Sanctuary Group’s new chairman, PwC (PricewaterhouseCoopers) and corporate Britain
October 6, 2014 6 Comments
As the Sanctuary Housing Facebook page continues to regularly delete large numbers of complaints (many of them serious and long-standing, others complaining of Sanctuary Housing Association’s general incompetence and/or fascist tendencies in one way or another) all appears to be well at the top of the corporate world of Sanctuary Group.
Last month it was announced that Jonathan Lander, a former senior partner with internationally huge accountancy firm PricewaterhouseCoopers (PwC), is the new group Chair. Smiles from Mr. Lander and Chief Executive David Bennett in the press release, it’s all jolly good news. Bennett said: “Sanctuary is known for its exemplary governance (many tenants will be asking what planet he’s on – the organization on the front line is often a total shambles at best) and these new appointments ensure the group board continues to have the skills and experience required to oversee our complex organisation.”
Lander said he was “enthusiastic” about working with Bennett and the board “to deliver customer-focused services that represent real value for money”. There’s a good few thousand elderly, disabled and vulnerable people who are being badly ripped-off (or who have been abused in other ways) by Sanctuary who might have something to say about that last comment. Please see other blogs here for many personal accounts, details and newspaper reports of overcharging, nationwide abuse and neglect, cheating, bullying, lies, bad services, incompetent contractors and substandard properties left to rot for years.
On 2nd October, there was further shuffling at Sanctuary with the appointment of Elwyn Roberts (also ex-PwC) as the new Chair of the Sanctuary Audit Committee. Steve Wood, head of Sanctuary Care resigned the following day, Sanctuary now has him listed as Director of Property.
As can be seen in Sanctuary Group’s financial statement for 2013-2014, PwC are Sanctuary’s independent auditors. Hang on a bit… two ex-PwC men are now at the very top of Sanctuary, Lander having been a senior partner until 2008. Exactly how independent is that?
PwC (PricewaterhouseCoopers) is one of the Big Four accountancy firms who between them carry out around 90% of all audits for FTSE 350 companies. They are absolutely massive in the UK (see pwc.co.uk), America and internationally. “In the 2014 financial year, PwC firms provided services to 417 companies in the Fortune Global 500 and 462 in the FT Global 500… For the year ending 30 June 2014, PwC’s gross revenues were US$34 billion, up 6%.” (see pwc.com). However, in 2011 they were heavily criticized by the House of Lords for not drawing attention to the risks that led up to the banking meltdown in 2008:- “It may be that the Big Four carried out their duties properly in the strictly legal sense, but we have to conclude that, in the wider sense, they did not do so.” PwC were particularly singled out for not drawing attention to the risks of the Northern Rock business model.
In 2012, the Accountancy and Actuarial Discipline Board (AADB) of the UK fined PwC a record £1.4m for “very serious” misconduct over its audit of JP Morgan Securities. At the time it was the heaviest fine ever given to a professional accountancy firm in the UK. Some comments on the above article:- “Auditors are so conflicted in their relationship with clients it is a joke.”, “Add at least one zero to the fine and it might start to be meaningful.”, “The elites are just letting themselves off… Theft!!”.
Corrupt and wrong, too big, too greedy. And, as revealed in The Great Tax Robbery: How Britain Became a Tax Haven For Fat Cats and Big Business by former tax-inspector Richard Brooks, unlikely to change. When the government (and opposition) considers any change in financial law, it consults PwC as part of the process.
Current questioning of PwC integrity in recent over-estimation of Tesco profits by £250 million
Right now, the integrity of PwC is once again being questioned in an ongoing investigation by the Financial Conduct Authority. “PwC has been Tesco’s auditor for over 30 years. For that service, Tesco paid PwC £10.4m in the last financial year – plus another £3.6m for other consultancy work. Of the 10 directors on the supermarket’s board… two are ex-PwC… Mark Armour, a non-executive director, and Ken Hanna, chair of the company’s own audit committee.”
Sanctuary Group – an exempt registered charity rip-off and everything that is wrong with greedy and hypocritical corporate Britain today
Sanctuary Group is very fond of telling the world how successful it is, particularly financially. “The 95,000-home landlord has reported one of the highest levels of gearing – borrowing in relation to assets held – in the sector… ‘in line’ with the landlord’s business plan and treasury policy. The landlord reported a surplus of £42.6m, down from £54.5m, from a turnover of £592.3m and built 1,481 new homes during the year.” (Inside Housing 1.10.14) There had been earlier reports of a £72 million surplus last year but this apparently included assets from the takeover of Cosmopolitan, which I believe have since been discounted. No doubt PwC are doing their job, legitimately or otherwise.
The privitization of housing stock has happened quietly over the last thirty years and more. Large housing associations have become greedy money-making machines. All Sanctuary care about is money and building their property empire, make no mistake. They are right in there at the heart of the government, the financial establishment and even the Church of England. Local councils also seem to be quick to support Sanctuary, rather than those suffering as a result of their countless bad practices – in fact Sanctuary seem to be good at buying off all sorts of people. The publicity machine is often grotesquely dishonest. Sanctuary are a classic example of the amoral screw-you capitalism that has gradually taken hold over the last 10-15 years. They do some good, offer some good services and help some people and communities – one would hope so with the millions of pounds they have and 11,000 staff. However, if more Sanctuary tenants were middle-class – with money to defend themselves (few Sanctuary tenants now qualify for legal aid) and/or with better education and/or more self-respect – Sanctuary would not last 5 minutes. There would be an outrage, as there should be right now.
To anyone out there who has been genuinely helped by Sanctuary – great stuff, you might be wondering what the fuss is about. All things considered though, this shambolic, scandalous, useless, uncaring, arrogant, rip-off corporate monstrosity of a company should be shut down immediately.
Fully supported by the government, Sanctuary’s tax-free, registered charity, “business model” stinks. Sanctuary are the lowest of the very low for making massive profits while continuing to abuse and exploit many poor and vulnerable people in our society.
(Chief Executive David Bennett was made a CBE for services to social housing in the 2015 New Year’s Honours list – an absolute disgrace.)