japan

The APPG on Japan is sponsored by several private companies, these are:

Bank of Japan, Chugai Pharma Europe Ltd, Eisai Europe Ltd, Hitachi Europe Ltd, Japan Airlines Co Ltd, JR-Railways, Kawasaki Heavy Industries, Kawasaki Precision Machinery (UK) Ltd, Keechdesign UK Ltd, Lewis Townsend LLP, Mitsui & Co. Europe plc, Mitsui OSK Bulk Shipping (Europe) Ltd, Mitutoyo (UK) Ltd, Nihonbo Ltd, Nomura International plc, Srixon Sports Europe Ltd, Tokyo Electric Power Inc, Toyota Motor Corp.

 

The APPG suggests on its website that the APPG facilitates lobbying opportunities for sponsors:

 

“The British-Japanese Parliamentary Group hosts a programme of formal and informal lunches and receptions throughout the year. These provide the Group's members with the opportunity to meet and network over specific themes such as technology, arts, business and culture….. The Group's events take place in the beautiful, historic dining rooms and reception rooms of the Palace of Westminster.”

 

Sponsors seem to be in attendance as its stated that “In addition to the annual reception and lunches that the Group arranges for sponsors throughout the year.”

Additionally, three MPs have accepted funded trips to Japan, totalling at least £8,700. Two of these trips have been funded by 21st Century Group, which is “funded by UK business with interests in Japan”.

Kurdistan Region in Iraq

The ‘Public Enquiry Point’ of the APPG on the Kurdistan region in Iraq is, according to official records, ‘Gary Kent’ who is funded by the ‘Kar Group’ to act as the APPG’s secretariat. The Kar Group is a private company with specialities in construction, engineering and property in the Middle East region.

 

Seven parliamentarians have accepted funded trips to the Kurdistan region from 2011 to present. Total amount accepted by parliamentarians for funded trips : £57,766. The trips are funded by several private companies: Sardar Group, UB Holdings, Nokan Group, Kar Group, Qaiwan Group. The majority have wide industry interests such as construction, energy and oil, food and consumer and healthcare. Some of the trips are also funded by the Kurdistan Regional Government and regional Chambers of Commerce.

 

MPs who are members of the APPG have also made several interventions in Parliament concerning Kurdistan. For example, one frequently submits EDMs on Kurdistan and has submitted at least 19 written questions while another Jack who has undertaken the greatest number of funded trips, has submitted at least 11 written questions.

 

University of Bath research on pharmaceutical companies and APPGs

Research by the University of Bath revealed that sixteen of the 146 health-related APPGs in Parliament received over a £1 million in payments from 35 pharmaceutical companies between 2012-2018[6]. Two APPGs - the APPG for Health and the APPG for Cancer - received more than half of the total funding (£414,921 and £252,557 respectively) provided by pharmaceutical companies. The research also found that patient organisations, which had also received pharmaceutical industry funding, were frequently providing support for APPG’s secretariat function (304 payments worth £986,055). This raises serious questions about potential conflicts of interests and the influence pharmaceutical companies are exerting on health policy, potentially at the expenses of less resourced groups. As TI-UK has previously argued transparency in APPGs is necessary but not sufficient, to address concerns about access and influence in UK politics. APPGs are one way in which companies and foreign governments seek to influence parliamentarians but they are not the only one. Reforms of APPGs should be considered alongside the need for a comprehensive lobbying register that includes both in house and consultant lobbying.

11 January 2022


[1] https://www.bbc.co.uk/news/uk-politics-58504740

[2] https://www.buzzfeed.com/alexwickham/graham-brady-michael-fallon-free-trip-cayman-islands

[3] Afghanistan, Africa, Angola, Armenia, Bosnia and Herzegovina, Burma, CANZUK (Canada, Australia , New Zealand and the UK), Chagos, Chile, China, Commonwealth, Cuba, Cyprus, Egypt, Eritrea, Falkland Island, France, Greenland, Hong Kong, Ireland and the Irish in Britain, Italy, Jamaica, Japan, Jordan, Kurdistan Region in Iraq, Latin America, Libya, Malawi, Nigeria, Palestine, Portugal, Iraq, Romania, Sudan & South Sudan, Western Sahara, Tibet.

[4] Afghanistan, CANZUK, Hong Kong, Italy

[5] This data was collated from MPs registers of financial  interest

[6] https://journals.plos.org/plosone/article?id=10.1371/journal.pone.0252551