Greensill: Cronyism watchdog says system need urgent reform

The head of the watchdog that advises politicians and top civil servants when they take up jobs in the private sector has said the system needs urgent reform.

Giving evidence to MPs, Tory peer Lord Pickles said there did not appear to have been "any boundaries at all".

It comes after news a top civil servant worked for Greensill Capital while still on the government payroll.

It is at the centre of a lobbying row.

The government has announced a review of contacts between top officials and ministers, including former prime minister David Cameron, and the now failed finance firm.

Lord Pickles, a former cabinet minister, chairs the Advisory Committee on Business Appointments (Acoba) which advises former ministers and civil servants on outside employment.

His appearance before the public administration committee has been long planned but comes as a row is engulfing Westminster about former politicians and civil servants moving from government to business roles.

By political reporter Brian Wheeler

Former government ministers - and top civil servants - are never short of job offers, but what sort of work should they be allowed to do after leaving the corridors of power?

Lord Pickles' Acoba committee is meant to ensure that they don't use the insider knowledge and contacts they gained in government to enrich themselves when they leave.

The danger is that if they get too cosy with business it could lead to bias and corruption.

The Acoba committee has long been criticised for being toothless - and Eric Pickles appears to agree. As things stand, he is neither a watchdog, or a regulator, he says.

His committee is there to offer advice, which is not always sought.

He appears determined to change this.

On Tuesday it emerged that a former government procurement officer, Bill Crothers, joined Greensill as an adviser in 2015 whilst still working as a civil servant after getting the go-ahead from the Cabinet Office.

Lord Pickles wrote to the top civil servant there, Alex Chisholm, expressing concern about a lack of transparency.

Answering questions from MPs about the matter he said he had discovered that Mr Crothers had not had to seek his committee's advice when moving to take up a position with Greensill Capital.

He added: "It appears he was not isolated in that position.

"I think it also highlights a number of anomalies within the system that require I think immediate address".

He said "simple steps could be taken now" to tighten up the system and that it was necessary to "look carefully at contracts of employment".

Prime Minister Boris Johnson told MPs on Wednesday it was "not clear" that "boundaries have been properly understood".