Abuses Of Power

The use of parliamentary privilege to break non-disclosure agreements raises questions about their usage

This month has had an unfortunate amount of light shone onto the role of non-disclosure agreements and their legaility and morality, or lack thereof. The main focus of this press attention has come from the naming in parliament of controversial businessman and chairman of Arcadia Group, Sir Philip Green, as the UK businessman who had been alleged to have used non-disclosure agreements and substantial payments to conceal the truth about serious and repeated sexual harassment, racist abuse and bullying.

This case is of course extremely troubling in many ways and much has and will be written on the subject. In terms of governance, we must look to the responsibilities of the board and auditors and also to the government and legal system.

In the case of Sir Philip, the Court of Appeal had granted him and his senior staff a temporary injunction against the Daily Telegraph, preventing them from publishing the results of an eight month investigation into allegations of bullying, intimidation and sexual harassment.

The Telegraph has reported that they had interviews with several members of Sir Philip's staff who revealed that 'substantial sums' were paid to reported victims in return for legal commitments not to discuss their alleged experiences.

Non-disclosure agreements

Following days of press and social media speculation into the identity of the businessman, former cabinet minister and Leader of the House of Commons, Peter Hain revealed Sir Philip's name in the House of Lords, stating: 'Having been contacted by someone intimately involved in the case of a powerful businessman using non-disclosure agreements and substantial payments to conceal the truth about serious and repeated sexual harassment, racist abuse and bullying which is compulsively continuing I feel it's my duty under parliamentary privilege to name Philip Green as the individual in question given that the media have been subject to an injunction preventing publication of the full details of this story which is clearly in the public interest.'

Sir Philip has refused to comment on court proceedings or anything that was said in parliament but did issue a statement denying any wrongdoing.'To the extent that it is suggested that I have been guilty of unlawful sexual or racist behaviour, I categorically and wholly deny these allegations. […] Arcadia and I take accusations and...