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Transport for London has launched an investigation into one of its senior managers amid allegations that hundreds of thousands of pounds of TfL money has been improperly funnelled to a company in which he had a close personal interest.
Phil Pavitt, TfL's chief information officer, is under investigation after substantial numbers of staff were recently recruited to his department through a firm called Results International plc.
Some of the new staff are paid in excess of £1,000 a day, allegedly far more than their market value. Results International collects a commission on their salaries.
According to its website, Results International specialises in training and is not a recruitment agency. It is based in Leamington Spa, Warwickshire, almost 100 miles from London. Several of those recruited also live in Leamington Spa or Coventry.
The Standard has established that Mr Pavitt, 46, was a non-executive director of Results International, but no longer holds the role. Until September this year, Companies House records show, he was director of another firm, F Cubed, which is based at Results International's offices.
Both Mr Pavitt's co-directors in F Cubed - Matthew Wright and Bharat Lakhani - have been employed on generous salaries in Mr Pavitt's department at TfL. Mr Wright is shown on Results International's website as a member of its management team. His partner, Melanie Wombwell, is the firm's managing director.
The man chosen by Mr Pavitt to be his chief of staff at TfL, Bill Morgan, is also understood to have worked for Results International.
"There is supposed to be quite a robust process by which staff and interims [temporary staff] are employed by TfL," said one TfL source. "The allegation is that that process was totally disregarded to get these people in. There is quite a lot of money at stake."
One senior TfL source described the allegations as "TfL's Lee Jasper affair". Mr Jasper, a senior aide to then Mayor, Ken Livingstone, was forced to resign earlier this year after a Standard investigation revealed large sums of public money had been paid to organisations controlled by him and his associates.
Mr Pavitt is described by TfL as a member of its "top-level structure". His department is responsible for TfL's entire IT operation, with a staff of 500 and a reported budget of £1billion.
Starting life as a debt collector for BT, Mr Pavitt rose swiftly to become IT director for NTL and Centrica before joining TfL last year. He was recently listed as one of Britain's top chief information officers.
The investigation, ordered by TfL's head of internal audit, Mary Hardy, has seen Mr Pavitt interviewed twice. However, it is understood that he has not been suspended.
Mr Pavitt, who lives in Benfleet, was unavailable for comment today. A friend said: "He believes this has been stirred up by people who are resistant to the changes he is trying to make inside TfL. He accepts the procedures [for recruitment] need to be tighter, but his view is that any failing was down to naivety rather than venality."
A TfL spokesman said: "We are already investigating this matter and will decide on the appropriate course of action once this work has been completed." Results International did not return calls.
Reader views (61)
I had the 'joy' of working for Pavitt at the then ntl - it was a complete joke - he was pumping heaps of cash for training and consultancy (read personal development) for a system that was never going to be delivered. I remember the time I saw him struggling to plug a mouse into a laptop prior to a presentation - need I say anymore???
- Anon, Far enough away from him, thankfully
Steve Townsend has now been made as the new TfL CIO now that pavitt is leaving to join HMRC.
- Tootsy, London
Not sure which planet SO from London is on if he/she thinks that contractors have the same benefits as permies.
Contractors are only allowed to work at TfL for 1 year then they are out.
They do not get paid for holidays.
They do not get paid if sick.
They do not get free Oyster cards.
They cannot claim travel expenses around London even on TfL business.
They do not get any training provided.
They are on a 5 day notice period with no severance or redundancy pay.
They are expected to work longer than contracted hours.
Contractors are on 40 hour weeks compared to 35 hours for permies.
Finally they have just had a 10% mandatory (accept it or leave TfL) pay cut when permies will get a pay rise this year.
These are the risks that contractors take and accept at TfL.
Yes I was a contractor at TfL but have now left before I was pushed.
- Steve, London, England
Lets see how many old TfL contractor faces turn up in HMRC after his feet are well under the table. I give it 4 months.....any takers?
- Cameron, London
6 months on and Phil is leaving TfL!! Resigned or was he pushed?! The damage is done and it's time to move on to cause another mess in another organisation!!
- Ld, Ealing
I think JS, Wilts. should remove her (no doubt contractual) rose tinted glasses and face the facts - namely that after just a year, contract staff at TfL have EXACTLY the same rights, terms and conditions as so called permies so where's her so called 'risk'?! In addition, there are many so called contract staff who have been at TfL (and other govt depts) for many years and who - for obvious, selfish reasons - make absolutely NO effort to transfer skills and/or knowledge to permanent staff...thus perpetuating the outsourcing scam! Don't believe me...? Do the research...
- So, London - UK
And this guy has just been appointed as the CIO at the Inland Revenue (HMRC). No doubt his mates will be turning up there next on fat contracts - what is the world coming to?!
- A Worried Tax Payer, Leeds, England
I was wondering if Tfl have ever bought any messaging platforms since Mr Pavitt join them? Specifically from Openwave? He's had this uncanny nack of by passing tendering processes to put Openwave in at NTL and OneTel. So it may be worth doing some investigations not just into Recruitment but also System tenders. Sorry but there's a common thread in most of these comments to not have some credence! Also who are these people who are trying to say Mr Pavitt shouldn't be blamed Etc.
- Anon, London
Interesting that Steve Townsend joined TfL in a Service Assurance role but told everyman and his dog at Dell that he was leaving to become Head of IM for LUL. Low and behold after a few weeks at TfL he was offered the role of Head of IM for LUL. Does he possess a crystal ball?
- Roosting Chicken, London
What has happened with this now ?
- Anon, London
Pavitt is now on gardening leave since the New Year. His iceberg is fast disappearing. Interesting, I guess he will be hunting his next client right now at tax payers expense.
- Value Adding Contractor, London
Anyone got any idea when the TfL enquiry reports as it seems to have gone quiet on this?
- Bobby, London
Perhaps the London Taxpayer, Middle East (contractor??? dead give-away you know) can explain some simple arithmetic. With a total work force of around 22 thousand in TfL how can the IT department require a 1 to 2 ratio of IT support to its clients, especially when you consider that over 13 thousand are operational staff (you know the ones on the front line)??? Which ever way you cut it Phil's team are proposing a departmental size of well over 1000, indeed 1200 has been banded about. How is this efficient either insourced or outsourced? As for agility or cost effectiveness I'm sure even Phil would need another couple of years before he can claim any success as these issues take a long time to work through and are not suited to comment from fly by night so called experts. As for making the cut, most of those who left of their own volition did so as they could not work with the inequality introduced by the new team. I for one am glad that this issue has surfaced as it puts into question the validity of using outside 'Captains of Industry' to make improvements in any organisation instead of growing talent (which exits in TfL by the bucket load) from within.
- Joe Soap, London
I cannot believe the amount of vindictive rot that is contained in many of these comments. There is no mention of the huge savings that have been made at TfL IT over the last year of so, or of the progress that has been made to drag it into the 21st Century (surf the net if you want evidence). I am sure it was, as with most public sector IT depts, vastly overstaffed, and no, history has clearly proved that outsourcing is not cheaper - that is a fallacy supported only by people who have no grasp of basic economics, and outsourcers. No doubt the majority of the negative comments are posted by those who did make the cut and were asked to leave. That's what happens when you take a private sector attitude into a public sector organisation - it becomes more agile, efficient and cost effective. But don't blame Mr. Pavitt for you being substandard at your job. Anyway it is this investigation that looks more like the real waste of taxpayers money. If we want to improve our public services then we must have more commercially experienced individuals leading these organisations to ensure we all get better value for money.
- London Taxpayer, Middle East
no wonder Pavitt wants to insource(money for the boys)
But why does he think Tfl are a IT company wasting public money(170 million on upgrading desktops and 90 million on a datacentre ,just to control when it can be outsourced cheaper ,just so he can have a Management buyout in a few years,what a complete waste of public money ,when fares are rising and thetransport system grinds to a halt.
- Rob, london
I know IT consultants working at TFL who are on about £700 a day and they sit around and connect to outside web sites and post comments etc,email their friends all day, joke about how they are getting round the system. No wonder government IT systems go so far over budget
- Anon, London
Having worked for the TfL, I know how inefficiently it is run. If proven guilty I believe people should be made to repay these sums of tax payers money.
- Bhav, Hounslow, London
It is also heard on grape vine that another cronie of Phil Pavitt, Steve Townsend who is the IT Director of LU IM was offered the job under the influence of Phil Pavitt hence the reason why Mr Townsend is lying low on the whole saga. Where is the fair recruitment policy in this? There is obviously a huge amount of corruption between Phil Pavitt and all his surrounding cronies and Results International! Come on Peter Hendy do the right thing and get rid of ALL Phil Pavitt’s “Magnificient 7” as this is so much waste of Public money.
- Anon, London
sounds like sour grapes to me from the majority of comments on this site - if you could all have done better then you would have been promoted instead of sacked, but you clearly did not have the necessary skills. As a contractor, companies do not have to pay sick pay, holiday pay, pensions or any other perks that permies get - we take a lot of risk. So grow up and go get yourselves a job where you may find yourselves appreciated - dustbin men are busy at this time of year and I gather are really well paid. BTW - I do not know any of this crowd and have never worked for any of the companies or people listed here
- Js, Wilts, UK
Many of the earlier comments are unfair.
With "customer centricity" at the very heart of tfl im, there have been some major improvements or has there? Computers are as slow as ever, the network is grinding to a hault, shared folders disappear. But the all time classic is the email sent to staff advising outlook email is not working.How are staff supposed to read the apologetic email when they can't access email?
That's customer centricity for you.
Don't believe the hype.
An amused "NO NO"
- Jamie, Maidstone, Kent
TFL should extend their investigation to Pavitt's previous employers including NTL, OneTel, and Centrica.
He has done this before, its about time he paid the price. Phil - maybe you should leave before you are pushed ...again.
- Bang To Rights, UK
It's interesting too (I've just noticed) that everyone who signs up to join the internally publicised IM Advocacy scheme (which Phil is pushing) gets coached by "Results International".
Where will it end? or more importantly, when!
- John, Bedfordshire
I am an internal customer of Mr pavitt's team and instead of trying to change the world they should be focusing on getting networks, PCs and printers working - the basic essentials of a working organisation. I have worked alongside some of his supposed key people over the past three years and they have failed to deliver anything that works, and wasted time and money on expensive pilots which were poorly thought through. They see technology as just a bunch of toys to play with. If he spent more time in his office instead of working from his weekend home in France, we might all get better value for our money.
- John, Bedfordshire
I worked at NTL in the days under when Phil was IT Director. One word, shambolic. And I can't believe in this article he's referred to as one of the UK's top CIO's?! If he was that great he would have secured a similar role when NTL & Telewest merged. Thankfully people saw the IT madness under his reign and he was shown the door.
- Anon, Wiltshire
Anon - has hit the nail on the head. How many of these expensive contractors were at risk as part of last two restructures? Answer NONE. They have continued to be employed, despite assurances from Pavitt that contractors would not be around after a year.Two years on and they are still there earning excessive salaries over £200,000 per year while permanent staff have to reapply for their jobs every year since he joined. From the comments made the same happened at Onetel, sound familiar?
The advocacy program is a complete waste of taxpayers money telling staff how to be energised and to read books on penguins. Does that justify spending hundreds of thousands of pounds on? Absolutely NOT. Staff were pressured into joining the advocacy network and if you didn't you were labeled a "No NO". Staff morale is at an all time low and there is no trust in the senior management team. A sad state of affairs.
After the Lee Jasper affair surely Boris will not tolerate this blatant misuse of public money. It is time our MPs and Assembly members demanded answers from the commissioner and Mayor.
With yearly fare increases and constant overcrowding on the tubes and buses, how can these salaries be justified to the traveling public? Does the person paying a £1,200 a year on an oyster really see the benefit of these contractors, I doubt it. In this economic climate TFL has to act responsibly.
- David G, Hayes, Middlesex
Well Pavitt, looks like you've been caught by the short and curlies. If this does go to trial then he'll probably have his own hand picked lawyers like OJ Simpson, from one corrupt organisation from another. Do TFL a favour Pavitt, quit.
- Yup, UK
You need to work here to understand the level of prejudice in the selection process when it comes to recruiting people for jobs they are quite capable of doing but are instead knocked aside in favour of friends belonging to those in charge. The gluttony, corruption and vanity going on within the inner circle was so blatant, to complain or comment was like putting your own head on the block. For those who praise this regime they obviously did well out of it and for those who were pushed aside and overlooked there is a God afterall...
- Anon, UK
I'm somewhat unsure about the references to the 'big 4' charging high rates to TfL. I don't think any of the largest Systems Integrators are actually serving TfL that much (if at all). One or two have clearly disqualified TfL as a strategic target. There seems to be more interest in employing friends, colleagues and 'boutique' specialists - all of whom have little long term loyalty to TfL...
- Kremen, London, UK
Phil Pavitt brought exactly the same gang of cronies into OneTel and ruined it's IT department made existing people redundant and replaced them with his own inept staff. I hope this con artist is finally exposed for what he really is.
- Karl Horvath, Walsall
It is also worth highlighting that the self titled "Magnificent 7" from NTL all started at TFL within weeks of Mr Pavitt
- Foi, London
You can't just take your mates with you to every new jobs you start. How is that a fair and open recruitment process? How can you demonstrate they are the best people for the job if you don't talk to anyone else?
LUL is part of TfL and has been for the last 5 years.
- Dave, Battersea, London, UK
This isn't only a problem in Group IM, the problem exists throughout the whole of TfL and LUL.
Management disregard any processes in place for the recruitment of interim resources or engagement of consultants. The problem is we have so much cash no one needs to be accountable for any of it!
- Anon, London
Why would you expect a leopard to change his spots?
- Insight, Hook, UK
This is all down to jealous non value add people. Phil and his team are driving down costs for tax payers... Why punish this?
- Harry, london
I've worked with Pavitt and his team and they are a much needed change to what was a stuck in its way, bloated public sector IT division.
The issue here is that close minded job for lifers and deadwood employees finally got turfed out and realise that the real world is not so cosy. The management team run the show like a private sector initiative and are delivering phenomenal cost savings back to the business which is obviously not written about. As for Results International, they have changed hearts and minds in the organisation and are nurturing innovation and talent. I know 90% of the comments posted love the doom and gloom but lets see what happens in the enquiry before we get excited.
- David, London
oh well
- Mac Murray, london
All of this is complete jealously on the part of people who are no good at their jobs; Phil and his team deliver an enthusiastic, fun, but hardworking environment, which everyone wants to be a part off! It’s a shame that good leadership is knocked back by jealous waste of space people.
If Phil is paying higher salaries than market then why are IM costs falling dramatically? He is getting rid of the ‘non value add people’ and replacing it with ‘value add’ which means saving money for the tax payers.
One would suspect that the ‘Freedom of Information’ requests were made by the same people who are writing many of these negative blogs, and guess what... all of these stupid investigations are costing the tax payers money....
Phil you have everyone supporting you here..
- Bambii, london
As an Ex-employee..(my choice) I left for this very reason , people feathering there own nests , instead of doing the job...giving the fare paying public a decent and safe service
- Cowboy, London
Its apaulling that this could still happen after Ken's quango.This is public money being squandered by corrupt heads of an organisation. Boris should hold an enquiry to sort this mess out well done Andrew Gilligan
- C M, Bromley
Perhaps it would be worth checking the Freedom of Information requests that TFL have received in relation to this over the past few months?
- Foi, London
Ha Ha.
Looks like our iceberg is melting...
- Ad Vocate, Antarctica
Triffidqueen, have you maybe considered the fact you're probably just not worth employing?
- Shaun, London
Is this why Axon are winning all the SAP work, it would be interesting to see if anyone else has won any work in this area.
- Stu, London
I find it odd that Pavitt has banged on (and on and on) about getting rid of non-permanent staff from within TfL but sought to bring in his own contract resources on non-permanent and attractive deals.
Some of these are on £1,500 plus a day, and don't deliver much for it in my opinion.
He may be striving for change, but having this "do as I say, not as I do" attitude for a "leader" of his stature is not the way to do it. I can't believe anyone can fail to see what has been going on.
The latest blog is going to be more interesting than reading about his new puppy.
- Johnno, London, England
It is about time that TfL were made accountable for what happens to OUR money. People in Mr Pavitt's position within the structure of management, should be MADE TO DECLARE any & ALL external interests to ensure that there is no nepotism.
In a previous role, this man has had the same or Very similar "team" join him, it stinks, and whatever TfL do they should remember that mud sticks & folk do remember!!!!
- John C, Northampton
Strange that he had a close relationship with Results International whilst at NTL! and guess who else worked for him there? the same people - small world!
- Jack, Reading
Matt Wright
Director, IM Category and Vendor Management at Transport for London
Director at Transport for London
Past
Programme Director at Centrica plc
Programme Director at ntl
Managing Director at Results International plc
Account Director at IBM UK Ltd
Pre University Employee at IBM
see less...
- Nn, ll
Phil said to me privately at one of his grandiose TFL conferences last year when I said I had been thinking of leaving: "We've got tons of government money, it's going to be fun!"
- I Wonder?, Desk in Milton Keynes, Bucks
OK so he's made a few outrageous self-promotional statements, made unsustainable claims, screwed up TfL's IT as well as LU, but he is one of the best - he says so.
- Staffer, london
Phil is a terrific manager and really focuses on delivery and modernising the management ethos.
There is nothing wrong bringing a successful team with him to speed this up.
This has undoubtedly been stirred up because some people’s little copy world is getting shaken up for the better and they don’t like it. Agree his people will be a lot lot cheaper than the Big 4.
Keep up the good work !
- Bobby, London
Alan, Caterham, Surrey; UK... if you we're any good at your job you wouldn't have got sacked... As I recall you wasted ten's of thousands of TfL's money as a contractor who delivered nothing. Good on the managment for weeding out the weak links. Allot more needed. Maybe time to let the past go, life's to short.
- Mipsi, London Town
As the article says - an investigation is under way. Perhaps we should all wait until the results of the investigation are known before condemning someone. Another example of trial by publicity. Not very clever of the reporter. Also, it would be interesting to know if the "TfL Source" is in fact an ex-TfL source. Maybe this guy Pavitt is just trying to make a difference at TfL and ruffling a few old fat feathers along the way 
- Brian Jones, Edinburgh
Its about time it came out a lot of good people have lost there jobs for his team to come in, for more then a £1000.00 a day under stealth. Hope there is a system out there so TFL can get the money back from him and his team!!!!!!!!! Someone needs to look into all the new contracts he has awarded. Is it another way to get more money ..??????
- James, london,england
If you look at his LinkedIn profile and his friends/associates and connections, you'll see a who's who of tfl IM senior management. I bet the secret Santa presents are going to be £5 this year Phil!
Dave.
- Dt, Orpington
No mention of all the great work that is going on within TfL IM, the millions that are being saved of public money or the removal of ‘£2000+ a day’ consultants from the Big 4 that appear in every other government department in droves yet seems acceptable to most.
- Rich, London
This is awful news, it can't be good for morale at TfL. I mean you probably have a load of employees all gathered around the Internet laughing & making jokes about these allegations.
- Glenda Burnes, Disgruntled, London
What goes around, comes around; as a casualty I'm pleased its out and hope that this niaive (selective) propaganda merchant is punished suitably, along with his team of clowns.
Much work to do to get TfL IM in the right direction again, I'm expecting to see more revelations as they investigate Mr Pavitt, there is much to be found.
- Alan, Caterham, Surrey; UK
Yay more crooks in public offices it seems if true
I can't beleive in the ridiculous abscence of any standards in this country. They're all on the make. can't seem to trust anybody in public office - will he go to jail if found guilty, will it get that far?
Not a chance
- Ged, London
Another example of a senior insider wasting public funds without a care in the world - what I would call a greedy pig.
If this story turns out to be true then Mr Pavitt should be sacked immediately, along with every member of his team who has been on the board of Results International.
His reputation as "one of Britain's top CIO's" is laughable in the wake of these allegations. With any luck he'll not be controlling any public funds again.
AND yet again TFL have failed to monitor and manage their own internal funds and processes, how many times does this have to happen before something is REALLY done about it, enough words - more action.
- Jb, London, England
Where large amounts of money slosh about unsupervised (or nearly so) some entrepreneurial soul will allways find a way to divert the money to what he or she considers a superior purpose.
- Kiwi Expat, London, UK
The recruitment process at tfl is corupt anyway regardless if you apply through the front or back door. I have tried applying for several jobs over the past 2 years and I have never been selected for an interview. Why, simply because I am a White,hetrosexual female.
- Triffidqueen, Desk in London
