Union bosses demand OVO energy boss Stephen Fitzpatrick faces MPs to answer “serious questions” over millions of pounds in furlough money and loans.
Mr Fitzpatrick, founder and CEO of the energy company, was already quizzed by MPs in the House of Commons on £17 million in furlough money the UK Government paid to OVO.
MPs also asked about £40m worth of payments and loans made by OVO to other companies owned by Mr Fitzpatrick.
It comes weeks after OVO announced it is making 1,700 people redundant and closing down its offices in Perth and Dunfermline.
The Unite union, along with Perth and North Perthshire MP Pete Wishart, are now calling for Mr Fitzpatrick to be brought back to parliament to be questioned on what they are calling “conflicting evidence”.
£40m of loans and payments
In 2020 the UK Government paid out £17m in furlough money to OVO.
In the same year more than £40m of payments and loans were made by OVO to other companies owned by Mr Fitzpatrick.
This includes £21m paid out to Imagination Industries, the energy company’s parent company, for “brand royalty fees”.
Other payments include a £5.6m loan from Imagination Industries to Vertical Aerospace, a £4.4m loan to Imagination Industries Incubator Ltd, £1.6m to software development firm Imagine Just 3 Things Ltd, and millions loaned to Imagination Industries Aero Ltd.
All of these companies are owned by Mr Fitzpatrick.
Speaking at Westminster’s Business, Energy and Industrial Strategy select committee, Mr Fitzpatrick was asked to explain how the company was able to make these payments and loans in the same year it received millions in furlough money.
Mr Fitzpatrick told the committee: “The number £40m I read once, but I don’t recognise that number.”
When he was quizzed on OVO’s £21m loan to Imagination Industries, he said: “If it was not for income that Imagination Industries received it would not have invested in Vertical [Aerospace] and paid the salaries of the people who work in Vertical Aerospace in Bristol.”
The committee was also told Mr Fitzpatrick donated £2m a few weeks ago to debt advice charity Step Change to help them give advice to those struggling to cope with the ongoing energy crisis.
‘Committee needs to follow the money’
Simon Coop, Unite’s national officer for energy, says he is “astonished” Mr Fitzpatrick turned up to the meeting in the House of Commons, as he has yet to meet anyone from the union to talk about the 1,700 job losses.
Mr Coop also adds he gave “conflicting evidence” to the committee.
He said: “Either he genuinely doesn’t know about the £40m transferred from OVO to his companies or he knows that one of them got £21m from OVO which then paid out more than £5 to another.”
.@charlotte2153 is right, something just doesn't add up. @OVOEnergy need to come clean and 'open the books'. https://t.co/6D1BraOsgV
— Unite Politics (@UnitePolitics) February 8, 2022
He added: “They can’t both be accurate.
“Mr Fitzpatrick has raised more questions than answers about what has gone on at OVO.
“Now only weeks after the redundancies are announced there’s another £2m spend that pops up out of nowhere.
“The commons committee should recall Mr Fitzpatrick to give more evidence.
“Frankly, given what’s at stake, the committee needs to follow the money.”
Calls for OVO boss to come to Perth
Mr Wishart urged Mr Fitzpatrick to meet him in Perth to discuss the job losses.
OVO is planning to shut down its base in the city where 700 people are employed.
Mr Wishart, along with local MSPs John Swinney and Jim Fairlie, met Adrian Letts, the CEO of OVO’s retail arm, in January to discuss the job losses.
Despite calling for him to personally attend this meeting, Mr Fitzpatrick was not present.
Mr Wishart said: “After his unsatisfactory appearance at the BEIS select committee, Stephen Fitzpatrick must now come to Perth and meet local politicians to explain his decision to close the Perth OVO operation with the loss of 700 jobs.
“Since this announcement, Mr Fitzpatrick has gone into hiding.
“He failed to turn up to the meeting with Perthshire politicians last month, and has repeatedly avoided communication with unions and the thousands of staff who he has betrayed with a series of false promises.”
Mr Wishart says it is “simply not good enough” that Mr Fitzpatrick was unable to answer questions about OVO’s finances when he came to the House of Commons.
He added: “Critically, we need to uncover whether money was paid to other companies in Mr Fitzpatrick’s business portfolio, which could have been sued to save jobs in Perth.
“We are due a further [meeting] soon with OVO and Mr Fitzpatrick must be present.”
OVO Energy was approached for comment but declined to respond to Unite’s claims.
Pete Wishart calls for OVO to explain £40 million in loans and cash transfers