Harrison resigns as A4e audit launched
A4E has brought in law firm White & Case to carry out a review of the organisation’s methods in the wake of founder Emma Harrison’s resignation.
Ms Harrison left A4e over the weekend following a week of intense scrutiny about the company.
She had already stepped down from her role as the Government’s ‘family champion’ following the revelation that four people had been arrested on suspicion of fraud at the employment services firm and government contractor.
In a statement published on A4e’s website yesterday, chief executive Andrew Dutton said Ms Harrison was no longer a director or chairman of A4e, meaning she can no longer take part in board meetings.
“The governance of A4e has therefore changed with immediate effect and decisions relating to future dividend policy will be determined by the board under a new, independent non-executive chairman,” he said.
“In addition, Emma’s salary and payments made by A4e in respect of Thornbridge Hall have ceased.”
Ms Harrison has come under fire for being paid millions of pounds in dividends by the organisation.
Mr Dutton added: “As a responsible business we take any allegation of malpractice and maladministration very seriously. Crucially, there have been a number of erroneous reports in the media, to which we will respond in due course.”
He said White & Case had been brought in to “reduce speculation and uncertainty” in A4e’s business.
The firm will lead the independent audit of A4e’s controls and procedures in collaboration with the Sheffield-based company’s funders, including the Department for Work and Pensions.
Mr Dutton said: “I have asked White & Case to carry out their review as quickly as possible. It is of paramount importance to myself and the A4e board that the ongoing press speculation is laid to rest as quickly as possible, and I believe this independent review will answer the concerns raised over recent weeks.”
“This audit has been welcomed by the DWP and individual MPs, including Margaret Hodge. Any further complaints or allegations made and submitted to A4e will be automatically referred to White & Case for their consideration.”
A4e is one of the biggest providers of government-funded welfare-to-work programmes. It describes itself as a “social purpose company” with much of its income coming from government contracts managing programmes that help people access training and get back into work.
