Decision

Summary of business appointments applications - Mark Dearnley

Updated 30 January 2018

Mark Dearnley left his role as Chief Digital & Information Officer at HM Revenue & Customs in September 2016.

1. Senior Advisor, Bain & Company

Mr Dearnley sought advice on taking up an appointment with Bain & Company (Bain).

His responsibilities as Senior Advisor would include advising on IT strategy and transformation, with a focus on the telecommunications sector. He confirmed that he would be entirely focused on commercial sector advisory work and the appointment would not include contact with Government.

Mr Dearnley informed the Committee that Bain was awarded the contract for ‘Lead Transformation Partner’ on the HMRC Columbus Programme in September 2015. He was the Senior Responsible Officer (SRO) for the Columbus Programme and was involved in the selection of Bain as part of the OJEU process. Between September 2015 and September 2016 he met regularly with the Bain team working on the Columbus Programme.

Mr Dearnley has given an undertaking to the Committee that, for the period he is subject to the Rules, he would not be involved in advising on any UK public sector contracts, and he would have no involvement in Bain’s engagements with HMRC. Neither would he be involved in any tendering processes for future work at HMRC, or the UK public sector. He has also made an open-ended undertaking not to become involved in advising Bain if it bids if/ when HMRC retenders for a new strategic partner.

The Committee carefully considered the risks presented by this application given Mr Dearnley was seeking to be employed by a company he was involved in selecting for a significant contract.

The Committee concluded that the following factors significantly mitigate the risk it could be considered this appointment is a reward for decisions made while in office:

• The contract was let following a competitive and OJEU process, details of which are in the public domain. The panel of 5 was unanimous in scoring Bain as the highest scoring bidder.
• The Permanent Secretary at HMRC has no reservations about the appointment and does not consider there is any risk it has been offered as a reward.
• Mr Dearnley previously held senior positions at Vodafone UK and Cable and Wireless and this role at Bain will focus on the telecommunications sector; which reflects his experience prior to joining Government on a fixed term contract.
• As Mr Dearnley worked with Bain before joining the Civil service, he was known to the company before his involvement in letting the HMRC contract.
• Bain was selected for the strategic partner contract with HMRC in mid-August 2015 (over two years ago); and by the time he starts this role 15 months will have passed since he left office.

The Committee also considered the risk that Bain could unfairly benefit from employing Mr Dearnley in relation to securing future contracts with HMRC and considered whether a ‘waiting period’ would be appropriate in this case. However, it noted there would be a 15-month gap between him leaving Government and starting with Bain. Further, the Department has confirmed that he has no access to commercially sensitive information about competitors of his prospective employer. The Committee also considered it significant that he has confirmed that he would be entirely focused on advisory work in the commercial sector and has given a clear and unequivocal undertaking that he will not be involved in any contracts with HMRC or the UK public sector more widely.

The Prime Minister accepted the Committee’s advice that, in accordance with the Government’s Business Appointment Rules, the appointment be subject to the following conditions:

• that he should not draw on (disclose or use for the benefit of himself or the organisations to which this advice refers) any privileged information available to him from his time in Crown service;

• for two years from his last day of service he should not provide advice to any company or organisation on the terms of, or with regard to the subject matter of, a bid or contract relating directly to the work of HMRC;

• he should not involve himself in work related to any bid Bain may make if/ when HMRC retenders for a new strategic partner; and

• for two years from his last day in service, he should not become personally involved in lobbying the UK Government on behalf of Bain & Company or its subsidiaries or clients, or make use, directly or indirectly, of his contacts in Government and/or Crown service to influence policy or secure business on their behalf.

The letter containing the Committee’s advice was sent in December 2017 and the appointment was taken up in January 2018.

2. Chief Information Officer, Technology Leadership, Premium Credit Ltd

Mr Dearnley sought advice on taking up a full-time, paid appointment as Chief Information Officer – Technology Leadership, at Premium Credit Ltd.

When considering this application the Committee took into account that the role will not include any contact or dealings with Mr Dearnley’s former department or government more generally. It also noted that he had not personally had any direct contractual dealings with his prospective employer over his last two years of service and was not responsible for anyone who did. Neither had he been involved in the development or administration of any departmental policy or in policy or regulatory work that has affected or could affect his prospective employer or its competitors.

The Committee sought the views of the Permanent Secretary for HMRC who raised no concerns about the propriety of the appointment.

The Prime Minister accepted the Committee’s advice that there was no reason why Mr Dearnley should not take up this position, subject to the following conditions:

• That he should not draw on (disclose or use for the benefit of himself or the organisations to which this advice refers) any privileged information available to him from his time in Crown service;

• For two years from his last day in Crown service, he should not become personally involved in lobbying the UK Government on behalf of Premium Credit Ltd, its clients or its parent company.

The letter containing the final advice was sent in August 2016 and the appointment was taken up in October.