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CBI SET FOR EXISTENTIAL CRISIS VOTE
TUESDAY 6 JUNE 2023
ISSUE 3,990
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RESULT OF CONFIDENCE BALLOT DUE THIS AFTERNOON JESSICA FRANK-KEYES THE CBI, Britain’s decades-old business body, will find out if it has a future today after members vote on the group’s response to a string of sexual misconduct allegations. Members of the body are set to cast ballots at an extraordinary general meeting this afternoon at the outfit’s Cannon Street headquarters. They will opine on the organisation’s ‘role and purpose’ in what is effectively a no-confidence vote in the CBI’s new leadership. It comes after a wave of allegations mired the top business lobby group in scandal, with claims of sexual harassment, workplace misconduct and rape damaging its reputation. Many of the claims are so far unsubstantiated. Former director-general Tony Danker was dismissed after claims of misconduct – unrelated to sexual abuse – were made against him, while the government and Labour cancelled their
engagement with the body. Around a quarter of the organisation’s members either terminated or suspended their membership. It is believed that the results of the ballot will not be released in full, with no detail on how members voted. The meeting will last around 90 minutes, from midday, with a verdict expected mid-afternoon. The CBI last week published an outline of how their culture and processes would change, though pushed back against allegations of a ‘toxic’ or ‘misogynistic’ culture. The president of the body Brian McBride mounted a robust defence of the organisation yesterday, writing in the Financial Times that the body’s “position has been put in jeopardy.” But he insisted the CBI had listened; increased accountability structures; worked with business ethics consultancy Principia; and was en route to implementing 34 recommendations from the legal firm Fox Williams,
which investigated the claims. Urging members to back the leadership’s plan, he wrote: “Succeed and we can make a leaner, more accountable and inclusive organisation. Fail and we lose precious time to fight for our members.” Regardless of the vote, the pull-out of a host of large fee-paying members is likely to trigger redundancies. Yesterday a spokesperson for the nascent lobbying organisation BizUK said the CBI “is not able to carry out the role that its members have signed up for. “That relationship [with government] is in the deep freeze and the idea that the package set to be voted on Tuesday will change anything overnight is wishful thinking.” Last week No 10 sources told City A.M. the body’s package did not look “bold” enough for the government to re-open engagement with the CBI, but said all options were on the table if members demonstrated confidence.
CAN’T JUST STOP OIL Energy boss questions protesters’ logic EXCLUSIVE
NICHOLAS EARL ONE of the country’s most environmentally-minded energy bosses has said Just Stop Oil protestors cannot ask people “to make massive sacrifices” unless renewable energy replacements are on stream. Greg Jackson, the boss of the country’s third largest energy firm Octopus, told City A.M. “we need to
escape from fossil fuels over time, and we’ve got to accelerate that move. “If we’re going to ask society to stop using fossil fuels, we have to make the change an upgrade for people,” he added in an interview. Just Stop Oil, who are calling for an almost immediate stop to the use of fossil fuels, are disrupting transport and major sporting events in a bid to draw attention to their calls. £ INTERVIEW: PAGE 2
Privatbank’s UK fraud claim returns for trial after Ukraine conflict delays BEN LUCAS ONE of the largest high court claims in UK history is set to restart next week as the trial commences in Privatbank’s $1.9bn (£1.54bn) fraud lawsuit against its former owners. Ukrainian lender Privatbank is suing the bank’s founders Igor Kolomoisky and Gennadiy
Bogolyubov over allegations they embezzled billions of dollars from the bank through fraudulent loans to companies that were ultimately controlled by them. The pair deny the allegations. The bank, nationalised in 2016, is seeking $1.9bn plus interest, which could run into the billions. The lawsuit was filed in the
London High Court back in December 2017, and was able to be heard in the UK as some of the companies allegedly involved in misappropriating funds are UK corporate entities. The case was set to go to trial in June last year, but a high court judge decided it should be postponed by a year after Kolomoisky and
Bogolyubov argued it would be unfair to force them to fight the claim following Russia’s invasion of Ukraine. The trial is now set to take place on 12 June and is scheduled to run for 15 weeks. However, neither Kolomoisky or Bogolyubov will be giving evidence during the trial. Richard Lewis, a Hogan Lovells
partner representing the bank, said: “The bank has throughout had confidence in the strength of its claims and that it will succeed in proving that it was the victim of fraud on a massive scale.” Kolomoisky’s lawyer denied any wrongdoing. Bogolyubov’s lawyers did not respond to a request for comment.
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