SNP call for an independent inquiry into former Labour MSP's £50,000 council job

Scottish Political Editor

Sunday 12 August 2012

Nationalists have demanded an independent inquiry after a former Labour minister was appointed to a £50,000-a-year post at a Labour-run council despite having two outside jobs, including one helping to manage investments in tax havens.

Tom McCabe, who holds two outside jobs as well as his new council post

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exclusive By Tom Gordon Scottish Political Editor

Tom McCabe was made a policy adviser to Glasgow City Council's Land and Environmental Services department (LES) last month ahead of 53 other applicants.

Before the appointment, McCabe was based at the council, helping Labour with its campaign for May's local elections.

Council insiders insist the 58-year-old former Hamilton South MSP, who was Labour finance minister from 2004 to 2007, was the most impressive candidate for the post.But the SNP says Labour has "serious questions" to answer and claims McCabe had an advantage over the other applicants.When McCabe was appointed he held two outside jobs, including one at an equity business based in Luxembourg requiring two days' work a month.In December 2010, he became one of four directors of the China Southern Dragon Dynamic Fund, an investment fund based in Luxembourg which trades in companies listed in Hong Kong and China.At the time, McCabe was still an MSP and he declared the work in his register of parliamentary interests, stating: "I expect to work for two days per month in this role and to receive remuneration of between £5001 and £10,000 per annum."He and his fellow directors were reappointed for another year on June 7, 2012.The fund's first accounts, published on June 13, show that by the end of 2011 it was managing a £30 million portfolio, most of it in shares and bonds.Just over half of these were in the tax havens of the Cayman Islands and British Virgin Islands.The directors shared around £35,000 in fees in 2011, despite a dip in the fund's value.McCabe is also in business for himself. Last summer he set up TAS Business Solutions Ltd. He is the sole director and shareholder.In January, he also became an unpaid trustee of Hamilton Citizens Advice Bureau, describing himself as a management consultant.The former MSP was one of 40 external applicants for the council job, which also attracted 14 internal applicants. McCabe was then one of three external applicants interviewed, alongside one internal applicant. One of those conducting the interviews was Brian Devlin, the executive director of LES, who also approved advertising the post externally.The council last week confirmed that McCabe had met Devlin in January to discuss managing waste in the city. McCabe's predecessor took enhanced early retirement in March.However, LES decided to "reinvest into this post". It denies McCabe landed a specially created job. Graeme Hendry, the leader of the SNP opposition on the council, said: "As information starts to come to light on this appointment there are serious questions to be answered by Glasgow Labour." He added: "It may be there is a case for Audit Scotland to look into whether or not this and other recent deals are an acceptable use of public money."A spokesman for Glasgow City Council said: "The post was fully advertised and a successful candidate appointed after competitive interview. "Staff are entitled to hold alternative employment as long as they comply with the council's code of conduct for employees."Last night, McCabe declined to comment.

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SNP call for an independent inquiry into former Labour MSP's £50,000 council job

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