Last week, former employment minister Mark Hoban was sworn in by the Royal Court to begin a five-year term on the board of the Jersey Financial Services Commission with effect from 1 December.
Mr Hoban, who was the MP for Fareham in Hampshire between 2001 and 2015, has also been earmarked to become the commission’s chairman in April 2020 when Lord Eatwell retires.
Deputy Kirsten Morel said that he accepted Mr Hoban would be a ‘useful’ commissioner but should not become chairman because he has been involved in two high-profile expenses scandals, and that could harm Jersey’s reputation.
Under States regulations, Mr Hoban’s appointment was made by Chief Minister John Le Fondré, who published a report, including details of his background, on
15 October, notifying States Members of the decision. Members are given two weeks to raise objections to any appointments made in this manner.
The report says that Mr Hoban, who is the chairman of Flood Re, a specialist reinsurance firm, served as financial secretary to the UK Treasury and led the Coalition Government’s work on reforms of financial regulation following the Global Financial Crisis.
But it does not mention that he was reported on during the MPs’ expenses scandal in 2009 for claiming back £12,000 that he spent on furniture in his London flat between 2005 and 2007.
This included a £35 toilet roll holder, £10 on a chrome shower rack, £18 for a lavatory brush and £240 for eight cushions under his second-home allowance.
The report also does not mention that he hit the headlines in 2013 when it was revealed that he profited to the tune of £144,000 on the sale of a London flat that was paid for using taxpayers’ money.
MPs were banned from using Commons expenses to pay mortgage interest in May 2010 and Mr Hoban was asked to repay £11,332 because that was the estimate of the increase in value of the property from May 2010 until it was sold.
During that same period, however, he claimed £17,247 under the MPs’ allowances system towards the cost of the mortgage.
Deputy Morel said that States Members should have been made aware of his role in both of these scandals and urged the Island’s politicians to be more careful when ‘rubber-stamping’ appointments.
‘This would have gone through the Jersey Appointments Commission and the States Employment Board before being approved by the Chief Minister,’ he said.
‘It doesn’t take much involvement for someone to find out that Mr Hoban has been involved in these scandals. Any negative points should have been included in the report and they should also explain why they still think he should be appointed in spite of them.
‘He didn’t do anything illegal but he did use taxpayers’ money to pay for his flat.’
Deputy Morel said that he believed Mr Hoban’s planned appointment as JFSC chairman, which oversees the conduct of finance firms, should now be blocked because of his controversial financial history.
‘Jersey’s reputation is very important and we can’t afford to have any whiff of scandal that would taint it,’ he said.
‘He obviously has expertise and international connections, which would make him a useful commissioner, but in my view he should not be appointed as chairman of the JFSC.’
He added: I think that this also shows that States Members need to be more careful when rubber-stamping appointments. We need to do our own research and make sure that we are happy before approving decisions.’
A JFSC spokeswoman said that the recruitment process for all commissioners was ‘robust and transparent’ and involved ‘appropriate due diligence and rigorous vetting exercises’.
She added: ‘Information about Mark Hoban is in the public domain. Commissioners reviewed this information and were satisfied that it did not in any way preclude Mark from serving on the board. His experience and expertise made him the most suitable candidate for the role.
‘The Chief Minister approved Mark Hoban’s appointment and it was passed before the States Assembly without objection.’
