Tory MP Johnny Mercer: Colleagues leading smear campaign against me
The ex-army officer responds to a report on a firm he works for and its connection to a failed bond scheme that lost savers 拢236m.
Wednesday 24 April 2019 19:38, UK
A Tory MP has accused colleagues of leading "deliberate efforts to smear me" following reports that a firm which marketed a failed bond scheme funded his private salary.
Johnny Mercer said he would not be resigning from parliament or as a non-executive director for Crucial Academy, which trains ex-forces personnel and helps them to find work.
Crucial Academy is funded by Surge Financial Limited, which took 25% commission for marketing bonds by London Capital and Finance (LCF), which is now in administration.
Two LCF investors were quoted by the BBC calling on Mr Mercer to stand down after it revealed the connection.
The Plymouth Moor View MP said "legal action has commenced" in relation to the allegations.
Mr Mercer reportedly makes £85,000 a year for five hours' work a week with Crucial Academy, on top of his £79,000 salary as an MP.
He defended Crucial Academy as "a good organisation" that had "no financial link" to LCF, which collapsed in January.
"I have no intention of resigning or cutting them loose in this storm," he said.
The former Army officer said he had been assured that "at no point" was money used from any business with LCF in Crucial Academy.
In a statement on Twitter, he said :"It now appears that there is a historical link between the two, that has been uncovered in the accounts when Surge Group loaned the Crucial Group £325,095.
"Clearly I had no role in this, joining the Academy only last autumn."
Mr Mercer said that once that "historic link" was discovered, a management buy-out of Crucial Academy took place and the loan was repaid "in order to ensure the continuing integrity" of the firm.
He added: "Clearly there is some co-ordinated effort to go after me at present - the reasons for which are unclear.
"Let me be very clear from the outset: I totally reject the assertion that I have done anything wrong in working as a non-executive director of Crucial Academy."
Mr Mercer said it is possible to draw a link between an individual and any number of companies, writing: "I 'get' that this is an attempt to tie me to another company - LCF - that has imploded, amid allegations of fraud.
"I have never met, heard of, or had any interest in this company previously, yet alone the financial products they offered.
"I have huge sympathies with the bondholders, and would support them in any future action they take to try and recover their position.
"But let me be clear: Crucial Academy is a good organisation, doing good things, run by good people, with no financial link to London Capital and Finance.
"I have no intention of resigning or cutting them loose in this storm.
"The wider context of calling out deliberate efforts to smear me by so-called colleagues in the House of Commons, and then this story appearing so soon afterwards, I will leave for others to judge."
Mr Mercer later released a statement on Twitter from the Crucial Group, which said that he had not received any money from London Capital and Finance plc.
The statement added that Crucial no longer has any ties with companies linked to LCF and has issued instructions for legal action.
Mr Mercer said: "Extremely saddened by efforts made against a good company, run by good people doing good things for Veterans.
"Never have I received any money - directly or indirectly - from any 'collapsed bond scheme'. Legal action has commenced. Appreciate the kindness. Politics is truly grim."