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Tony Caplin resigns as quango chairman | Tony Caplin resigns as quango chairman |
(about 3 hours later) | |
A businessman appointed by the prime minister to head a quango managing public funds has resigned after it emerged he had been declared bankrupt. | A businessman appointed by the prime minister to head a quango managing public funds has resigned after it emerged he had been declared bankrupt. |
Tony Caplin has resigned as chairman of the Public Works Loan Board (PWLB). | Tony Caplin has resigned as chairman of the Public Works Loan Board (PWLB). |
The organisation is responsible for multi-million pound loans to local councils for infrastructure projects. | The organisation is responsible for multi-million pound loans to local councils for infrastructure projects. |
A Conservative spokesman said Mr Caplin "should have declared he was bankrupt", and Labour described his appointment as "astonishing". | A Conservative spokesman said Mr Caplin "should have declared he was bankrupt", and Labour described his appointment as "astonishing". |
The Mail on Sunday reported that Mr Caplin had been made bankrupt in 2012. | The Mail on Sunday reported that Mr Caplin had been made bankrupt in 2012. |
'No party role' | 'No party role' |
Whitehall rules require anyone serving on a public body who is declared bankrupt to inform the relevant minister immediately. | Whitehall rules require anyone serving on a public body who is declared bankrupt to inform the relevant minister immediately. |
Set out in a guide to government departments making and managing public appointments, the rules state: "Any publicly appointed person who becomes bankrupt should immediately notify the chair of the body, the person who appointed them or the sponsoring department. | |
"The sponsoring department should then examine the terms and conditions of the appointee and whether there is a mandatory or discretionary statutory bar on remaining in office." | |
A Conservative Party spokesman insisted Mr Caplin had no role in the Conservative Party, nor was he contributing to the manifesto. | |
"He was appointed to a number of public bodies by the previous government," he said. | |
"He was re-appointed to the PWLB by the prime minister. He should have declared he was bankrupt. | "He was re-appointed to the PWLB by the prime minister. He should have declared he was bankrupt. |
"This has been pointed out to him, and as a result he has resigned." | "This has been pointed out to him, and as a result he has resigned." |
Prime Minister David Cameron has been accused of a "serious error of judgement" over the matter. | |
Shadow chief secretary to the Treasury Chris Leslie said the government had questions to answer about what it knew, and when. | |
"The Treasury were pursuing Mr Caplin for hundreds of thousands of pounds," Mr Leslie said. | |
"He was in charge of billions of lending by the Treasury and he's clearly at the centre of a long web of connections across the Conservative Party. | |
"He was their chief operating officer. I think we need to know now who knew what and when - and we'll be pressing No 10 to say so." | |
'Serious questions' | 'Serious questions' |
BBC political correspondent Louise Stewart said that Mr Caplin "had close links at the highest levels of the Conservative Party". | |
She said that he had helped the party write its manifesto in 2005 and when he was made bankrupt he had debts of £3m. | She said that he had helped the party write its manifesto in 2005 and when he was made bankrupt he had debts of £3m. |
She said "anyone in charge of a body like that, particularly one which deals with huge sums of money - £60bn in public loans - needs to divulge their financial situation" if found bankrupt. | |
Mr Caplin was appointed to the PWLB - which originated in 1793 - by the Labour government in 2003. | |
He was then reappointed to the board and made chairman by Mr Cameron 10 years later. | |
According to the PWLB website, Mr Caplin's appointment had been due to end in 2015. | According to the PWLB website, Mr Caplin's appointment had been due to end in 2015. |
The former Conservative Party chief operating officer has also served on a number of public bodies, including the North West London Hospitals NHS Trust, where he was chairman until January last year. | |
Mr Caplin, who is a former chairman of stockbrokers Panmure Gordon, is also reported to have left his post on the Medical Research Council. | |
Senior Labour MP Margaret Hodge, who chairs the Commons Public Accounts Committee, told The Mail on Sunday the revelations raised "serious questions" that should be investigated. | |