黑洞社区

The UK鈥檚 former chief construction advisor has called the decision of the Royal Institution of Chartered Surveyors to ask its own bosses to chair a review into its future purpose a 鈥渄isaster鈥�, adding the organisation鈥檚 leadership should leave their posts.

Paul Morrell said the appointment of RICS president Kathleen Fontana and chief executive Sean Tompkins to chair its 鈥楧efining Our Future鈥� review, which was prompted by a member backlash against a governance scandal, was a 鈥減athetic鈥� attempt to 鈥渒eep a lid on things鈥�.

And Richard Steer, who has been Gleeds chairman for more than half of his 40 years at the business, was also critical of the move, telling 黑洞社区 it was 鈥渁 bit like marking your own homework鈥�.

Morrell, who was the government鈥檚 first chief construction adviser between 2009 and 2012, told 黑洞社区 it was 鈥渄ifficult to feel motivated to respond to any inquiry that does not start out with a very real possibility that those who have presided over the Institution鈥檚 current predicament should go 鈥� as I think they should鈥�.

The review into the future purpose of RICS, which went live earlier this month, was launched after the organisation鈥檚 botched handling of a damning financial report by accountant BDO led to a backlash from members.

It came after it emerged in December last year that four non-executive directors had been dismissed from RICS鈥� governing council in 2019 after raising concerns about why the report had not been shared.

After weeks of mounting pressure from members to explain why the non-execs had been ousted, the RICS鈥� leadership announced it was launching an independent review into the matter, adding it would undertake a 鈥渃omprehensive鈥� review into its 鈥渙ngoing purpose and relevance鈥�.

But while it has appointed barrister Peter Oldham QC to conduct the review into the handling of the financial report, it said last month it had appointed its own bosses to lead the future purpose review.

Morrell, a former senior partner at Davis Langdon and international chairman of the firm, said he had 鈥渘o faith鈥� in the future purpose review under the organisation鈥檚 current leadership and said the appointment of Fontana and Tompkins to chair it was 鈥減redictable鈥�.

He added: 鈥淭he Institution is free to contemplate its own navel as often as it wants鈥�.If, however, this is a reaction to the high level of unrest amongst the membership about the strategic direction and competent management of the organisation, then it is further demonstration of the crass insensitivity that got it into trouble in the first place.

鈥淭he review that is required demands a degree of independence from those who have most recently been setting the strategic direction and managing the organisation.鈥�

Last month he called the organisation鈥檚 current leadership 鈥渁rrogant and naive鈥� over its handling of the financial report and said that breaking up the institution was 鈥渙ne solution鈥� to making it operate more effectively.

Steer also wondered whether it was a mistake for the RICS management to be put in charge of the initiative.

He said: 鈥淎t first sight, the news of [the] senior management team at the RICS being positioned to 鈥榣ead鈥� the internal review of the organisation seems somewhat out of step with the requirements articulated by the membership.

鈥淚t is clear there is a need for change, if nothing else to restore the credibility of the Institution. It is up to the review to establish how the organisation can move forward.鈥�

He added that although the senior leadership team could add value to the review and should have some involvement, 鈥渢o be seen as managing the review is a bit like marking your own homework. It will do nothing to restore faith in the way the RICS is being managed.鈥�

The 10-page report by BDO gave the 153-year-old institution the lowest possible 鈥渘o assurance鈥� rating for its treasury controls and warned that it was at risk of 鈥渦nidentified fraud, misappropriation of funds and misreporting of financial performance鈥�.

RICS chair of its UK and Ireland world regional board Simon Prichard said that the furore among members over the last few months was a 鈥済ood sign鈥�.

Prichard, who is also a senior partner at Gerald Eve, added: 鈥淭here is a lot of noise and emotion currently surrounding events at the RICS and certainly some strong opinions about the new Defining our Future review.

鈥淚 think it鈥檚 actually a good sign because it says to me that it matters to members and that being the case, we have an opportunity now to engage and shape the future of the profession.

鈥淩ICS boards like the one I chair, and RICS Governing Council, are made up of experienced surveying professionals with a real stake in the future strategic direction of our Institution.

鈥滻t saddens me to hear members say they might consider not renewing their membership, or are writing off this exercise when it鈥檚 only just been launched because if you want to affect change for the future you have to take a seat at table and get engaged.鈥�

Members have until 9 April to tell the RICS how they want it to change.