§ Lord Berkeleyasked Her Majesty's Government:
What are the rules governing the award of contracts by London Underground to organisations in which relatives of senior staff have an interest. [HL3367]
§ Lord WhittyFor appointments to the LT Board, as with any ministerial appointments to public bodies, all candidates, whatever the source of their application, are asked to declare any potential conflicts of interest as early as possible in the scrutiny process. If it appears that a possible conflict exists or may arise in the future, this is explored fully with the candidate to establish whether it is sufficiently significant to prevent candidates carrying out the requirements of the post.
Should any relevant changes to the appointee's situation or connections arise during the period of the appointment, there is the same obligation on appointees to inform LT and the Department. In addition there is a formal, annual review process.
London Transport's Business Ethics Policy covers all staff and makes it clear that employees of LT and its subsidiaries must not use their authority or position for personal gain, or against London Transport's interests.
The Business Ethics Policy requires all staff to inform their employing manager or director in writing if they have any personal interest which might affect, or could be seen to affect, their impartiality or that of any other employee, (e.g. dealing with suppliers, customers and other parties doing, or seeking to do, business with LT; ownership of securities in any company with which LT has a current or potential future business relationship; direct or indirect (family) company share holdings, holding paid or unpaid external positions).
In the event that a manager or director has or could be seen to have a conflict of interest with a potential supplier, there is provision for both the invitation to tender and award process to be personally approved by the Head of Commercial Group or an independent director.