Burton withdraws YUSU website host bid over conflict of interest
A BID by a company owned by Matt Burton to host the YUSU website has been withdrawn amidst controversy after concerns were raised over possible conflict of-interest.
Burton, Service and Finance Officer-Elect, withdrew a bid by B3, an internet company of which he is a director, after concerns were raised during a heated Executive Committee debate. Burton entered the bid after seeing the terms of the contract currently favoured by YUSU, which he described as a “complete rip-off” and said was “rushed through over Easter”.
The contract currently favoured was put forward by an internet hosting company called UKC and offers to host the YUSU website for £140/month. Burton claims his company could provide the same service for £90/month as well as hosting the websites of all college JCRCs and University societies. Burton also claimed to have consulted an employee of the University’s Computing Service who agreed with his assessment.
When asked why he thought that YUSU had not immediately switched over to the more favourable deal, he said it was because Communications Officer Colin Hindson “doesn’t want to get egg on his face” by backing out of a contract that Burton claims has already been informally agreed.
The controversy began when an internal YUSU memo was circulated on April 23 citing guidelines given by the NUS on issues of trusteeship. It specifically pointed to a passage reading: “The Charity Commission is of the view that there are two distinct duties. Firstly, a trustee should not put him or herself in a position where personal interest conflict with the interests of the charity and secondly, a trustee should not profit.” The memo concluded that if the B3 contract were to be taken up then Burton, who will be become a trustee of the union once he takes power, would be in a position to “profiteer” from the union. Burton replied to the memo saying he “strongly rebuked” the claim.
During the April 25 session of the Executive Committee, YUSU President Rich Croker ordered the meeting into “closed session” on two occasions. During a closed session all non-voting members are removed from the meeting and minutes are not taken. Burton said the decision to go into closed session, and remove the sabbatical officer-elects, was a “cloak-and-dagger tactic.” He also refuted assurances by Croker and Hindson that there would be no discussion of the contract until they returned, saying repeatedly, “They’re discussing it”.
Divisions emerged between the old and new YUSU officers. Burton and Canning, as well as newly-elected Training Officer Tom Langrish, argued that the conflict of interest associated with the B3 contract could be negated as long as “it was managed appropriately”. However, the proposal was met with hostility by the current sabbaticals.
Croker said that upon assuming power, Burton would become the “line manager” for all YUSU staff. Should conflict arise between B3 and YUSU staff there would be a “conflict of interest outside of the trustee issue”. After an hour of debate Burton withdrew the bid.
