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PoliticsHome News
Live as it happens
Thursday 10th November 2011 | 19:10
Revealed: Hinchingbrooke takeover firm's Tory links
By Isabel Hardman
The private company that will take over Hinchingbrooke Hospital has significant links to the Conservative Party and its MPs, PoliticsHome can reveal.
Circle Healthcare, which was today given the ten-year contract to manage the Cambridgeshire hospital, is part-owned by Odey Asset Management and Lansdowne Partners, both of which have made donations of tens of thousands of pounds to the Conservative Party in recent years. In addition, Tory MP Kwasi Kwarteng was until August 2011 employed as a consultant by Odey, who paid him £10,000 for his services.
Labour was quick to seize on the revelations, calling on the Government to provide assurances that the takeover process was managed properly. Shadow Health Minister Jamie Reed told PoliticsHome: "More than a few eyebrows will be raised by this decision, given the close links with Conservative Party.
"The Government has to provide assurances that the process was properly handled at all times. We need to know what involvement Ministers have had in the decision and whether Mark Simmonds MP has held formal or informal discussions with Health Ministers on behalf of Circle."
The Electoral Commission's register of donations to political parties shows that Odey Asset Management donated £242,000 to the Conservative Party between 2007 and 2011, while Paul Ruddock and David Craigen, chief executive and partner at Lansdowne respectively, donated £569,586.42 and £59,000 to the Conservative Party between 2003 and 2011.
Odey owns a 21.4% stake in Circle Holdings Plc, while 18.9% is owned by Lansdowne UK.
Mr Kwarteng rejected claims that his links with Odey had any connection with the Circle contract. He told PoliticsHome: "I stopped working for them. I've worked for them in the past. The idea that there is any connection with any of this is not true. I have not worked with them for a while."
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