Provider ‘dismisses’ CEO as regulators question governance and oversight

Brian Jones, who led the Partnership of East London Co-operatives for around two years, left the organisation at the end of April.

PELC has been under scrutiny from the Financial Conduct Authority and the Care Quality Commission, relating to concerns around its governance.

PELC’s council, or board of directors, told HSJ in a statement last week: “We can confirm that the CEO was dismissed as of 26 April and the organisation is working with the Financial Conduct Authority and the CQC to ensure high-quality services continue.”

No further details were provided about the reason for Mr Jones’ departure. A representative on his behalf toldHSJ the FCA investigation has nothing to do with him, and neither did “any other investigation”. They added that Mr Jones is “not under investigation and has not been contacted by either organisation”, and that whilst employed by PELC, Mr Jones “acted to uphold the highest standards of governance at all times”.

As reported last month, the FCA sent a warning letter to PELC on 15 April around a failure to file annual accounts for 2018-19 and 2019-20, saying it was “therefore minded to consider prosecution of the society and/or its officers (directors) before the magistrates court”. The FCA oversees the registration of co-operative societies.

HSJ has also now learned the CQC  issued a warning letter to the provider on 29 April, saying it was failing to comply with regulations about good governance, including around financial monitoring.

This letter referred to 12 breaches of regulations, including a lack of “effective systems and processes to monitor the service, including relevant areas relating to finance”.

The letter added that although council members chaired governance meetings including the financial oversight group, when interviewed they “did not appear clear on the purpose of these meetings, and did not demonstrate oversight of decision made or the current status of the organisation”.

The CQC said PELC’s structure “mandated specific requirements relating to decision making” but “we noted that the organisation’s council was making decisions that it was not authorised to make”.

Mr Jones had been with PELC since being made chair of its council in 2017, according to its 2017-18 quality accounts. Accounts for the following year said Mr Jones was made chief executive in 2018 as part of efforts to develop a “strong leadership team” in response to one of its urgent care centres being put in special measures by the CQC in August that year.

The CQC reinspected the centre six months later, re-rating it as “good”. The CQC report highlighted the role of the new leadership team in the UCC’s change of fortunes.

PELC has now appointed an interim chief executive, Chad Whitton, who was previously Newham Clinical Commissioning Group’s chief finance officer and interim CEO of the Waltham Forest GP federation.