Boris Johnson broke government rules by being evasive on hedge fund links

April 19, 2024, 11:38 a.m.

Former Prime Minister Boris Johnson broke British government rules by being “evasive” about his dealings with a company that arranged a meeting between him and Venezuelan President Nicolas Maduro, the business appointments watchdog has said.

Lord Pickles, chairman of the Advisory Committee on Professional Appointments (Acoba), wrote to Mr Johnson and Deputy Prime Minister Oliver Dowden warning them of the breach.

It comes after the former Conservative prime minister failed to clarify his relationship with a company called Merlyn Advisors, a hedge fund.

Mr Johnson reportedly met Mr Maduro alongside Merlyn Advisors co-founder Maarten Petermann in February.

Lord Pickles wrote in his letter to Mr Dowden: “Acoba has repeatedly asked Mr Johnson to clarify his relationship with Merlyn Advisors.

“He did not do so, nor did he deny media reports that he was working with Merlyn Advisors on a non-contractual basis.”

Government rules state that former ministers must not accept new jobs or appointments for two years after leaving public office without prior advice from Acoba.

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In correspondence dating back to March 18, the watchdog contacted Mr Johnson's office to ask him to detail his relationship with Merlyn Advisors following media reports of his visit to South America.

He responded that he had no contractual relationship with the company, and in subsequent correspondence stated that he had not been paid for any meetings in Venezuela.

He added: “I was extensively briefed by HMA (Her Majesty's Ambassador) Caracas ahead of the meeting and took the opportunity to lobby for democracy, human rights and support to Ukraine.

Lord Pickles raised concerns about the fact that the trip had been paid for by Merlyn Advisers and about the nature of Mr Johnson's activities for the company, even though he was not under any formal contract.

The peer warned: “If this is the case, there is a reasonable apprehension that you would act in a way that would be inconsistent with Acoba's guidelines on 'one-off' speaking engagements – which do not provide blanket endorsement for specific ad hoc advice. work.”

Mr Johnson did not respond to further questions from Lord Pickles about the nature of the meetings or his relationship with Merlyn, and said he felt there was “clearly no need to consult or research Acoba” about work.

But the watchdog's head disagreed and said it “remained a reasonable concern that you were acting for Merlyn Advisors in a capacity that would be considered consultancy work”, for which Acoba would be expected to seek advice.

He added: “Given the evasive nature of your responses, your inability to answer the specific questions asked of you or to provide context of your relationship with Merlyn Advisors, the committee found that there was a violation of government trade appointments. rules.”

Lord Pickles then reported the former Prime Minister's actions to Mr Dowden, who is also responsible for overseeing the Cabinet Office, the department which oversees the machinery of government.

He admitted there was little action that could be taken against Mr Johnson because the rules “no longer have relevance in the modern world and are inapplicable to candidates determined to ignore them”.

The Government should reform the rules as it promised in July 2023, Lord Pickles said, to ensure those who break them face consequences.