The Guardian is publishing a major report into the Peverel / Cirrus price-fixing scandal in tomorrow’s newspaper.
It is written by Patrick Collinson, the personal finance editor, and will appear on the front cover of the stand-alone Money section.
It is understood that the report gives the background to the sham tendering that Peverel engaged in, and the disgraceful decision by the Office of Fair Trading to do a leniency deal with the company.
The scandal inevitably raises questions over Andy Davey (above), former head of Cirrus, who is now Peverel’s director of business excellence.
Everything about this OFT inquiry is scandalous. It is almost as serious as the cheating undertaken by Peverel.
The OFT was either suckered into accepting a leniency deal with Peverel in December 2009, or complacently went along with the fiction that Peverel had somehow “turned itself in”.
The demonstrable truth is that Peverel owned up to the practices because it had been rumbled.
The Cirrus scam had even been outlined in the Times on December 4 2009.
Then the inquiry only got underway in April 2011 – 16 months after Peverel supposedly turned itself in.
In a final display of confidence-sapping cleverness, when the OFT announced its findings last Friday it declared that the stooge companies involved in the price fixing cartel would be fined £53,410.
It did not mention that Peter O’Rourke Electrical based in York went into liquidation in June 2012, and Glyn Jackson Communications based in Leeds went into liquidation in September 2012.
As for Owen Installations, it settled up last February and only paid a “settlement” of £1,777, “thereby benefiting from a settlement discount”.
The company is based in Weymouth and is directors are Jeremy David Owens and Joanne Owens. Its registered business address is a residential villa belonging to the firm’s accountants.
Related posts:
Private Eye reports Peverel price-fixing scandal
Guardian covers more fall out from Peverel’s price-fixing scam with Cirrus Communications
The Oldie reports Peverel / Cirrus price-fixing scandal
OFT will report on the Peverel / Cirrus price-fixing scandal on Friday
Fury as OFT may give Peverel immunity over Cirrus price-fixing scandal
Three MPs tell Entwistle to pay up more over Peverel / Cirrus scandal, or accept binding mediation
Sebastian/Ken/Susan/Michael/Mike/Friends
What a farce we have with the Office of Fantasy Tendering, OFT where they spend £5000,000 on an investigation into what is a very serious crime, that of Cartels’ and Price Fixing/Tender Rigging.
They received information from Ken in November 2009 and pass it on to the Office of Fantasy Tendering on the 01/12/09 just before the Times Newspaper outs them for Anti- Competitive Tendering, Price Fixing/Tender Rigging.
We have been informed that Cirrus Communications, now CirrusUK would think of a number and then double it. They knew the cost of purchase and installation of Warden Call Systems as they had been installing them for years. As O`Rourke, Owens and Jackson would make up the tender price Cirrus Communications would then bid 15% to 18% lower than any of their bids knowing they would win the OEN COMPETATIVE TENDERS.
A Mr Andrew Davey joined Cirrus Communications in October 2002 as the Operation Director, in 2002, and then in November 2009 he was appointed Managing Director of Peverel Business Technology Division, and in September 2012 was elevated to Director of Business Excellence.
We know that both O`Rourke and Jackson were based in Yorkshire and we think that AD was from Leeds. We do not know if they knew each other before the start of 2005 when the first Price Fixed contracted commenced?
We do know that O`Rourke undertook the first of 7 Price Fixed contracts in 2005/06. The first Price Fixed contract commenced in November 2005 and 5 more contracts were undertaken by O`Rourke before Jackson undertook their first in March 2006?
We also know that Owens were to undertake their first Price Fixed contract in November 2007 and continue until November 2009 just a month before Peverel Group handed themselves in, when some one found out about the Price Fixing?
Only Owens Installations still trades along with CirrusUK
The cost of these Price Fixings are as such:
£500.000 Cost of Investigation
£700,000 potential costs 50% of actual costs
£100,000 in fines
The £500,000 and the potentially added £700,000 are costs incurred by Residents/Pensioners. The £100,000 in compensation is only 10% of what the Residents/Pensioners should receive as the contracts were not valid? All the fines will not be paid as two of the companies are no longer trading?
What will we see of this money if Peverel Group have their way?
£1,777.00 from the total fines of £53,410.00 and £100,000 in compensation from a total cost to us tax payers/pensioners of £1.9 million.
We/Those at each of the developments on average will have paid possible £8,000.00 each for the cost of the investigation and receive £1,538.46 in compensation.
OFT, is this what you are in place to allow the Residents/Pensioners to be ripped off by Major Company’s who are seen as above the law?
Chas,
In the long term the supine efforts of the OFT (LVT) Upper Tribunals and trade bodies such as ARMA will go a long way to prove that leasehold is a broken model and affords leaseholders virtually no protection. . When the OFT talks of enforcement, i have to ask what kind of enforcement is it that does not require a penalty, or even insist on refunds being paid?
For managing agents that boast membership of ARMA, what possible credibility does that give, if Peverel are deemed fit members to use ARMA accreditation?
I think a good way forward is for the individual sites to bring individual actions against Peverel/Cirrus Gangs…. I am sure that in light of the admission of wrong doing there will be scores of lawyers who will take these cases on, on a no win no fee basis….. it is easy money for the legal profession.
I think that will keep ARMA/Office of Fantasy Tendering ( I like that analogy Chas) and the rest of ‘the establishment’ on their toes for a while and who knows what else will be uncovered whilst in this process….
Thanks Karen
I studied in my youth The Law of Contract, as I worked as a Contracts Manager and taught the subject at 1st year Degree/Professional Level. The contract between Cirrus Communications Services Ltd and any of the 65 Developments is Fraudulent Misrepresentation which Peverel Group had admitted too.
Fraudulent Misrepresentation:-
Where a statement is made fraudulently there is a tort of deceit, and an action for damages will lie at the suit of the person who has been misled.
Remedies for Fraudulent Misrepresentation.
(a) affirm the contract, or
(b) disaffirm the contract
1. take no legal action
2. bring an action
The Law of Contract is established where parties have reached an agreement:
a) agreement
b) intention
c) consideration
If any of the above is missing then there is no contract???
The intention was to defraud by price fixing so the result will be damages not Good Will Payments???
Consideration is monetary and here they were allowed to offer over the true cost as there was no competition as the Tenders were Rigged.
I think a call to a no win – no fee solicitor would be time well spent and then let dog eat dog as they say…. you can sit back and smile. We all know there is a case for compensation here, it is just a matter of getting a good solicitor on board to evaluate how much each individual can claim….. 🙂
Chas,
I spent my youth chatting up girls, getting drunk and listening to pop music. You studied Contract Law How Sad! But how unlucky for Peverel.