Did Murphy follow UK Corporate Governance Code in NIW appointments?
02 February 2011
TUV Leader Jim Allister has raised fresh questions about the appointment by Conor Murphy of Dublin based Padraic White as Chairman of NI Water. Having previously had a FOI request on Mr White’s attendance refused by NIW and last week* having set out the vast range of other posts already held by Mr White, the TUV Leader has now asked if the UK Corporate Governance Code was followed in the appointment of Mr White.
In a statement Mr Allister said:
“The UK Corporate Governance Code and its principles ought, as a matter of good practice, to have been applied in the appointments made by Minister Murphy to NI Water. One of its main principles is that all directors should be able to allocate sufficient time to discharge their responsibilities effectively.
B.2 Appointments to the Board
Main Principle
There should be a formal, rigorous and transparent procedure for the
appointment of new directors to the board.
B.3 Commitment
Main Principle
All directors should be able to allocate sufficient time to the company
to discharge their responsibilities effectively.
Code Provisions
B.3.1 For the appointment of a chairman, the nomination committee should
prepare a job specification, including an assessment of the time
commitment expected, recognising the need for availability in the event
of crises. A chairman’s other significant commitments should be
disclosed to the board before appointment and included in the annual
report. Changes to such commitments should be reported to the board
as they arise, and their impact explained in the next annual report.
B.3.2 The terms and conditions of appointment of non-executive directors
should be made available for inspection. The letter of appointment
should set out the expected time commitment. Non-executive directors
should undertake that they will have sufficient time to meet what is
expected of them. Their other significant commitments should be
disclosed to the board before appointment, with a broad indication of
the time involved and the board should be informed of subsequent
changes.
“What was the time commitment required in the job description, did it specify availability in the event of a crisis, did it require disclosure of other significant commitments and were those made before Mr White was appointed? Did Mr White’s letter of appointment set out the time commitment required of him and did he declare all his other commitments and the time they consumed?
“These are some of the unanswered questions which Murphy has been dodging in the aftermath of the winter shambles at NIW. Even within a regime where there is no effective ministerial accountability, it is time Conor Murphy came clean on how and why he appointed Mr White and his Sinn Fein colleague, O'Muilleoir, and others to the Board of NIW and whether he made any attempt to follow due process.”
* http://www.jimallister.org/default.asp?blogID=2217
