Sepp Blatter. Photo: Getty
Show Hide image

Sepp Blatter re-elected as Fifa president amid corruption allegations

Re-elected for a fifth term even as his organisation is mired in a corruption scandal.

Sepp Blatter has been re-elected as president of Fifa.

His challenger Prince Ali bin al-Hussein of Jordan withdrew after the first round of voting. Blatter had fallen seven votes short of the required two-thirds majority.

After seven Fifa officials were arrested in Switzerland as part of a US corruption prosecution, Blatter has faced calls to resign, including from David Cameron.

Writing for The Staggers yesterday, Keiran Pedley argued that it's time for England to take action:

So what should we do about it? I think now is the time for the FA (and its partners in the football world) to demand action. Uefa have already asked that the upcoming Fifa Presidential elections be postponed but this is not enough. Until a full, independent, investigation into the 2018 and 2022 bids is completed and until we are satisfied migrant workers in Qatar are being treated fairly then the Qatar tournament (at least) should be put on hold. The English FA should threaten to boycott the World Cup in Qatar if this does not happen.

Last year, NS editor Jason Cowley wrote a cover story entitled "the last World Cup":

Even before the Sunday Times reported the extent of the alleged bribes and bungs used to win the vote for Qatar – such an eminently sensible choice, when you think about it, with its 50° summer temperatures and its hatred of homosexuals, alcohol and liberated women – the stench of corruption hung over Fifa. We should not forget that David (Lord) Triesman was forced to resign as chairman of the Football Association and of the England 2018 World Cup bid team for stating the obvious: the right to host the World Cup can be bought.

Getty
Show Hide image

BHS is Theresa May’s big chance to reform capitalism – she’d better take it

Almost everyone is disgusted by the tale of BHS. 

Back in 2013, Theresa May gave a speech that might yet prove significant. In it, she declared: “Believing in free markets doesn’t mean we believe that anything goes.”

Capitalism wasn’t perfect, she continued: 

“Where it’s manifestly failing, where it’s losing public support, where it’s not helping to provide opportunity for all, we have to reform it.”

Three years on and just days into her premiership, May has the chance to be a reformist, thanks to one hell of an example of failing capitalism – BHS. 

The report from the Work and Pensions select committee was damning. Philip Green, the business tycoon, bought BHS and took more out than he put in. In a difficult environment, and without new investment, it began to bleed money. Green’s prize became a liability, and by 2014 he was desperate to get rid of it. He found a willing buyer, Paul Sutton, but the buyer had previously been convicted of fraud. So he sold it to Sutton’s former driver instead, for a quid. Yes, you read that right. He sold it to a crook’s driver for a quid.

This might all sound like a ludicrous but entertaining deal, if it wasn’t for the thousands of hapless BHS workers involved. One year later, the business collapsed, along with their job prospects. Not only that, but Green’s lack of attention to the pension fund meant their dreams of a comfortable retirement were now in jeopardy. 

The report called BHS “the unacceptable face of capitalism”. It concluded: 

"The truth is that a large proportion of those who have got rich or richer off the back of BHS are to blame. Sir Philip Green, Dominic Chappell and their respective directors, advisers and hangers-on are all culpable. 

“The tragedy is that those who have lost out are the ordinary employees and pensioners.”

May appears to agree. Her spokeswoman told journalists the PM would “look carefully” at policies to tackle “corporate irresponsibility”. 

She should take the opportunity.

Attempts to reshape capitalism are almost always blunted in practice. Corporations can make threats of their own. Think of Google’s sweetheart tax deals, banks’ excessive pay. Each time politicians tried to clamp down, there were threats of moving overseas. If the economy weakens in response to Brexit, the power to call the shots should tip more towards these companies. 

But this time, there will be few defenders of the BHS approach.

Firstly, the report's revelations about corporate governance damage many well-known brands, which are tarnished by association. Financial services firms will be just as keen as the public to avoid another BHS. Simon Walker, director general of the Institute of Directors, said that the circumstances of the collapse of BHS were “a blight on the reputation of British business”.

Secondly, the pensions issue will not go away. Neglected by Green until it was too late, the £571m hole in the BHS pension finances is extreme. But Tom McPhail from pensions firm Hargreaves Lansdown has warned there are thousands of other defined benefit schemes struggling with deficits. In the light of BHS, May has an opportunity to take an otherwise dusty issue – protections for workplace pensions - and place it top of the agenda. 

Thirdly, the BHS scandal is wreathed in the kind of opaque company structures loathed by voters on the left and right alike. The report found the Green family used private, offshore companies to direct the flow of money away from BHS, which made it in turn hard to investigate. The report stated: “These arrangements were designed to reduce tax bills. They have also had the effect of reducing levels of corporate transparency.”

BHS may have failed as a company, but its demise has succeeded in uniting the left and right. Trade unionists want more protection for workers; City boys are worried about their reputation; patriots mourn the death of a proud British company. May has a mandate to clean up capitalism - she should seize it.