Johnson breached rules by being ‘evasive’ about hedge fund links
Former prime minister Boris Johnson has breached UK Government rules by being “evasive” about his relationship with a company that set up a meeting between him and Venezuela’s President Nicolas Maduro, the business appointments watchdog has said.
Lord Pickles, chairman of the Advisory Committee on Business Appointments (Acoba), has written to both Mr Johnson and Deputy Prime Minister Oliver Dowden warning of the breach.
Itcomesaftertheformerconservative prime minister failed to clarify his relationship with a company called Merlyn Advisors, a hedge fund. Mr Johnson is reported to have met Mr Maduro alongside Merlyn Advisors co-founder Maarten Petermann in February.
Lord Pickles wrote in his lettertomrdowden:“mrjohnson has repeatedly been asked by Acobatoclarifyhisrelationship with Merlyn Advisors. He has not done so, nor has he denied the reports in the media that he has been working with Merlyn Advisors on a non-contractual basis.”
Government rules state former ministers must not take up new jobs or appointments for two years after leaving public office without advice from Acoba first.
In correspondence dating back to March 18, the watchdog contacted Mr Johnson’s office asking him to set out his relationship with Merlyn Advisors following media reports of his South American visit. He replied he had no contractual relationship with the company, and in further correspondence said he had not been paid for any meetings in Venezuela.
He added: “I was extensively briefed by HMA (His Majesty’s Ambassador) Caracas before the meeting and used the occasion to push for democracy, human rights and the support of Ukraine.”
Lord Pickles raised concerns that the trip was paid for by Merlyn Advisors and about the natureofmrjohnson’sactivities for the company, even though
he was not under any formal contract. The peer warned: “If that is the case, there is a reasonable concern that you were acting in a capacity that would be inconsistent with Acoba’s guidance on ‘one-off’ speaking engagements – which does not provideblanketapprovalforadhoc advisory work.”
Mr Johnson did not answer further questions from Lord Pickles about the nature of the meetings or his relationship
with Merlyn, and said he believed it was “clearly not necessarytoconsultorseekacoba” about the work.
But the watchdog chief disagreed and said there “remains a reasonable concern that you were acting for Merlyn Advisors in a capacity that would be considered advisory work”, which Acoba would have expected him to ask advice for.
He added: “Given the evasive natureofyourreplies,yourfailuretoanswerspecificquestions
put to you, or provide the context of your relationship with Merlyn Advisors, the committee has formed the view that there has been a breach of the Government’s business appointment rules.”
Lordpicklesthenreportedmr Johnson’s actions to Mr Dowden, who is also responsible for overseeing the Cabinet Office, thedepartmentwhichoversees the machinery of Government.
Mr Johnson has repeatedly been asked to clarify the relationship