The following is a cut 'n paste from a report in the Guardian newspaper last year about, the Angel Group's Julia Davey's get rich scheme based on housing refugees in sub-standard accomodation and ripping off local councils and tax payers.
Surely funding a refugee event like celebrating sanctuary in Birmingham not only provides them with very cheap promotion but also absolves them from any criticism from refugee orgs for fear of withdrawing their money from the event?
The question we should be asking is why is Celebrating Sanctuary actively promoting a corporation like The Angel Group for it's refugee week event? Surely it should source the finance for this event from organisations with some integrity when it comes to refugees in this country? Surely replacing the Angel Groups £50,000 'contribution' isn't that hard in Britain's second city?
http://politics.guardian.co.uk/homeaffairs/story/0,11026,1541364,00.html Rich pickings in the world of asylum seekers
Company made millions through Home Office housing scheme
Owen Bowcott and David Pallister
Wednesday August 3, 2005
The Guardian
It has taken Julia Davey only five years to build up her multimillion-pound property empire. From small beginnings in 1999 - housing single asylum seekers for Kent county council - the assets of the Angel Group at the end of 2003 had, according to the last company report, expanded to nearly £40m.
In that time Ms Davey, 48, has formed 57 other companies. On top of big dividend payments, she awards herself a salary of around £½m. She is the sole director. That is the sort of basic pay expected by the head of one Britain's top plcs.
Rich pickings in the world of asylum seekers
Company made millions through Home Office housing scheme
Owen Bowcott and David Pallister
Wednesday August 3, 2005
The Guardian
It has taken Julia Davey only five years to build up her multimillion-pound property empire. From small beginnings in 1999 - housing single asylum seekers for Kent county council - the assets of the Angel Group at the end of 2003 had, according to the last company report, expanded to nearly £40m.
In that time Ms Davey, 48, has formed 57 other companies. On top of big dividend payments, she awards herself a salary of around £½m. She is the sole director. That is the sort of basic pay expected by the head of one Britain's top plcs.
The accolades have followed, as well as the rewards, including a Range Rover Vogue, a red Ferrari, a new three-storey headquarters in London's Docklands and business interests in the US, Israel, Poland and Cyprus
Last year the Estate Gazette's rich list placed her at number 15 out of the 20 wealthiest women in property. In June an online business website - realbusiness.co.uk - put her at number 17 in its list of 50 top businesswomen.
How was it all possible? Housing for asylum seekers and the homeless is the Angel Group's stock in trade. "Providing Homes & Hope for the Future" is Angel's motto and it boasts that it is a provider of "high quality accommodation and support services to vulnerable people across the United Kingdom." The Home Office contracts have been enormously lucrative for the private landlords.
However, internal company records and conversations with former employees reveal that the Angel Group may have indulged in sharp practices that could have deprived the British taxpayer of tens of thousands of pounds.
They appear to include double booking of houses to Leeds city council and the Home Office's national asylum support service (Nass), accepting payments from Nass for properties which were unfit or where keys had not been obtained and wrongly claiming council tax relief. The Guardian has identified 35 examples.
Ms Davey, through her lawyers Carter-Ruck, has denied any fraudulent practices. She says all the examples provided were "small-scale administrative errors" and the money has been paid back. She accuses our sources of being malicious and resentful after being sacked.
The Angel Group, along with a handful of other private companies, principally benefited from the government's decision in 1999 to disperse asylum seekers out of the crowded south-east to the rest of the country. Asylum, then as now, was a hot political issue.
With applications rising, and amid a huge backlog of cases and seething local resentments, particularly in the coastal towns of Kent, the Home Office set up Nass in 2000 to support asylum seekers while their claims and appeals were being considered. Nass began spending about £1bn a year. Last year it spent £439m on accommodation alone, £25m above the market rates, according to a survey by the National Audit Office (NAO) this month.
Angel got off to a flying start. Three months before Nass was established in April, Ms Daley bought an old nurses' home in Newcastle and called it Angel Heights. Its first occupants, under an interim scheme where local authorities agreed to transfers, were Iraqi and Iranian asylum seekers from Kent, who within weeks had rioted over poor conditions.
In its first two years Angel Heights generated a profit before tax of £700,000 and Ms Davey picked up a dividend of £300,000.
With a five-year contract from Nass that amounted to £20m a year, the Angel Group started acquiring and renting properties across Yorkshire and the north-east. It was handling up to 800 properties at a time, all of which were paid for by Nass whether they were occupied or not. In the event, according to former employees, between 30% and 50% were not used.
At its busiest, the Angel Group was providing more than 3,600 bed spaces to Nass. The fee paid for each bed space was £102 a week.
In its first three years Nass was an organisational catastrophe. A 2003 independent review found a "continuous crisis management" and a "worrying lack of financial discipline". As a result, delivery was "difficult, slow, expensive and prone to errors".
On the critical question of procurement, the review found a shortage of professional managers and described the accommodation contracts as "rigid and mechanistic" and expensive to manage. A staggering 50% of records on spaces available were inaccurate. Only in April this year, was the practice of paying out money for unused properties on the Nass register abandoned.
In the initial rush to meet the contract requirements Angel started to tell Nass they had rented properties available before they had signed contracts with the landlords or taken possession of the keys, and on inspection some were uninhabitable.
This practice accelerated in October 2004 when Nass cancelled large contracts with two other private companies and asked Angel to supply more homes. Staff at Angel felt under pressure to enter properties on the Nass register as quickly as possible.
"We called [those] we couldn't use 'ghost properties'," a former employee explained. "I had to help ... putting bogus properties on the Nass system. We would get hold of the details at the first possible moment ... before the keys were in our possession.
"There were hundreds of those where we never got the rights to them. Often they were ones where the landlord [later] decided he wasn't happy with the rent or [hadn't] realised there would be asylum seekers. There were properties where the environmental health were getting on our backs and said they would put out enforcement orders."
Another former employee involved in the process at Angel Group recalled a similar experience. "We were put in a situation where we had to lie all the time for the benefit of the company," he said. "It was very stressful. We were saying [to Nass] you can't use this property because there's maintenance going on or a series of excuses. We had to meet targets."
The situation was often chaotic. In Newcastle, for example, there were three houses which Angel put on the Nass register despite staff having difficulties in obtaining keys. The landlord who owns them has told the Guardian he received no rent for the properties from Angel.
"The keys never materialised. Because these properties had been submitted to the Home Office, we could not just take them off if we did not have replacements," explained a third Angel ex-employee. "All the properties were being paid for by the Home Office at taxpayers' expense."
"My colleagues in Newcastle and I did suggest that because we had not paid any rent for these properties, that we use some of the monies to carry out any necessary work ... I was appalled that authority was not given because I had received information from Newcastle that there were properties where heating was not working and families and children were suffering from the cold."
In February this year the employee emailed Angel's former company secretary, saying he had managed to find 12 replacement properties in Newcastle for those found to be defective. He said he would draw up tenancy agreements if they were found to be fit to live in.
A few minutes later the secretary emailed back: "I do not want this process to take time. I and Julia were surprised/ shocked it had not already happened some time ago. It must be completed without fail by the end of the day so [a named member of staff] can replace the properties on the Nass database before she leaves tonight."
Angel insisted the properties were taken off the Nass register when "defects" were found. The company said it had paid back the Home Office and denied any of its actions had been corrupt.
In 2004 Angel Group won a contract with Leeds council to provide 250 units for the homeless. But some of those people were placed in houses that Nass was already paying for.
Another former Angel employee said that when the Leeds city contract came up last year there was a desperate rush to fill the required number of bedspaces. "It was Julia's idea to raid the Nass register," he explained. "She told us to get as many Nass properties as we could. I reckoned that if one of the Nass properties had, say, only one asylum seeker in them we could get them out and offer them to Leeds. Julia would scream and shout: 'I don't care how many people are in them, just get the properties'."
While Julia Davey's lawyers dismissed these allegations as "absolute rubbish", they admitted that mistakes were made in the double-booking of the three properties identified by the Guardian. But the company said these were administrative errors and credit notes had been issued.
The Guardian visited these properties, all on bleak housing estates. In one, a young homeless woman, said: "It was filthy. My partner took one look at it and wanted to leave. It took me two days to clean all the grease off the cooker."
In another, with a pile of rubble outside, was a 26-year-old pregnant asylum seeker from the Democratic Republic of the Congo. The front room carpet was covered in dark stains. "How am I to bring a child into this place," she said. "They won't even give me a washing machine."
The NAO this month released a report showing that deficiencies in the Nass system still exist. Reviewing Nass data for the last four months of 2004 the NAO found that 33% of 4,535 properties inspected had "significant" defects and 7% needed immediate action. Although one provider had its contract ended last year because of poor performance, the NAO said: "None of the other accommodation providers incurred any direct financial penalties for providing unsuitable housing stock."
Comments
Hide the following 11 comments
Balance please
21.06.2006 08:56
Just as a counter to some negativity.
CS may take money from the Angel group, and the Angel group may be bad news in Leeds and maybe elsewhere... and believe me if what I have been hearing is true then it is fair play to protest against them at the event over the weekend...
But I think the points about CS should be taken up with the trustees and paid staff for taking the money and NOT with the volunteers who were trying to make a good event. The people running the event were making a genuine attempt to spread positivity about refugee communities and friends of mine who are migrants/refugees themselves who were trying to communicate about their culture and lifestyle.
The presence of the Angel group does NOT suggest a sinister conspiracy on the part of the event as a whole, but maybe on the part of the Angel group - and from my knowledge of the CS people, from their naivety rather than any diabolical aims. Therefore education may be the best answer, as the attempt was made by Noborders, well done, and the feature illustrates this well.
So, do what u gotta, but keep the focus. Yes CS are involved in the
vigil, which shows some positive intent, no?
Matt
PS I don't work for them!! But know some people who have volunteered
their time for the event, and they felt annoyed and sometimes intimidated by the actions of some of the protesting peoples and the camera that was around...
Matt
A baby-eating CS trustee writes...
21.06.2006 23:13
Basically, I'm not going to comment on the business ethics of Angel as such but I will say that they're a capitalist organisation and, as such, exist to make a profit.
They, like other private accommodation providers, are able to make their profit from the NASS "dispersal" system set up by the Labour Government in April 2000, which effectively cuts asylum seekers off entirely from any form of mainstream housing and welfare provision. Angel, in other words, aren't responsible for the situation, they're capitalising on it.
There's no regulation of this system: Birmingham City Council's Cabinet Member for Housing, John Lines, recently openly boasted that the accommodation provided to asylum seekers by BCC is "less than salubrious". In other words, the person with statutory responsibility for ensuring that Brum's citizens live in decent conditions thinks it's a vote-winner to behave like a minor character in a Dickens character. And, tragically enough, he's right in that belief. Surely, NoBorders needs to be trying to develop an analysis of the situation which addresses these problems at their roots, rather than carrying out knee-jerk faux radical witch hunts and videoing charity workers? (Celebrating Sanctuary, by the way, has formally written to Councillor Lines condemning these remarks. As yet, we are still awaiting the courtesy of a reply...)
What I'm trying to get at here is that it's more important to analyse and challenge the sickness at the heart of this country's treatment of asylum seekers rather than simply rant about the symptoms. Because even if Angel were to decide to opt out of housing asylum seekers on the basis of a few leaflets being handed out - which is unlikely- the fact is that another 2 or 3 corporations would be only too willing to fill the gap they'd left. And the essential issue of asylum seekers' housing rights would remain unchanged.
The issue seems to be that people think CS should have refused Angel's offer - the suggestion's been made somewhere that "it can't be too dificult to source the money from elsewhere", which seems to suggest that people are falling over themselves nowadays to splash out money on events promoting refugee rights. Sadly, that's not my experience....But the question that remains unresolved for me is this: had CS refused the money from Angel, that corporation would have been 40k or so richer. And what else would have changed?
Dave Stamp
(Disclaimer- the opinions I've expressed here are my personal views and do not necessarily represent the opinions of other Celebrating Sanctuary members, or the individual organisations for which they work)
Dave Stamp
exploitation on the back of fugees
22.06.2006 10:20
Lets get the facts straight - Housing providers for fugees are exempt from local or central governments policies on 'basic housing standards', the standards are contractually based between the housing provisder and NASS.
These housing providers receive anywhere between 200-250 per week, per room, per person. These are figures based on Merseyside NASS housing - again these figures are at the low end, because again the actual figures are worked out between NASS and housing provider.
If people want to help the debate on fugees and people seeking asylum , then people should be prepared to state the facts as they are.
Plus, on the issue of volunteering, again who benefits - the volunteer, or the business? the volunteer gains some experience at the hands of the System, but ultimately the business gains the most - free labour.
The system stinks - Labour would have been better off if they were to fund the old Immigration system properly rather than fund NASS. There's no need for NASS - the old benefits system was working well enough, but there's votes to be had in being tuff on the fugees
shumon farhad
We roll deep. Apparently.
23.06.2006 10:09
The only balance CS is interested in is its bank balance?
Which is presently what exactly? Um....try "sod all."
Dave Stamp
social capital at any cost
23.06.2006 11:17
If CS has '…sod all…' then whopays for the meetings, who administers the minutes, are minutes kept of CS meetings?
clarence carlos
Meh.
23.06.2006 14:50
Who pays for the meetings? What costs do you imagine there are? Whichever charity's hosting the meeting might fork out for a the tea and biscuits, otherwise... Who takes the minutes? The (unpaid) Secretary, weirdly. We do keep minutes, yep. We even have an AGM. That costs about 50 quid to put on. Yeah, we livin large, son!
As for keeping the status quo: whatever. All I know's that I spent last saturday raising a couple of hundred quid for destitute asylum seekers, and managed to get the issue raised sympathetically in a local rag. Not a revolutionary step, granted, but possibly more productive than posting dumb, ill-informed anonymous pish about a subject you know jack about.
Foolish boy.
Davy Vested-Interest
Meh
23.06.2006 14:56
CS don't celebrate refugees? Who you reckon was performing all afternoon (at MU approved rates) in Chamberlain Square last week? Julia Davey's Karaoke Soundklash?
Yeah, we keep minutes. The (unpaid) secretary takes em. As for the costs of the meetings, well, we try to keep to just the one bottle of Krug and half a dozen oysters each, unless it's Julia's birthday, then we splash out.
Put it this way: I spent last saturday raising a couple of hundred quid for destitute refugees and getting the issue raised sympathetically in a local rag. Not revoultionary, granted, but possibly mo' productive than bleating ill informed tosh on a newswire.
Still, horses for courses and all.
Dave
Good point but unbalanced!
05.07.2006 19:59
However, the event is a wonderful celebration of the contribution of Refugees to life in Birmingham and I think the article misses this.
Si
Angel Group - our experience
07.07.2006 11:35
Since c. 2002 Angel Group, and particularly Julia Davey have acted as our sponsors, providing a substantial monthly grant towards running costs. Without this we could not have survivived since it is hard to get funding for basis things like phones, faxes, photocopiers etc. During this period we have not compromised our independence and have not been asked to do so by Angel Group. We have continued to put asylum seekers first and got Angel to act in the best interest of asylum seekers despite NASS opposition.
Most of us are unpaid volunteers and the organisation is run on a direct democracy principle uniting locals with asylum seekers in the struggle against racism and the effects of HO policy.
There is no reason why Angel should have supported us, alone of all the housing providers. Thousands of people have made money out of the crazy asylum system. If someone sees fit to put some back in to help groups or projects then they deserve recognition for this. Without Angel we would have collapsed and thousands of asylum seekers would have been adversely affected.
Alan Brooke KRAFT founder and trustee. 01484 666719. 24 Queen St, HD1 2SP
Alan Brooke
e-mail: pambrooke@hotmail.co.uk
i've raised a couple of quid
07.07.2006 13:33
some of us were born as refugees - some of us actually send money back to our families - some of us devote our time to this cause without the need for sitting on boards, some of us are fed up with the bullshit that comes from the liberals who are willing to succumb to the classic 'if we dont do it, nobody will..." , some of us are involved in local grassroot organisations that don't get a welcome from well placed fellow NGO's, but you wont hear of these - we are the voiceless who don't sit on any panels,
shumon
shumon farhad
Oh dear....
17.08.2006 10:58
Angelwhore