Guernsey’s Economic Development President, Deputy Peter Ferbrache, has quit his post in government after concerns were raised over a conflict of interest involving £300,000 of States spending with a local firm.
Deputy Ferbrache is a consultant with Law firm Ferbrache & Farrell which has earned the money for work carried out on behalf of the Office of the Public Trustee.
The Public Trustee has also quit her post. It’s emerged she should have sought approval from the Economic Development Committee if spending on a case is likely to exceed £20,000.
On Tuesday this week, the Policy & Resources Committee received a briefing from the four members of the Economic Development Committee and the Chief Secretary to that Committee in relation to a case taken on by the Public Trustee, the oversight of whom is undertaken by the Economic Development Committee.
They confirmed Ferbrache & Farrell has to date been paid £300,000 from the public purse as a result of work carried out for the Office of the Public Trustee.
In a statement, the Economic Development Committee said: “Regular financial monitoring picked up the increased spending. This information was then acted upon by staff working in the Committee office.”
“Having received a briefing from the members of the Committee and the Committee’s Chief Secretary, the unanimous view of the Policy & Resources Committee was that the circumstances could give rise to the perception of a potential conflict of interest for Deputy Ferbrache.”
The Economic Development Committee will now ask the Internal Audit team to carry out an independent review into all circumstances surrounding the case taken on by the Public Trustee.
Deputy Peter Ferbrache said: “Several weeks ago, it was mentioned that Ferbrache and Farrell, a law firm of which I am a consultant, not a partner, was acting for the Public Trustee in a particular matter. I was personally not involved in that, either politically or legally. So I always steered clear because of course I’m well aware of the rules of conflict.”
