Janet Entwistle, the Peverel chief executive, won’t increase the compensation – Peverel terms it ‘goodwill’ – offered to sites that were likely to have been cheated in the price-fixing scandal.
Her decision is made in reply to Sir Peter Bottomley – copied in to LibDem Cabinet minister Ed Davey and Labour MP Jim Fitzpatrick – who last week urged her to increase the compensation to “beyond 25 per cent” of the total sum involved, or to accept mediation.
Entwistle repeats her regret that the scandal occurred and her view that “these practices were completely unacceptable”.
“As you will appreciate in the course of their investigation the OFT has had full disclosure of and access to all our information. The OFT made no finding of whether there was any over-payment for work carried out but we do accept the OFT conclusion that it is likely there was some over-payment for the systems that were supplied and installed by Cirrus. We can’t know what the price would have been without collusive tendering, but we have decided to make a goodwill payment to the contingency funds of affected developments of 10% of the price of any resulting work. We consider this to be an appropriate amount.
“I am pleased to see that you support mediation as I believe that greater use of mediation would be beneficial in many leasehold issues and is something we would generally support. However, the OFT which is an independent body, established by Parliament has made a decision following a four-year investigation, during which we have made all information available. With that in mind I do not believe mediation is appropriate here. I appreciate the concerns you have raised and I would like to offer reassurance about how Peverel Group does business today.”
Entwistle’s full reply is here:
Peter Bottomley Reply – 18.12.13
She also forwarded to Sir Peter, Peverel’s Customer Charter and Code of Conduct.
Do you think for the slightest moment that as a result of your letter, we are going to say “Fair enough, that is it, we accept your decision?”
Have any of your advisers had the courage to tell you “Do this Janet and there will be a reaction We are getting into deep trouble over this?”
Check out Campaign against retirement leasehold exploitation for replies to Janet Entwistle.
This proves beyond any doubt that she is not the person to lead this company. Those with any amount of PM experience will know that it is entirely possible to assess the scope of the installation and arrive at a cost of installation, which you then adjust back to the time of installation, using anything from tender price indices to evidence from experienced installers. This has always been this lot’s problem, they ceased doing property management in 2000 and because a money grabber with staff who know little about PM.
If you look at management jobs offered by Peverel, you will see they ask for candidates to be experienced in the property management industry and preferably be members or the IRPM.
Janet Entwistle was appointed CEO without any property management experience by Electra /Chammonix. Indeed Miss Entwistle says she has a lot to learn in her very first statement.
Incidentally, it appears she failed to disclose that she has put money into Peverel, charged at 9% interest. We are told Electra/Chammonix bought Peverel out of administration. Yet we now find Peverel are paying the purchase price back to the new owners and in addition are paying interest rates of between 9 and 15%.
It would be my contention, that the “buyout” was only meant to serve as a vehicle to prevent Peverel being liquidated and allow Vincent Tchenguiz to buy the company back. Remember, the business model requires both freeholding and managing companies to be connected to succeed.
Within days of failing to buy back Peverel, Tchenguiz bankers ordered a sale of his property portfolio.
Electra/Chammonix have been left with a company they never expected to still own. Thus the price fixing was not a factor, as they fully expected Tchenguiz to own the company long before the OFT report.
Good grief.! What a load of fluff. It sounds like a Christmas bonus staff at Perivale might get for a job well done.
Own up, Pay Up and then Don’t do it again.
Ps Note she & Her staff have been paid during the 4 years she refers to whilst those on receiving end had to contend with stress, loss of money and sleepless nights for over 4 years.