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BBC director payout ?cavalier? use of public money

The severance package handed to former BBC director General George Entwhistle has been called a “cavalier use of public money.”

A report from the Public Accounts Committee, chaired by Margaret Hodge MP, said public servants should not be rewarded for failure.

The inquiry follows Mr Entwhistle’s departure from the BBC after just 54 days in the job as a result of the Jimmy Savile newsnight investigation furore.

Mrs Hodge said: “In order to speed his departure, he was paid £450,000, twice what he was contractually entitled to, and then, if that were not bad enough, 12 months’ private medical cover and a contribution to the cost of his legal fees and public relations advice were added to the package.

“This cavalier use of public money is out of line with public expectations and what is considered acceptable elsewhere in the public sector.

“The Comptroller and Auditor General offered to carry out an immediate and independent audit examination of the package, in time to inform the deliberations of this Committee. The BBC Trust refused to take that offer up.

“This inhibited Parliament’s ability to hold the Trust to account for its use of public money. The BBC’s generosity with severance packages goes beyond the one awarded to George Entwistle. Since 2010, over £4 million in total has been made in severance payments to 10 other departing senior managers. The BBC is also providing 422 senior managers with private medical cover as part of their remuneration packages.”

The Committee’s inquiry also looked at payouts to other senior managers, which were said total over £4m. It was also highlighted that 422 senior BBC managers received private medical cover worth £667,489 as part of their remuneration in 2012.

This was posted in Bdaily's Members' News section by Tom Keighley .