Paul Flowers (banker)

Reverend Paul Flowers BA (Hons) FRSA FRGS,^[1] (born 5 June 1950)^[2][3] is an English local politician and ordained Methodist minister, currently suspended indefinitely by the church. He is a former Labour councillor in Rochdale, and was non-executive chairman of the Co-operative Bank.^[4][5]

In 2013, the activities of Flowers, who had occupied a variety of powerful political and business posts and had been appointed by Labour leader Ed Miliband to a senior post in 2010, were widely reported in the media. Flowers was filmed by an acquaintance in his car apparently agreeing to buy cocaine and methamphetamine, and appearing to count large sums of money while discussing his use of a range of other non-medicinal drugs.^[6] He was subsequently taken to court and convicted of possession of drugs.^[7]

Soon after the film of the apparent purchase of illicit drugs was released to the media, it was revealed that, while deputy head of social services at Rochdale Council, Flowers had known about the activities of paedophiles at a residential boys' school,^[8] but had not informed parents or taken measures to close the school,^[8] was responsible for rejecting allegations of child sex abuse against the late Rochdale MP Cyril Smith,^[9] and that, in 2011, while working at Bradford Council, "inappropriate but not illegal adult content was found on a council computer handed in by Councillor Flowers for servicing. This was put to him and he resigned immediately."^[10] Several newspapers reported allegations that he communicated with rent boys using his work email account while he was in charge of the Co-operative Bank, and was convicted of carrying out a sex act in a public toilet more than 30 years ago.^[9][11] After the bank lost £700m in the first half of 2013, and a £1.5 billion hole in the bank's finances was discovered by the new chief executive Euan Sutherland in May 2013, Flowers resigned in June 2013.^[12][13]

Early life

Flowers was brought up in Eastleigh, going to Barton Peveril School.^[14] From 1972 he studied for a Bachelor of Arts degree in theology, graduating from the University of Bristol in 1975.^[15][16] Early in his career he worked for four years in banking, gaining part 1 and half of his part 2 Institute of Bankers qualification.^[5]

Flowers now lives in Greater Manchester following his retirement from active ministry in June 2014.^[17]

Methodist minister

Flowers has been a Methodist minister for over 40 years. In 1976 he was appointed in the Bradford area of West Yorkshire.^[15] From 1978 to 1981 he was a minister at Hedge End’s Methodist church in Eastleigh.^[14] After periods in Coventry, Rochdale and Bridlington, he returned to Bradford.^[15] Flowers was a minister at Clayton and Wibsey churches in the Bradford South Circuit near his home in Bradford.^[4][18] He retired from the ministry in early summer 2014, He has now retired from the Methodist church and has left Bradford . He has still yet to face a disciplinary hearing of the Methodist Church but this has been delayed for some months. Flowers was a trustee for Methodist Church Purposes, the body which manages the church's invested funds and property.^[5] Flowers has contributed regularly to the Methodist Recorder, including a spell as the paper's art critic, writing the Gallery Notes column. He has also reported from the Methodist Conference. In 2000 he attempted to set up a trade union for clergy to protect members against false allegations of abuse.^[19] For a number of years he was a leading candidate in the race for the position of President of the Methodist Conference but withdrew after three unsuccessful attempts.

On 21 November 2013 he was suspended indefinitely by the church. He was to face a disciplinary enquiry by the Methodist authorities, but this has not taken place .^[20]

Co-operative Group

Flowers' career progressed through the democratic structures of United Co-operatives, becoming a member of its board following election via United's Yorkshire Regional Committee.^[16][21] In 2008, following United's merger with The Co-operative Group in 2007,^[4] he joined the board of the Co-op Group, and was later made its deputy chairman.^[1][5][5] He resigned from the Group board and all subsidiary positions in June 2013, after his enforced resignation from Co-op Bank that month.^[5]

Co-operative Bank

In 2009, following its merger with Britannia Building Society,^[5] Flowers was appointed non-executive chairman of the Co-operative Bank, on a salary which rose to £132,000.^[22] On 26 March 2010 he was appointed non-executive chairman of Co-operative Financial Services; the holding company for both the Co-operative Bank and the Co-operative Insurance Society.^[23] During this period, he was made a fellow of the Chartered Institute of Bankers in Scotland;^[1] in light of the later scandal, the fellowship was withdrawn on 21 November 2013.

After the bank lost £700m in the first half of 2013, and then the discovery of a £1.5bn hole in the bank's finances by new chief executive Euan Sutherland in May 2013, Flowers resigned from the bank in June 2013, taking responsibility for the difficulties the bank experienced after acquiring Britannia.^[24] He was replaced by Richard Pym, head of UK Asset Resolution.^[5]

Flowers testified to the Treasury Select Committee in November 2013 that the Britannia merger and other deals were undertaken under pressure from senior government ministers.^[25][26]

Labour Party

In the 1970s Flowers was vice-chairman of Eastleigh Labour Party, and contested Bishop's Waltham in Hampshire county council elections.^[14]

Flowers unsuccessfully stood for selection in 1985 as the Labour candidate to contest the Coventry South East parliamentary seat, supported by branches of his union as a former bank worker, the General, Municipal, Boilermakers and Allied Trade Union. He described himself as "towards the centre" politically in this campaign.^[27]

In the Rochdale council election of 1988 he gained a seat in the Smallbridge and Wardleworth ward, holding it until 1992.^[4][28] Flowers was vice-chairman of Rochdale Council's social services committee^[29] at the time of a Satanic abuse scandal, and was responsible for rejecting allegations of child sex abuse against the late MP Cyril Smith.^[30]

He then moved to Bradford, serving for 10 years on the city council.^[5] He resigned his seat in Great Horton in September 2011, because of his "increased responsibilities as Co-op Bank's chairman."^[31] In light of the 2013 drugs scandal, Bradford City Council revealed that, in 2011, "Inappropriate but not illegal adult content was found on a council computer handed in by Councillor Flowers for servicing. This was put to him and he resigned immediately."^[32][33]

In 2010 he was appointed by new Labour Party leader Ed Miliband to the party's finance and industry advisory board.^[4][20] On 6 March 2013 as part of his membership of the group, Labour leader Ed Miliband met Flowers to discuss UK banking reform.^[15]

Flowers had told MPs on the Banking Committee that he had helped to arrange a donation to then-shadow chancellor Ed Balls's office although Balls insisted that Flowers had nothing do to with the donation.^[34] The scandal surrounding the revelations led the Conservative Party chairman, Grant Shapps to ask the Labour leadership to disclose details of any private meetings with Flowers and to return a £50,000 donation to Ed Balls's office that Flowers had backed.^[35]

Other works

Flowers has been involved with a large number of charities, including being a trustee of both the Terrence Higgins Trust, and for 12 years the Lifeline Project, which works in the field of drug abuse. Following the scandal of November 2013, the Lifeline project stated that at the time of his resignation he was under investigation following alleged submission of false expenses claims, with the matter having then been referred to the Charity Commission.^[15][36]

In the 1980s he was vice-chairman of the West Midlands Citizens Advice Bureau.^[27] Flowers has been a member of the Advertising Standards Authority, and was vice chair of the National Association of Citizens Advice Bureau.^[4]

Flowers was also a chair of Manchester Camerata, the city's chamber orchestra.^[5]

He is a fellow of both the Royal Society of Arts and the Royal Geographical Society.^[1]

Drugs scandal

A few days after his appearance before the Treasury Select Committee, Flowers was filmed by acquaintance Stuart Davies in his car apparently agreeing to buy cocaine and methamphetamine.^[22] The clip appears to show him counting out £300 in £20 notes, before sending a friend to make the deal. Whilst waiting, Flowers discusses his use of ketamine, cannabis and GHB.^[22] Davies handed over the footage to the Mail on Sunday, which published its article on 17 November 2013.^[22]

Flowers was immediately suspended by the Methodist ministry for three weeks (later extended to indefinite suspension) pending further investigation,^[31][37] and suspended as a member of the Labour Party.^[18][24][38] Flowers in a statement said:^[37]

Co-operative Group chairman Len Wardle, who had been part of the committee which had selected Flowers and was scheduled to retire in May 2014, resigned in light of the revelations. He was replaced by Ursula Lidbetter, Co-op Group's deputy chair and chief executive of the Lincolnshire Co-operative Society.^[33]

David Cameron announced in the House of Commons that he would be setting up inquiries to determine how Flowers had come to be appointed chairman of the Co-op Bank.^[39]

On 21 November 2013 Flowers was arrested by police in the Merseyside area in connection with a drugs supply investigation.^[40] He has been dubbed the "crystal methodist".^[41] In April 2014 he was charged with possession of drugs,^[42] and convicted of possessing cocaine, methamphetamine and ketamine on 7 May 2014, receiving a £400 fine.^[43]

References

External links

• Biography at Business Week
• Biography at House of Commons