A statement TfL made to the London Stock Exchange on 24 July 2018 made no mention of a delay to the Crossrail launch. Yet, following questioning by the London Assembly, it emerged that TfL already knew the project would not open on time.
The London Assembly Transport Committee was concerned about the lack of transparency and wrote to the Financial Conduct Authority (FCA) for clarification on the issue. The FCA has now responded to that letter saying it will consider whether it is appropriate to launch a formal investigation.
The FCA has a number of options available to it, if the rules were breached. Including:
- Public censure
- Fine (at its discretion)
Caroline Pidgeon MBE AM, Chair of the London Assembly Transport Committee said;
“The Transport Committee identified grave discrepancies in the evidence gathered from meetings to determine who knew what, when, with regard to the launch of Crossrail.
“We can only conclude that we have been misled – and now the financial markets will want to know if they have been misled too.
“Not being transparent about such a large infrastructure project affects many people and many businesses. Any misconduct should be taken very seriously.
“We expect the Mayor and TfL to fully comply with any requests from the FCA. This Crossrail debacle has knock-on effects across London’s transport system and accountability for poor management is imperative.”
Related documents
FCA response to Caroline Pidgeon AM
Notes to editors
- On 6 September, the Mayor of London, Sadiq Khan told the London Assembly that Crossrail had not informed him of the delay to opening Crossrail until 29 August. Yet Transport for London (TfL) was definitely told of a likely delay on 19 July. It seems highly likely that the Mayor, as Chair of TfL, would have been briefed then too and Crossrail informed the Assembly it had briefed the Mayor on 26 July.
- The letter is attached.
- The FCA list of fines for the year (https://www.fca.org.uk/news/news-stories/2018-fines). The biggest fine so far this year is £16.4 million - Tesco Bank for a data breach. In 2017 there were two fines of £34.5 million for Merrill Lynch and £27.4 million for Rio Tinto for “failing to report 68.5 million derivative transactions” and “failing to report an impairment to the Market”
- Caroline Pidgeon MBE AM, Chair of the Transport Committee, is available for interview – see contact details below.
- London Assembly Transport Committee.
- As well as investigating issues that matter to Londoners, the London Assembly acts as a check and a balance on the Mayor.
For media enquiries, please contact Alison Bell on 020 7983 4228. For out of hours media enquiries, call 020 7983 4000 and ask for the London Assembly duty press officer. Non-media enquiries should be directed to the Public Liaison Unit on 020 7983 4100.