HC Deb 30 July 1998 vol 317 cc500-1W
Mr. Gareth R. Thomas

To ask the Secretary of State for Culture, Media and Sport what was the size of the CCPR's legal costs arising out of the recent fraud trial; and how these costs will be funded. [52913]

Mr. Banks

Details of the expenditure and income of the Central Council of Physical Recreation (CCPR) are published in the CCPR's Annual Report and Accounts.

In the year ended 31 March 1996, the CCPR incurred exceptional legal and professional costs of £240,522 in connection with investigations prior to and following the termination of certain employment contracts in 1995. The CCPR claimed the majority of these costs as an additional contribution from the English Sports Council (ESC) under the Heads of Agreement of 17 May 1972.

£228,923 in respect of these claims was paid by the ESC to the CCPR as additional income. The ESC has subsequently stated it currently regards £164,474 of this contribution as an advance of future funding. A working party of representatives of the CCPR, ESC and Department for Culture, Media and Sport, chaired by the latter, is currently reviewing the investigation. Following this review, the ESC will determine the extent, if any, to which it may require repayment of the £164,474.

In the year ended 31 March 1997, the CCPR incurred further exceptional legal and professional costs of £113,895 in connection with these investigations. Most of this, at this stage, has not been funded by the ESC.

Mr. Gareth R. Thomas

To ask the Secretary of State for Culture, Media and Sport what new controls have been introduced by the Central Council for Physical Recreation to prevent a repeat of major fraud incidents. [52914]

Mr. Banks

The Central Council of Physical Recreation (CCPR) set up an Organisational and Services Review Group and have agreed seventeen recommendations for changing the corporate structure and working practices of the CCPR. A second stage of the Review has now started to oversee the detailed implementation of the recommendations and manage the transitional arrangements.

Alongside this, the CCPR, English Sports Council and Department for Culture, Media and Sport, have been working together and with advisers to review and provide recommendations for detailed improvements to the CCPR's internal control systems and enhance corporate governance and accountability.

As my hon. Friend may be aware, even sound systems of internal control may not be proof against collusive fraud.