Thursday 11 February 2016
The Chief Executive and Chief Minister have today published the terms of reference for the external review of the Public Services Department's settlement of the PFOS case in February 2016.
PWC has been appointed as the external reviewers. The aim is for the review to be completed by the end of March 2016.
Deputy Jonathan Le Tocq, Chief Minister said:
"The Policy Council has agreed the terms of reference of the review with the Chief Executive, and is co-commissioning the review. This means the terms of reference covers all processes in terms of officer support and duties, internal and external legal advice, risk management and reporting, and the political governance of those matters. This is important as it will ensure that the Public Accounts Committee or Scrutiny can also pick up any relevant recommendations for further work as they see fit."
Paul Whitfield, Chief Executive Officer of the States of Guernsey said:
"It is important to co-commission this review in order to look at all aspects of what led to the settlement of the PFOS court case, and at what can be done to strengthen decision-making and governance in the future in order to assure our community about the way that public money is spent. Our aim is for this review to be undertaken, completed and published by the end of March. This means it will be timely, but the terms of reference also demonstrate it will be focused. Co-commissioning it in this way with the Policy Council means that only a single external review needs to be done, avoiding duplication and controlling costs."
Terms of reference of the review
1. Accountability and authorisation
How did accountability, authorisation and reporting lines operate for civil servants during this process?
2. Decision-making
How did the relationship between legal advice and civil servant decision-making operate during this process?
How was the strength of evidence evaluated and reviewed?
How was the process managed in terms of go-no go decisions, particularly in relation to the decision not to accept an early settlement?
3. Risk management and reporting
How was risk in relation to cost, liability and prospects of success managed and mitigated?
What was the nature of stakeholder reporting during this process, within PSD and externally to the CEMT, to the Policy Council and to the Treasury & Resources Board?
4. Financial governance
How did responsibility for authorising expenditure operate and what limits are in place?
How did monitoring and control occur and how was oversight of expenditure exercised?
5. Improvements and actions
What steps can be taken to improve the four areas above, ie accountability and authorisation, decision-making, risk management and reporting, and financial governance?
What steps can be taken to ensure that the formal lines of governance are fully cognisant of all legal considerations and advice?
The review should take no more than 20 working days.
The output will be a formal, evidence-based report covering points 1-5 above.
The reviewers will report to Paul Whitfield, Chief Executive, States of Guernsey, and Deputy Jonathan Le Tocq, Chief Minister and Chairman of the Policy Council.
-ENDS-
