New &#39;revolving doors&#39; row as G4S hires ex-mandarins

Recruitment of former top civil servants sparks concern over links between Whitehall and defence companies

A security company has recruited two former senior civil servants, sparking an outcry about the "revolving door" between Whitehall and the company.

G4S, formerly Group 4 Securicor, hired Dr Peter Collecott, the one time director of corporate affairs at the Foreign Office, and David Gould, the Ministry of Defence's former chief operating officer in charge of defence equipment, according to a government report.

The company, whose guards are under investigation over the death of deportee Jimmy Mubenga, supplies armed guards for embassy staff around the world. It has recruited former ministers including Lord Reid as well as senior figures in offender management.

The disclosure comes two weeks after Sir George Young, the leader of the Commons, said he would examine the "revolving door" between Whitehall and defence companies.

Denis MacShane, the Labour MP for Rotherham, called for a closer examination of civil servants before they are allowed to take private sector roles that may overlap with their former public duties.

"There is great excitement over politicians and outside interests but the real issue is the gilded path from Whitehall where billions of pounds worth of public spending decisions are made into employment with companies that gained from such contracts and contacts," he said. "We need new rules so that anyone in public service cannot go straight into employment with companies to which they previously awarded contracts."

Harry Fletcher, the assistant general secretary of the probation union Napo, who has been critical of the way G4S has recruited senior civil servants from the Home Office, said: "Appointments such as these give G4S a commercial advantage over their rivals and will encourage others to go down the same route."

The appointments are listed in the latest report from the Advisory Committee of Business Appointments, released earlier this month.

Collecott, 60, was the ambassador in Brazil from 2004 to 2008. He was a member of the Foreign Office's senior leadership forum that brought together the most senior heads of mission overseas.

G4S said he has worked for their company on two separate domestic projects ? once in 2009 and again this year, a contract which ended in September. The company has declined to explain the nature of the project.

Gould, the MoD's former chief operating officer of defence equipment and support ? which put him in charge of billions of pounds worth of procurement contracts ? took up a consultant post with G4S last year. He left the MoD in 2008, and has also had roles at Selex Sensors and Airborne Systems Ltd.

A spokesman for G4S said he worked on a specific project with G4S in 2009.

Last month, G4S prompted an outcry by hiring Philip Wheatley, the former director general of the National Offender Management Service. Wheatley's G4S role, which he takes up just as Ken Clarke launches a plan to privatise much of the probation service he managed until June, has been criticised by probation unions.

Wheatley's appointment is part of a pattern of G4S lobbying over probation privatisation. The company paid for a meeting at the last Conservative conference, where G4S "offender management" executive Jerry Petherick, spoke alongside the prisons minister, Crispin Blunt.

As well as joining G4S, former Home Office mandarin Wheatley also took a role with Detica, a private cyber security company now owned by BAE Systems. Detica supplies equipment for the GCHQ listening station and is seen as having close links to MI5.

Lord Reid, the former home secretary, has been a paid adviser to G4S Secure Solutions since December 2008.

The report also shows that the committee approved former head of MI6 Sir John Scarlett's new job as an adviser to the Chertoff Group, a security consultancy run by the former US head of homeland security, Michael Chertoff.

The Chertoff Group, which offers "strategic security advice and assistance, risk management strategy" to corporations and governments also employs Reid.

The report revealed that the former chief of general staff, Sir Richard Dannatt, is now a consultant to the private security and investigations firm Control Risks Group, which employs many former security services staff. Their security business includes being the leading anti-kidnap company in Nigeria and a multimillion pound contract to supply armed staff for the Australian embassy in Afghanistan.

More traditional defence and arms industries are still keen recruiters of former defence staff, the report shows. The first Sea Lord Sir Jonathan Band became a consultant to US war jet manufacture Lockheed and British warship firm VT Group.

Air Marshal Iain McNicoll, deputy commander in chief at the Ministry of Defence became a partner at Defence Strategy and Solutions LLP, a multinational that advises defence companies on procurement.

Paul Stein, the former Ministry of Defence director general for science & technology, joined defence supplier Rolls Royce. This appointment particular worried the advisory committee. As well as banning Stein from lobbying ministers and officials for a year and asking he not be involved in bids for the MoD for the same period, the official report also states: that: "As an additional safeguard the committee asked for, and received, written confirmation from the company that they understood the conditions recommended by the committee and would abide by them if imposed."

Mbenga, an Angolan, lost consciousness on a British Airways flight preparing to leave Heathrow after being restrained. Three G4S guards have been questioned by police and released on bail.

There is no suggestion that either Collecott or Gould have broken any rules.

G4S insiders said last week that the company would never recruit any civil servant before passing an appointment before the advisory committee on business appointments, in keeping with Whitehall rules. The company was unaware of any involvement of Collecott or Gould with G4S while they were civil servants.

A company spokesman said they both worked on domestic projects. "To the best of our knowledge, neither is involved in a current project with G4S."

Rajeev Syal

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