Ministers snub CBI over rape and drug claims as crisis deepens

The Confederation of British Industry (CBI) plunged deeper into the crisis last night as ministers cut ties with the group over allegations of sexual misconduct and drug abuse.

On another day of turmoil for Britain’s largest lobbying organisation, the Treasury and Department of Trade and Commerce suspended involvement as an investigation into a series of claims is underway.

Companies such as Rolls-Royce, Ernst & Young and Marks & Spencer also expressed concern following allegations of the behavior of senior figures, with a woman claiming she had been raped at a staff party on a boat on the River Thames.

A company executive who declined to be named said the CBI’s reputation was in tatters, adding: “It’s hard to imagine how they could exert influence or represent business interests.”

And activists called on more companies to speak out.

Gwen Rhys, head of campaign group Women in the City, said: ‘This is the boys’ club that wants to keep the status quo. The problem is that if the CBI gets caught, they’ll all be scrutinized.”

The CBI, which represents many of Britain’s largest companies and campaigns on behalf of 190,000 companies, has been rocked this week by allegations including rape, assault and drug abuse among its staff. More than a dozen women approached The Guardian newspaper claiming to be victims of sexual misconduct by senior figures.

Business and Trade Secretary Kemi Badenoch (pictured) was due to hold talks with Britain’s five leading business groups, including the CBI, after Easter, but the meeting has been cancelled.

The CBI said: ‘We understand the government’s decision to suspend involvement pending the outcome of the independent inquiry. Shortly after Easter, the council expects preliminary findings and actions from the first phase of the investigation.’

The allegations follow complaints against CBI director general Tony Danker, who agreed to resign last month while an investigation is ongoing. The new allegations would not concern Danker.

Some companies are beginning to question their membership in the 58-year-old networking group.

Rolls-Royce said: “As a company that does not tolerate misconduct, the recent allegations are deeply concerning. We expect the CBI to thoroughly investigate all findings from that investigation and take action. We await the outcome before considering membership.’

EY, the accounting firm, said it would wait “until the official investigations are completed and the CBI responds to the findings.”

Manufacturer Siemens said: ‘It is good that a thorough and independent investigation is taking place.’ Andy Wood, CEO of brewer Adnams, said: “There is no place for sexual misconduct in society.”

According to Bloomberg, Marks & Spencer has asked the CBI for more information about the investigation. The CBI has canceled scheduled public events, including an annual dinner where Bank of England Governor Andrew Bailey was due to speak on May 11.

More than 600 executives were invited to the event, sponsored by Lloyds Bank, to ‘discuss the opportunities and challenges in today’s business environment’. Tables cost a whopping £4,900 each.

The lobby group is facing its biggest crisis since it was established by royal charter in 1965.

It was already reeling after complaints against Danker emerged last month. A junior colleague allegedly complained about ‘unwelcome contact’, which she regarded as sexual harassment.

According to reports, he sent a barrage of messages, some containing sexually suggestive language, for over a year. The father-of-two promised to cooperate with law firm Fox Williams, which launched an investigation into the claims.