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Cheating MPs in £1m expenses payback day
Nicholas Cecil, Paul Waugh and Pippa Crerar4 Feb 2010
The full scale of the MPs' expenses scandal was laid bare today in a day of shame for Parliament.
Hundreds were told to repay a total of more than £1.1 million after years of misusing taxpayer-funded second-home allowances.
Commons auditor Sir Thomas Legg struck out demands submitted by nearly 350 MPs or former MPs — half of those he investigated.
His findings destroyed claims by some MPs that just a small number of “bad apples” were milking the system. But MPs launched a counter-attack, with Tory Ann Widdecombe calling the review “lazy, incompetent and illogical”.
In his report, Sir Thomas condemned the “deeply flawed” expenses system for second homes.
“The rules were vague, and MPs were themselves self-certifying as to the propriety of their use of the allowance,” he said. “Taken with the prevailing lack of transparency and the culture of deference', this meant the Commons fees office's decisions lacked legitimacy and many of them were in fact mistaken.”
Sir Thomas was scathing about the role of former Speaker Michael Martin. He said officials in the fees office were “vulnerable to the influence of higher authorities in the House of Commons, from the Speaker down”.
In a black day for Parliament, he ruled that Tory couple Andrew Mackay and Julie Kirkbride must repay more than £60,000 and ordered Labour minister Barbara Follett to pay back £42,458 — the highest single amount.
The highest demand for a London MP was £5,121 from Labour's Joan Ryan, of Enfield North.
“Duck house” MP Sir Peter Viggers must repay £13,264 after an appeal reduced his bill by just over £200; MP Douglas Hogg, who submitted claims for cleaning his moat, has to hand back £20,639; and Lord Mandelson was told to repay £800 in gardening bills claimed when he was an MP.
Some MPs were today defying Sir Thomas's repayment demands but Commons Leader Harriet Harman warned them that their salary would be docked if they did not pay up.
It also emerged that the Commons authorities have re-opened the appeal process in another concession.
At least £800,000 has already been paid back by MPs. They have until 22 February to make repayments.
Sir Paul Kennedy, the former High Court judge who upheld 44 appeals by MPs against Sir Thomas's decisions, attacked some of the reasoning.
He said it was “damaging and wrong” to say MPs who made apparently genuine claims within existing rules engaged in “tainted” practices. He found “little if any evidence” that MPs “lacked in propriety” and cut the overall payback bill by £180,000.
Sir Paul's criticism came 48 hours after Sir Christopher Kelly, chairman of the Committee on Standards in Public Life, hit back at a bid to dilute his planned expenses overhaul by the Independent Parliamentary Standards Authority.
It emerged that the review by Sir Thomas, who did not demand repayments from MPs being investigated by police, has cost £1.16 million — more than the £1.1 million MPs must repay.
Separate new figures showed that the most expensive MP in 2008/09 was Labour's Mohammad Sarwar of Glasgow, claiming £192,986. Labour's Barry Gardiner of Brent North topped the London list with £164,986. Claims total £95 million.
WHAT MPs MUST REPAY
£711,000 for mortgage/rent
£105,000 for cleaning
£81,000 for service/maintenance
£73,000 for repairs/insurance/security
£35,000 for Council tax/rates
£23,000 for phone & telecoms
£12,000 for food
£10,000 for utilities
£4,000 for hotel stays
£252,000 Other payments'
Total: £1,306,000 (reduced by £180,000 after appeals to £1.1m
THE ONES THAT GOT AWAY
Labour MP Ann Cryer had been ordered to repay almost £19,000 for soft furnishings and renting a room in her son-in-law's Westminster flat from 2004 to 2005. Her appeal was successful as MPs were only told in 2006 this was not permissible. She was ordered to repay £1,600 towards a rug, a table and a carpet.
Tory Peter Lilley was asked to repay £41,000 in mortgage interest on a loan he took out to pay back his wife who lent him cash to buy a house. The judge agreed he had followed the rules and overturned the demand.
Tory Bernard Jenkin, who was asked to repay over £63,000 in expenses that he paid in rent to his sister-in-law, had the amount almost halved. He claimed he was unaware the rules had changed.
Labour's Mike Gapes was asked to repay £187 for council tax. It was cut on appeal to 40p.
Reader views (41)
WELL,WELL,WELL,THE"PROMISES"OF TRANSPARENCY AND JUSTICE ARE THERE FOR ALL TO SEE.WE SEE THROUGH THEM AND THEY JUSTIFY THEIR ARROGANCE AND CONTEMPT FOR THE MUGS.SORRY CHAPS BUT ANYONE WHO VOTES FOR ANY OF THESE LEECHES IS SAYING "PUT YOUR SNOUTS BACK IN THE TROUGH"
- Crillbo, LIVERPOOL UK, 12/03/2010 17:56
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The recent pledge by Kennedy that MP’s must pay back profits from second homes only applies to gains since November 2009, [http://gains from massive Increases up to 2008 will be ignored.|http://gains from massive Increases up to 2008 will be ignored.] Once again they fail to live up to expectations.
Profits from second homes need to be backdated to 1997. There was never any political will to enable the average person earning average wage to be able to afford an average house in a rising unregulated market, under a secret expenses system, where MP’s were all flipping houses, making hundreds of thousands in personal profits. Not one MP represented the average wage earner. It is typical that the plan is NOT to reclaim the profits made before 2008 – as this is when 95% of the profit would have been made. Again it appears a symbolic gesture to appease angry voters. But we will NOT be so easily conned. It is not just that they used our money to profit, and paid no tax on the gains, it is also that it created a dangerous conflict of interest that meant that voting for policies which fed the house price bubble also generated personal profits for them. MP’s should not be able to make any kind of PERSONAL profit whatsoever, with Taxpayers money.
Millions of us average hardworking people, have been forced to waste tens upon tens of thousands in rent for over 10 years, paying for someone elses debt. MP's have destroyed out chances to get a decent start in life. We own nothing. We have worked for nothing.
MP's MUST PAY ALL PERSONAL PROFITS BACK, BACKDAT
- Joe Public, London, 09/03/2010 10:14
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Surely,enough is enough.The so called Honourable Members are using their usual tactics of putting time between the event and the outome.They will use every trick in the book to deny any form of justice and we will be told that it is not possible to bring criminal proceedings or to reclaim the stolen money.
Sorry chaps but we are the Hoi Polloi and you ca`nt beat City Hall.
- Crillbo, LIVERPOOL UK, 28/02/2010 07:25
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you cant beat the dodgy mps as they make the rules up as they need to . so they can keep on making money us the tax payer sack the lot and start again. Not much to look foward to is there
- Dennis Geach, canvey island, 14/02/2010 13:24
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until these ligitmised villains have been convicted of the very obvious theft and fraud of our taxes, surely we are all entitled to do the same ?
- Rod Mackintosh, berlin gemany, 05/02/2010 08:30
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The inquiry itrself cost more than the amount claimed on expenses and we pay more than that every single day on supporting failed asylum seekers so why the fuss?
- Dave Filton, Bristol Englan, 04/02/2010 21:32
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Local government needs a Legge. All too often we hear of high questionable expenses being made by senior local government leaders and yet there is no body charged with policing these people.
- Justin Downes, London, 04/02/2010 18:11
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Yes, "the establishment" has closed ranks in order to protect these "special people". Let us not forget come election time, that this "protection" has been facilitated by Gordon Brown. Were it not that he "formed the circle" the electorate would have by now been allowed to apply a democratic solution.
- Peter Sturdgess, Fishguard Wales, 04/02/2010 18:01
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They blame the "system" but MPs used the system.
Clearly it was to refund expenses for being away from their costituency. Therefore any second home should be in London.
Some MPs have abused this.
I am an ex civil servant I know of a case where an Executive Officer claimed night susistance but was seen at his home that night,claim £50 ; he was sacked.
Lessons to be learned.
- John, Buckley Flints, 04/02/2010 17:28
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Sorry most of us are hypocrites, if we had the chance to claim expenses with vague rules we would do it. I don’t blame them for fighting back, who would want anyone knocking on their door claiming back something after the event. This goes back for years, so why make these MPs scapegoats for years of neglect of the rules.
- Jack, London, 04/02/2010 16:55
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Do not vote for any of these thieving criminals,they have betrayed our trust and unless we want this to continue,we need to stand together as a nation and fire the lot of them
- Dave, london, 04/02/2010 16:55
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@ Melvyn Windebank, Canvey Island, Essex
Did you read the article at all?
".. and ordered Labour minister Barbara Follett to pay back £42,458 — the highest single amount."
"Separate new figures showed that the most expensive MP in 2008/09 was Labour's Mohammad Sarwar of Glasgow, claiming £192,986. Labour's Barry Gardiner of Brent North topped the London list with £164,986."
The political classes are all as bad as each other matey. Your much loved "rich" socialists are in it up to their necks as much as everyone else.
BTW - Labour have been in power over the last 12+ years and presided over this corruption and chose to do nothing about it.
- Frank, Home Counties, England., 04/02/2010 16:46
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It is with great concern to me, that you think it fit to raise the old chestnut of hard working MP's and the supposed outrage of our well earned and under paid expenses.When does the gullible voting public get it into their heads that walking in the corridors of power entitles the privileged six hundred odd parliamentarians a certain standard to uphold at the cost of the tax payer.Most of us fail to understand why any media person or for that matter anyone with an opinion, could even think of raising an eyebrow at what has taken place for hundreds of years.It's ridiculous to want a change and we are quite happy at the Palace of Westminster to not bother the electorate who must have more important things to do,than interfere with our way of life.One would assume there would be a degree of sympathy for our plight and why it's necessary to take advantage of the so called perks and encourage the average MP to try and double his or her salary by various means of radio/TV,a column in a newspaper and the various directorships or consultancy work that is thrown at us by grateful individuals, that obviously need our sought after help.It's only a matter of time before the ungrateful want the House Of Lords or MEP'S scrutinised for the stirling work they ALL perform .Please end this witch hunt,it's not very British and I would prefer the patriotic to appreciate the order of a civilised society is dependent on being told what to do by your betters and never complain.That is transparency
- Jonnieofbrixton, brixton,london,england, 04/02/2010 16:34
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In cases where the DPP does not feel there is a better then evens chance of pressing home a fraud conviction, the MP’s will still have displayed a deplorable lack of probity. It is therefore the duty of the rest of us to monitor any future appointments these people might be awarded, as these, in turn, might be as a result of a lack of probity in their section processes. We must ensure that these mutual back-scratchers are no longer able to feather each others nests at a cost to the wider community.
- Back Garden, London, England, 04/02/2010 16:19
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Yes, this 'scandal' is bad and, yes, there are a number of abuses that have occurred here.
But in a week where two CEOs get £15+ for signing a contract, in which bankers huge multi-billion pound bonus pots drove up London house prices yet again, this really really is small fry.
- Liam, London, 04/02/2010 16:09
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The Met was often accused by many MPs of institutional racism.
Now its payback time and the Met ought to put this lot in court as there appears to be a prima facie case of, "institutional fraud," to which everyone connected with parliament, for their own convenience, turned a blind. Has a certain ring about it!
- Brian G, Norfolk Gorleston, 04/02/2010 15:11
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What is wrong with the Met that there has yet to be any criminal investigation or charges against MPs?
Unlike HMRC which you'd expect to be incompetent and frightened of politicians, the Met police by consent and unless they start policing fraud Westminster the same way they'd police fraud in West Ham then they shall not have that consent any longer.
There are at least 43 known cases of fraud from the expenses scandal and the appropriate place for those MPs to defend their behaviour is under oath in a court of law.
- Stew, London, 04/02/2010 15:00
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This won't be over until some of these cheats are prosecuted and jailed.
- Carl, London, 04/02/2010 14:31
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Why so few cases refered to the DPP??
Why go back only 4 years???
How many HMRC investigations???
- Very Angry At Mp'S Expenses, Home Counties, 04/02/2010 14:12
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Melvyn, even Brown and Cameron have the common sense to not use this issue to pathetically toss stones over which side stole more.
- Kevin T, Beckenham, Kent, 04/02/2010 14:09
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I think MPs are brilliant!
- Scotty, London, 04/02/2010 14:07
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there is a clear disstintion betwen fraud (and therefore cheating) than claiming more for a particular expense that retrospectively Legg (and party leaders) have decided was more than reasonable.
collectively calling "cheats" all that are being asked to pay back expenses, under-estimates the behaviour of the real frauds and unnecessarily taints the others.
- Martin_Clerkenwell, london, 04/02/2010 13:53
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We are all equal but some are more equal than others.
- Frank, Copenhagen, Denmark, 04/02/2010 13:52
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My employer had a 'Revenue agreement' covering some kinds of 'expenses' I claimed - we were all meticulous that they were 'wholly, exclusively and necessarily' for my work. Can we now hope that HMRC will look back over as many years as possible for scammy MPs and apply the same standards as properly applied to me?
- Steve, London, England, 04/02/2010 13:32
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And so MPs should pay back expenses retrospectively.
After all, they voted through the 2008 Finance Bill which introduces retrospective taxation.
- Simon, London, 04/02/2010 12:38
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And not one mention of criminal charges being made, talk about one rule for them and one for the rest of us!
- Mike, London and once Gt.Britain, 04/02/2010 12:20
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The comments I have found really funny are from the MPs that when caught, claiming for the same thing twice, said "it was a mistake". I wonder how many ordinary folk would get away with that if they ended up in a court of law - none. Its taxpayers money they are fiddling. Throw them all out of office as if they haven't got the brains to claim for genuine things instead of 'mistakes' they are obviously too thick to become an MP. Or maybe that is prerequisite to becoming one!
- Sue, Kent, 04/02/2010 12:17
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Bj, East London - sadly I have to agree with you; apathy these crooks to gain office. It would be good to think that come May, the electorate will inflict justice on the wrongdoers.
Unfortunately, the liklehood is that of those who do vote, most will put their "X" in the box dictated by years of party "loyalty". In many safe seats, the incumbent party could put up a chimpanzee, and it would be returned to Parliament.
The complacent establishment parties need a thorough kicking. Come on Britain, wake up!!
- John C, Leatherhead, UK, 04/02/2010 12:15
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Nice to know the list with the highest amounts is dominated by Conservative M.Ps perhaps they hoped to airbrush out this information!!
So to moats and castles we now have Gummer with his lawnmower well I suppose these Tories always want to be a cut above the rest!!
- Melvyn Windebank, Canvey Island, Essex, 04/02/2010 11:54
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This is the 3rd review into MPs expenses, after the ineffective one by the former disgraced speaker and the expensive KPMG one.
But I still don't see any MPs being charged for fraud, for that is what they are guilty of in a lot of cases. And I also don't see any change of the rules that will prevent them from nosebagging their way through the next parliament.
I also spend 4 or 5 days away from home, which is my choice. I get back in expenses only what I spend. I do not get a flat at my employer's expense; I do not get a free plasma telly; I do not get my garden at home tended to while I am away; and I don't get free porn, unlike Jacqui Smith's husband.
The whole system needs to be brought up to date and come under the scrutiny of the taxman, who would not tolerate any of the exaggerated claims we have seen in the past 18 months.
Despite what the denizens of SW1 think, MPs are not special. They have proven that consistently during this episode.
- Nobby Clark, Perth, the Scottish one, 04/02/2010 11:54
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Martin Nichols, on the off chance that you are not joking, these people make the laws of the country and they see to it that plebs like us are put away or given hefty fines if we step out of line much less than they have. That is the hypocrisy, not the public's anger that they have been stealing our taxes. It amazes me there are those who are willing to bend over and continue taking it from these criminals.
- Kevin T, Beckenham, Kent, 04/02/2010 11:04
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I have spent a large part of my working life living away from home Monday to Friday. It was my choice and I had to foot the bill for my accomodation and travel expenses. I don't understand why MPs should be any different. I suppose they would argue that they are helping to run the country. Seeing as this country is in the biggest financial mess in living memory it's the sort of help we could do without!
If I'd fiddled my expenses I would have been fined by the taxman. I wonder how many MPs will fall into this category?
It's time to vote out these shysters!
- I Taylor, Preston, Lancs., 04/02/2010 11:01
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While not condoning what has been happening all these past years, I fear all the comments so far reflect as much a hypocritical desire for revenge, perhaps from a standpoint of envy, as true high-mindedness. I believe one has to judge this siphoning of public funds in the light of what was common practice at the time and not as outright theft.
- Martin Nichols, Grasse, France, 04/02/2010 10:39
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It's very sad. But at least in Great Britain these bad actions are denounced. Here in France there are also these frauds but they remain hidden.
- Donval J., Lorient, France, 04/02/2010 10:38
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It's in our hands. Forget who footballers are sleeping with; forget who's dancing on ice up the junge; Keep the pressure up until May and then vote the crooks out of parliament. If your crooked MP is not standing, make sure you vote for a candidate from another party.
Rant over, apathy will always win the day.
- Bj, East London, 04/02/2010 10:26
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Is this not akin to running a cartel?Do directors not get disbarred for cartel involvement?We pay as taxpayers but have no input into the rules according to which we pay.Does this sound right to anyone?If your mobile phone company offers to provide you with a service you paid for but you had no idea of the terms or conditions of the service would you pay?
- Amoreno, Luxembourg, 04/02/2010 09:57
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Can you please let us know whether these MPs are getting away with paying what they should have at the time, or whether there is any 'penalty payment' involved, which is what presumably would have applied to Average Joe Bloggs?
- Marianne, SW France/London, 04/02/2010 09:46
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All these criminals must be kicked out in May and decent, honest members elected to replace them. All second homes belong to the tax payer and must be sold and the money returned to the treasury. Their severance pay and pensions must be frozen until they have repair what they stole from the public purse. They have turned Westminster into a human cesspit and dragged the reputation of parliament through the gutter.
- R.F.York, Yorks, UK, 04/02/2010 09:34
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Every MP who has had his hand in the till and been found guilty of taking what is not rightly theirs should:
Pay back the amount they were not entitled to
Pay back any profit they have made on that benefit i.e. the full capital gain on any property not just the CGT
Pay a fine equal to 100% of the amount they weren't entitled to.
Be disbarred from public office for life.
Spend 12 months in prison for fraud.
Only then will the British Public feel that justice has been done and MPs have been punished.
- Adam, Harrow, Uk, 04/02/2010 09:31
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There is only one way to sort this matter out once and for all. That is for Brown to call an election now, the electorate can then decide on the explanation of their sitting MP whether to keep them or give them the boot. We would then have a parliament which could start afresh and put this debacle behind them.
- Brian G, Norfolk Gorleston, 04/02/2010 08:53
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It is to be hoped that we have an election where sitting candidates are confronted with the details of their claims and shamed by their electors.
I am sick of the talk of "a rotten system" & "we must put this behind us".The Establishment has successfully protected the politicians from the prosecutions which we ordinary mortals would have faced.
The nauseating fraudsters must be brought to justice and I can see violence at the election as frustrated voters face the criminal MPs.
- P Doff, filey uk, 04/02/2010 08:45
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