Dynamite on Djanogly?

[jman]

Oh dear, it looks like our legal aid minister, Jonathon Djanogly MP may (according to a Guardian article) have hit a bit of bother over how much he'll stand to gain from lucrative profits out of the legal aid reforms he's proposing.






Here's what the article says....


Guardian

" Conservative MP piloting legal aid cuts may profit from the changesJonathan Djanogly's role as insurance firm partner means he could personally profit from bill he is pushing through parliament"


By Randeep Ramesh, social affairs editor guardian.co.uk, Friday 16 September 2011 20.09

"Jonathan Djanogly's legal aid plans will benefit the insurance industry by 'hundreds of millions of pounds', say experts.

The Conservative justice minister piloting controversial plans to cut legal aid and curb payouts that could benefit the insurance industry to the tune of a billion pounds a year will personally profit from the changes, a Guardian investigation can reveal.

Jonathan Djanogly, the legal services minister, is pushing a bill through parliament which will attempt to slash the budget for legal aid by £350m as well as forcing claimants to pay out of any awarded damages their lawyers' success fees and insurance policies that cover court costs. Experts say this will benefit the insurance industry by at least "hundreds of millions of pounds".

The Association of British Insurers admits that industry will benefit from the reforms – and if Ireland's experience is any guide the proposals in the legal aid, sentencing and punishment of offenders bill offer a chance to cut premiums by 16%.

Djanogly, who is considered to be one of the 10 richest MPs with interests in a property, a string of stockmarket investments and a Scottish forestry portfolio, also has a personal stake in the insurance industry.

In the Commons register of members' interests, he lists that he is a "minority partner in The Djanogly Family LLP (member of Lloyd's)". This means he takes one sixth of the profits from an Lloyds underwriting partnership that deals in accident, health and motor claims.

In the past three years Djanogly has been entitled to an average annual payout from the underwriters of £41,000. In 2009 Djanogly was eligible to almost £97,000 from the profits of the partnership – more than his current ministerial salary of £89,000.

The ministerial code, issued by the Cabinet Office when the coalition took power last May, clearly states: "Ministers must ensure that no conflict arises, or could reasonably be perceived to arise, between their public duties and their private interests, financial or otherwise."

Labour said the only people arguing for these changes "are the insurance industry and Conservative ministers". Andrew Slaughter, the shadow justice minister, said: "There are serious questions for the minister to answer. It would be a serious matter if the minister were pursuing legislation from which he might benefit financially.".................................."


See link to full article...




www.guardian.co.uk/politics/2011/sep/16/conservative-mp-legal-aid-cuts?INTCMP=SRCH

[nickd]

Link to Djanogly family LLP accounts 2010

image.guardian.co.uk/sys-files/Guardian/documents/2011/09/16/Randeep1.pdf

Profit and [Loss) for the financial period available for division among members 2009 = £580,943 2010 = £47, 784

Djanogly family LLP accounts 2009

image.guardian.co.uk/sys-files/Guardian/documents/2011/09/16/Randeep2.pdf

Profit and [Loss) for the financial period available for division among members 2008 = £112,731 2009 = £580,943

Djanogly family LLP accounts 2008

image.guardian.co.uk/sys-files/Guardian/documents/2011/09/16/Randeep3.pdf

Profit and [Loss) for the financial period available for division among members 2007 = £24,313 2008 = £112,731

Of which Mr Djanogly declares a minority share of 1/6th.


Here's how Mr Djanogly's expenses are shown via the ' they work for you website'...

Register of Members’ Interests

2. Remunerated employment, office, profession etc

Membership of Lloyds (resigned 31 December 2006).

Partner in SJ Berwin LLP, 10 Queen Street Place London EC4 1BE. (Resigned 31 July 2009)

Received on 10 September 2010 £75,707 partnership profits relating to financial year 2007-08 (Registered 7 October 2010)

Received on 10 September 2010 £7,704 partnership profits relating to financial year 2008-09 (Registered 7 October 2010)

8. Land and Property

Woodland in Dumfriesshire.

9. Registrable shareholdings

(b) Barclays PLC; banks
(b) Carpetright PLC; general retailers
(b) HSBC Holdings PLC; banks
(b) Lloyds TSB Group PLC; banks
(b) Next PLC; retailers
(b) Tesco PLC; food retailers
(b) WPP Group PLC; media and photography
(b) Amlin plc; insurance
(b) De la Rue plc; printers
(b) Imperial Tobacco; tobacco
(b) Oakley Capital Investment Ltd; financial
(b) Royal Dutch Shell plc; oil and gas
(b) Vodafone plc; communications
(b) Derwent London plc; property
(b) Diageo plc, beverages
(b) Invesco plc; investment trusts

11. Miscellaneous
Minority partner in The Djanogly Family LLP (member of Lloyd’s).
Register last updated: 30 Aug 2011. More about the Register

www.theyworkforyou.com/mp/jonathan_djanogly/huntingdon#register

[nickd]

And here's John Major on his successor Mr Djanogly...





The Millionaire Tory, the au pair and £25,000 in repaid expenses:

John Major condemns 'greedy' successor

By TIM SHIPMAN and ANDREW LEVY
Last updated at 1:01 AM on 10th July 2009


Sir John Major has privately condemned the excessive expenses claims of the Tory MP who inherited his safe seat.

The former Prime Minister has told friends that he regards the behaviour of Jonathan Djanogly as 'greedy' and 'inappropriate'.
Details of Sir John's disquiet emerged as his allies voiced their anger during a private meeting of the Huntingdon constituency party last night.

Mr Djanogly, the shadow solicitor general, is fighting to defend his position after claims that he breached Commons rules by claiming money for a cleaner who may also have worked as an au pair to his children.

MPs are banned from claiming for childcare.

Multi-millionaire Mr Djanogly, who also has a £300,000 second job as a city solicitor, denies the charge, saying the girl was only ever paid for cleaning. But he has already repaid £25,000 after claiming £13,962 for cleaning and £12,951 for gardening at his country home over four years. It is the largest amount returned by any Tory MP.

The Polish girl, identified only as 'Miss G', lived at the MP's London home. But according to Mr Djanogly's expenses claims, she was employed only to clean his constituency home 100 miles away.
The girl had previously advertised on the website newaupair.com, describing herself as a nanny. Mr Djanogly is already in hot water with Sir John's allies in the local party, who are disappointed that someone so wealthy decided to milk the expenses system so blatantly.

A Tory with close links to the constituency party told the Daily Mail: 'John Major is very unimpressed with what has been going on.
'He has kept silent in public but he has let it be known that he thinks Jonathan has behaved badly. It's completely inappropriate.
'People have told Jonathan they don't approve and that John doesn't approve but he keeps insisting that he did nothing wrong.
'Why would someone with extensive share holdings want to expense £1,500 a month for a cleaner and gardener when he has a hugely lucrative job in the City as well. I tell you why - pure greed.'

Sir John's former election agent Sir Peter Brown resigned last week from the same post alongside Mr Djanogly.
His resignation letter detailed the 'momentous times' working with 'a British Prime Minister whose service to the Country and his Constituency were exemplary'. He pointedly made no reference to Mr Djanogly.

Mr Djanogly said yesterday: 'My claims were made within the law and the rules of the second home allowance scheme.
'Miss G has now signed a written statement that she was employed by us from October 2007 to November 2008 only as a cleaner at our constituency home in Huntingdon.'

But neighbours of Mr Djanogly said they had never seen any evidence of a cleaner at the property, a detached house in Alconbury, near Huntingdon, which was bought for £440,000 in 2000.

One woman said: 'I've lived here for nearly 25 years and I can honestly say I've never seen anyone turn up at his house to clean it.

'The family are here some weekends and they keep themselves to themselves. But I've never seen them turn up with a young girl who might be a cleaner.'

Another neighbour added: 'I've never seen anyone visiting the house to do cleaning.'

Allies of Sir John have refused to publicly voice support for Mr Djanogly and several critics were expected to ambush him with questions at the 'clear the air' meeting last night.

Party sources predicted that if Mr Djanogly did not have satisfactory answers that they might seek to deselect him.
Huntingdon southern district chairman Ken Churchill said Mr Djanogly would face 'difficult' questions at the association meeting.

'A lot of people in the district would like more in-depth answers to the questions that have been raised so far,' he said.
Last night a spokesman for Sir John admitted he was 'dismayed' by the expenses scandal.

'I don't think any of us are remotely amused by any of the claims that have been made,' the spokesman said.
'Sir John has been as dismayed as anyone by the slow unravelling of some of these claims.'

link to article...


Read more: www.dailymail.co.uk/news/article-1198723/The-Millionaire-Tory-au-pair-25-000-repaid-expenses-John-Major-condemns-greedy-successor-Tory-anger-grows-huge-expenses-claim.html#ixzz1Y9sgPvE2

www.powerbase.info/index.php/Jonathan_Djanogly

[nickd]

Background

Formerly the Shadow Minister for Corporate Governance and Solicitor-General, Djanogly was appointed as Justice Minister in May 2010.

Djanogly - a millionaire - is reputed to be one of the wealthiest members of the House of Commons. He is the son of textile manufacturer Sir Harry Djanogly, whose fortune is estimated at £300 million. Jonathan Djanogly was privately educated at University College School in Hampstead, London before studying at Oxford Brookes University (then called Oxford Polytechnic); qualifying as a solicitor in 1990. He is independently wealthy, with shareholdings in excess of £60,000 in 18 different companies, including Imperial Tobacco and BP. His shares are worth at least £1,170,000 in total.

History

SJ Berwin lobbying allegations

Djanogly was a corporate partner in leading international law firm S J Berwin until leaving in late 2009 to focus on his political career as he was "confident enough in the outcome of the election".[5] In 2009, SJ Berwin "seconded" a trainee solicitor to work in Djanogly’s parliamentary office - an appointment subject to criticism as SJ Berwin lobbies Parliament on behalf of the private equity industry.

In January 2009, Spinwatch, the pressure group for lobbying transparency, accused Djanogly of withholding information from the electorate and parliament about his business activities.

According to The Guardian, SJ Berwin says it led the lobbying by the private equity industry on a business bill in 2006. Djanogly was leading the Tory opposition on the same bill. In a newsletter for clients, a SJ Berwin lobbyist said: "We are lucky to have the inside track - our partner, Jonathan Djanogly is shadow minister for trade and industry and will be leading on the bill opposition as it makes its way through the Commons."

Djanogly told the Guardian: "I do not conduct lobbying on behalf of myself or SJ Berwin LLP and I have not been lobbied by SJ Berwin LLP in relation to the Companies Act or other legislation." SJ Berwin said last night that it lobbied unpaid for the private equity trade body on the bill.[7]

Expenses row

In July 2009, it emerged that Djanogly had claimed more than £13,000 from his parliamentary expenses to employ a Polish student under the auspices that she was cleaning his designated second home in his constituency of Huntingdon three days a week. He claimed an average of £400 per month for cleaning. However, Djanogly admitted the cleaning money was her only income; and that she had on occasion looked after his children. Djanogly agreed to repay some £25,000, including money spent on cleaning and gardening. His repayment was not, he maintained, acknowledgement that his arrangements had been improper, but rather "in recognition of my part in Parliament’s collective failure to address the expenses system".[8]
Spying on colleagues

In September 2010, Djanogly admitted to hiring private detectives to investigate the views of local Conservative activists. He paid the "intelligence-gathering organisation" Morris Chase International £5,000 to ascertain the views of his colleagues. The firm was directed by Djanogly to carry out "discreet inquiries under the pretext of writing a newspaper article", tricking several individuals into revealing their concerns about the MP. Djanogly received the findings in a private document sent to him in July 2009, including mention of aides who believed him to be a poor politician who had lied about his expense claims - he had paid in excess of £13,000 for a cleaner who also worked as au pair to his children. Morris Chase maintain that no laws were broken during the course of the investigation. Director Michael Morris commented that "All the information obtained for and reported to Mr Djanogly was developed legally. The use of pretext is legal as long as the requirements and principles of the Data Protection Act are adhered to".

Former Huntingdon douncil leader Derek Holley was one of those targetted. He called for Djanogly to "consider his position" in government; adding "Nobody approached me as a private detective, so if they approached me it would have been with some subterfuge. I'm angry because I am an upfront sort of guy and I would have rather he came up to me directly and asked me and I would have said yes or no". David Cameron's spokesperson said the Prime Minister had full confidence in Djanogly, and that "The PM will judge him on his performance as a minister. [Djanogly] has said himself that with hindsight he may have overreacted".[10]

Conceding that he had, indeed, overreacted, Djanogly remarked:

"Following a series of malicious allegations made against me in newspapers last year, I felt I had to act to find out who was spreading these untrue stories. I instructed a firm of private investigators to try to find out the source of these stories because I was extremely upset that my private family life had been invaded... I am sorry if some people judge that I made a mistake. With hindsight I can see that I may have overreacted, but I was being subjected to very malicious, anonymous attacks on my family."

www.powerbase.info/index.php/Jonathan_Djanogly

[nickd]

Well, it's hardly the first time Mr Djanogly has faced trouble, what with the au pair or the cleaner, the very expensive gates, the hiring of private eyes, his expenses and now this, I'm not so sure there's enough dynamite on Djanogly yet; - and even if there were.....






Would anyone actually light the fuse?


I suspect that the profit shares over the years aren't enough, although I guess the issue is more over the question as to whether he declared an interest.

I did think it a little strange why Mr Djanogly was as keen as mustard to make sure referral fees were abolished and I have to confess to being more than puzzled as to why he was worried over people's ever increasing insurance premiums; - it being a bit of a rarity for these ministers to worry about our escalating cost of living expenses.

No, I suspect Mr Djanogly's interests go a little further and are perhaps more connected with how insurers can benefit from little add on premiums of around £45 per year to provide legal expenses; - an alternative method of funding legal enquiries - although not one which I ever envisage will extend to the provision of social welfare legal advice. It's all to do with what you call an 'ABS' or ' Alternative Business Solution', it's always good to have these legal advice 'bolt ons' as they make an insurance policy more inclusive and ultimately that makes them more appealing to those seeking a good deal.

I wonder if the Guardian reporter will be taking a closer look at Amlin PLC and it Lloyds connection, indeed I wonder if anyone has taken a close look at any of these insurance firms and whether any on them have role in insuring the ever growing of public contractors against all manner of things which can go wrong when they operate with less and less regulation by way of state control?

And believe me, with the welfare reform car crash on the horizon, there's never a better time to get yourself insured.

[jman]

Here is what the Telegraph no less had to say a year ago

"Jonathan Djanogly: 'Wet fish who has been a disaster'

Jonathan Djanogly was a “wet fish ... constantly wriggling” who had been a “disaster” as an MP, senior figures in his local constituency association told undercover private detectives.

two senior members of Mr Djanogly’s local party, including his election agent, thought he was 'lazy, with no political convictions or beliefs' By Robert Winnett, Deputy Political Editor
6:30AM BST 10 Sep 2010

Documents seen by The Daily Telegraph have disclosed that senior figures around the Conservative MP did not think he was a capable politician.

They also show concern over his ongoing employment as a partner of a law firm while still an MP and claims that Mr Djanogly had not been forthcoming over his parliamentary expenses.

The damning views are set out in a private memorandum to Mr Djanogly by Morris Chase International, an investigations company. It sets out the results of the firm’s £5,000 investigation and the deep misgivings in the justice minister’s constituency about his conduct.

It found that two senior members of Mr Djanogly’s local party, including his election agent, thought he was “lazy, with no political convictions or beliefs”. It quoted one senior figure as saying: “He [Djanogly] works very hard not to give an opinion. He sits on the fence on every issue and nobody knows where he stands on anything. He is a wet fish and is constantly wriggling on the political issues of the day.”

The person also alleged to the private detectives, who were posing as journalists: “The only reason Jonathan was elected in the first place is that his father was close to John Major and so party members voted for him as a favour to John Major. He has been a disaster and we need to deselect him.”

Mr Djanogly was elected to the safe seat of Huntingdon in 2001 after the retirement of Sir John Major as the local MP. He quickly rose to the front bench, and was chosen as the Parliamentary Under-Secretary of State at the Justice Department by David Cameron following the election. His responsibilities include legal aid, family justice and the courts system.

The minister was a successful solicitor before entering Parliament and remained a partner at SJ Berwin until shortly before the election. He has a fortune worth more than £1 million, and is the son of the textile manufacturer Sir Harry Djanogly, who has a fortune estimated at £300  million. He is married with two children.

The Conservative MP attracted controversy over his expense claims. The Daily Telegraph disclosed that he had spent thousands of pounds on electric gates for his Huntingdon home, along with cleaning and gardening for the property. He announced he would repay £25,000, one of the largest payments from any MP.

It later emerged that he had claimed more than £13,000 in “cleaning costs”, which had been paid to his au pair. The au pair spent most of the week at his London home but was paid to clean the Cambridgeshire property. Mr Djanogly denied wrongdoing..................................."

Rest at link below :

www.telegraph.co.uk/news/newstopics/mps-expenses/7993236/Jonathan-Djanogly-Wet-fish-who-has-been-a-disaster.html

[nickd]

The Association of British Insurers have produced their paper on tackling the compensation culture and unsurprisingly come out in support of the Legal Aid, sentencing & Punishment of offender's bill.

See link..

www.abi.org.uk/Publications/57764.pdf

I'm slightly surprised at why the ABI even relate their findings to a bill which is connected with legal aid; - which hasn't covered personal injury in years!

The compensation behaviour is blamed on claims management firms as well as trade unions for encouraging their members to make claims from accidents within the workplace.

The report mirrors almost word for word the government's rhetoric on diminishing the rights of claimants to make claims;- amid a sea of bureaucracy which seemingly cripples employers in having to provide their employees with safe havens.

Oh, I do wish they'd put a name to these reports, I wonder who wrote this one?

The report fails to address how it's lawyers not regulated by legal aid restrictions which seemingly have become very adept at making cash out of no win no fee remuneration; - the replacement model which replaced legal aid for personal injury cases where the claimant had insufficient funds to pay for the case.

Even stranger is how government condemned the previous administration on removing legal aid for personal injury; - I'm sure I can dig out the Hansard extract I have somewhere.

[nickd]

I note from Hansard:

defendant insurance companies since the publication of Lord Justice Jackson’s review of civil litigation costs.

Hansard source (Citation: HC Deb, 16 May 2011, c39W)

Jonathan Djanogly (Parliamentary Under Secretary of State (HM Courts Service and Legal Aid), Justice; Huntingdon, Conservative)

I refer the hon. Gentleman to the answer I gave to Robert Flello on 14 March 2011, Hansard, column 139W.

I met with the Association of British Insurers (ABI) on 29 July. During the consultation period for Proposals for Reform of Civil Litigation Funding and Costs in England and Wales—Implementation of Lord Justice Jackson’s Recommendations, I hosted three roundtable discussions with interested parties. The first, on 2 December 2010 aimed to include parties on all sides of the debate; claimant and defendant solicitors, insurers, after the event (ATE) insurers and other interested parties. I then held meetings with a group of claimant practitioners on 18 January 2011, and defendant practitioners, including insurers and the ABI on 19 January 2011.

The Secretary of State and I have regular meetings with representative bodies, covering a range of issues. The Secretary of State has not held any meetings with insurers or claimant solicitors specifically to discuss the proposed changes to civil litigation funding and costs.

The Department has received various submissions from defendant insurance companies in relation to the consultation ‘Reform of Civil Litigation Funding and Costs in England and Wales—Implementation of Lord Justice Jackson’s Recommendations’.

www.accesstojusticeactiongroup.co.uk/home/our-campaign/written-answer-to-our-parliamentary-questions

Given Mr Djanogly's close family ties, not to mention his 1/6th share dividend derived from Djanogly Family LLP and its insurance connotation, is it not just a teensy weeny bit likely that he may just have given the ABI a bit of a helping hand in drafting their response to the legal aid bill?

I wonder?

Oh surely not, I mean Mr Djanogly wouldn't dare compromise his position by crossing the threshold would he?

[nickd]

Unite the Union on Djanogly


"Government legal aid cuts mean victims lose out while multi-millionaire Tory MP gains Government legal aid cuts mean victims lose out while multi-millionaire Tory MP gains
17 September 2011

Responding to the revelations published in today's Guardian (Saturday) that justice minister Jonathan Djanogly has a substantial financial interest in pushing through the Legal Aid, Sentencing and Punishment of Offenders Bill, Unite general secretary Len McCluskey said:

“This is absolutely shocking. Djanogly, already one of the richest MPs in the House of Commons, has a significant stake in the very insurance companies pushing for changes that intended to deny vulnerable people the support to take on the powerful, the self-interested or those who have simply done wrong.

"How low is this government prepared to go? Djanogly will personally profit from denying workers help to claim for workplace injuries or industrial diseases.

“Working people who are killed, maimed, or made fatally ill because of their work will be less able to get legal representation or to recover compensation if these changes become law. Ordinary people and their families will suffer while Djanogly and his cronies line their pockets.

“The insurance industry is having a huge influence on the passage of this Bill. It stands to save billions of pounds as a result of its measures. And now we know that the minister in charge of turning the Bill into law has a direct financial interest in insurance companies’ profits. But it’s not just Djanogly that will benefit, the Tories under Cameron have received nearly £5m donations from companies with insurance interests over the last 5 years.

"At a time when ordinary people are suffering from the actions of unaccountable elites, this naked self-interest from the Tories will rightly cause revulsion."

Jonathan Djanogly, MP for Huntingdon, is a partner in insurance firm, Lloyds. The Conservative party under Cameron also received donations from numerous companies and individuals who benefit from the insurance industry, in particular Michael Spencer and his company IPGL. Insurance companies will benefit by hundreds of millions of pounds from a bill that is designed to deny much needed justice to individuals by slashing legal aid and taking fees out of compensation payments.

Unite is calling on the LibDems to disassociate themselves from Djanogly and vote against the bill progressing any further. The bill is opposed by a broad coalition, from trade unions to civil liberty groups such as Liberty, and community rights groups, all of whom fear that the changes will mean that access to the law will become a privilege of the wealthy."


www.unitetheunion.org/news__event...._cuts_mean.aspx

Read more: mylegal.org.uk/index.cgi?board=frontline&action=display&thread=474#ixzz1YS93qCx2