Chief Minister concludes response to Principal Auditor’s 2018/2019 Report

Chief Minister Fabian Picardo today concluded his response to the former Principal Auditor’s 2018/2019 Report, focusing on three main areas: the issue of former police officers described as “whistleblowers”, sections of the report accepted by the Government, and proposed amendments to the motion before the House.

Whistleblowers

The Chief Minister addressed the Auditor’s commentary on the transfer and ex-gratia payments made to former Royal Gibraltar Police officers.

He reiterated that these payments were lawful, properly authorised, and supported by the findings of independent investigations led by officers from the Police Service of Northern Ireland, reviewed by the National Crime Agency, and examined by a King’s Counsel. All concluded there was no criminal conduct or case to answer.

Mr Picardo criticised the Auditor for revisiting matters already investigated and clarified that the Royal Gibraltar Police had confirmed no new evidence justified reopening the case. He added that the transfers were in line with established practice and, in some cases, initiated by the Commissioner or Deputy Commissioner.

Accepted Findings and Corrective Action

Mr Picardo reaffirmed that the Government values fair and accurate scrutiny and will act on constructive recommendations.

He outlined several areas where recommendations have already been implemented or are in progress:

• Housing: Introduction of direct debit facilities has improved rent collection and helped reduce arrears. The Government has also accepted the Auditor’s recommendation to codify ministerial discretion on housing allocations to enhance transparency.

• Housing Enforcement: Measures have been strengthened to recover arrears on parking, sheds and berths, including repossessions and suspension of permits.

• Gibraltar Industrial Cleaners Ltd: Legacy inefficiencies have been addressed through a new collective agreement signed in early 2025, projected to save approximately £685,000 annually by abolishing excessive overtime and reforming staffing structures.

• Procurement Practices: While rejecting claims of impropriety, the Government accepts the need for clearer documentation of lawful exemptions. New regulations have been introduced to clarify procedures following Gibraltar’s departure from the EU.

• Environment Department: Additional staff have been appointed to reduce overtime expenditure.

• Overtime Controls: Revised approval and management rules were implemented by the Chief Secretary on 29 April 2025.

• Business Continuity and Risk Management: Work continues on updated guidance and ISO standards, supported by the Civil Contingencies team.

• Public Audit Legislation: The Chief Minister noted cross-party recognition that Gibraltar’s audit laws require modernisation, highlighting that this need has existed since 1997.

• Attendance and Punctuality: Circulars issued by the Chief Secretary in July 2025 are gathering updated departmental information to ensure consistent monitoring across the public service.

Amendment to the Motion

The Chief Minister tabled an amendment reaffirming the Government’s view that the Auditor’s report, while providing a clean bill of health on public accounts, contained serious errors and exhibited bias beyond the remit of an Auditor.

The amendment formally rejects specific sections of the report — including those on housing allocations, procurement, Gibraltar Industrial Cleaners, Wildlife (Gibraltar) Ltd, the Gibraltar Savings Bank, and various ex-gratia payments — as inaccurate, procedurally unfair or constitutionally unfounded.

It also calls for the Government to publish a counter-report addressing these matters in full, supported by legal opinions and correspondence referenced during the debate.

ENDS