Transfer of MetRadio equipment

Report: 06
Date: 11 February 2010
By: Director of Information and Assistant Commissioner Specialist Crime Directorate on behalf of the Commissioner

Summary

The MPA has previously approved the decommissioning and disposal of the MetRadio system following the implementation of the Airwave radio system.

As part of the disposal programme it is proposed to transfer some of the equipment to the Ghana Police Service (GPS) and the Air Training Corps (ATC).

The transfer of equipment to GPS will support an important international collaborative crime-fighting relationship for operational policing. It also offers financial benefit through cost avoidance. A number of sites with suitable equipment for the GPS have been held back from the decommissioning process, pending the MPA decision.

The ATC transfer will comprise only radio hand-sets that have already been collected.

A. Recommendations

Members are invited to approve the transfers to:

1. Ghana Police Service.
   Transfer comprising 20% of base-station equipment, and 7,500 hand-sets and related equipment (batteries, chargers, accessories).
2. Air Training Corps in the London area.
   Transfer comprising 2,000 handsets to ATC units in the London area.

B. Supporting information

Background

1. The MPS has a large holding of redundant analogue radio communications equipment that is for disposal due to the “MetRadio” system having been superseded by the Airwave system.

2. The infrastructure was installed over some 100 sites across greater London, many of which are leased property incurring rental and other charges. Funding for decommissioning and disposal of the vast quantity of equipment was reserved as part of the Airwave Grant made under the C3i Programme. The Radio Decommissioning & Disposal Project has been working on this since June 2008, seeking a corporately responsible outcome that minimised environmental impact while reducing cost and realising residual values wherever possible.

3. Various options for public sector re-use have been considered, including the Olympics Delivery Organisation and via the regulator, OFCOM. Unfortunately these were not viable.

4. This report proposes the transfer of up to 20% percent of base station equipment and some hand-set equipment to the Ghana Police Service (GPS), with a smaller transfer of hand-sets to the RAF Air Training Corps (ATC) based in London. The balance of the equipment was offered for sale on a competitive basis, in accordance with MPA policy. It has been sold on a revenue share basis to a UK purchaser (agreement currently being finalised).

Ghana Police Service

5. The MPS has a Memorandum of Understanding (MoU) with the Ghana Police Service (GPS), facilitating collaborative crime-fighting activities, of which improved communications are one of the most important requirements for GPS.

6. In July 2008, the Ghana High Commissioner to the UK made a formal request for assistance to improve the radio communications of the Ghanaian Police Service.

7. In light of the MetRadio equipment becoming available, Assistant Commissioner John Yates asked for this request to be provisionally explored within the context of the MoU.

8. Ghana is seen as a country where HMG is able to work effectively to increase capacity to support domestic objectives, while simultaneously offering excellent opportunities for reducing harm to the UK. The Foreign & Commonwealth Office (FCO) African UK Government Drugs and Crime programme has focused strategically on Ghana since 2008 and is prioritising funding and other provisions to the country.

9. The MPS has been working closely with the Ghana Police Service and the Ghana Economic and Organised Crime Agency. This has delivered a number of notable convictions and the recovery of assets through confiscation orders and the Proceeds of Crime Act. Examples of these are given in Appendix 1.

10. The MPS believe that this transfer will enhance the relationship with GPS by demonstrating commitment to continuing a joint fight against crime that crosses international boundaries.

11. In recognition of the effectiveness of the relationship, the FCO has recently agreed to fund an MPS Officer to be based in Ghana for twelve months. The FCO support the donation proposal.

12. GPS commissioned a report from a specialist supplier and manufacturer of this equipment. That report confirmed the equipment was suitable for their requirement and detailed all costs associated with the decommissioning, shipping, installation, maintenance and for GPS staff training. With that knowledge, GPS have repeatedly confirmed their interest in the donation.

Air Training Corps Cadets

13. The ATC have a national membership in excess of 40,000 members aged 13 to 20 years and offer a valuable contribution to youth diversion activities in the community. These aid the reduction of crime and anti-social behaviour. In the London wing, an estimated 1,000 young people meet twice a week.

14. Radio communications are an integral part of the training activity offered and Cadets are used on a regular basis to assist in a wide range of community events.

15. The Radio Project received a number of similar requests for domestic transfer of equipment, but the ATC are the only organisation identified with authority to use suitable frequencies and that have suitable facilities for the reprogramming, maintenance and future compliant disposal of the equipment.

Environmental implications

The table below indicates the expected effect of the recommended option (compared with doing nothing), in terms of:

C. Race and equality impact

There is no known direct impact on equality and diversity matters. It is noted that there may be opportunities for indirect benefit to the relationship with the Ghanaian community within the MPS jurisdiction. This occurs through the demonstration of support for the Ghana Police Service.

D. Financial implications

1. The equipment is now fully depreciated and all support contracts have been terminated. Decommissioning is fully funded by the ring-fenced Home Office Airwave Revenue Grant.

2. The Project is in the process of finalising an agreement to sell the equipment to a UK third party on a revenue share basis. The transfer to the Ghana Police Service and to the Air Training Corps would mean that the MPS would forego potential income. This has been taken into consideration in measuring the financial implications below.

3. The proposal to transfer the equipment to Ghana Police Service provides the opportunity to avoid decommissioning costs of £128,000 offset by a loss of potential income of £39,500. The transfer to the Air Training Corps would lead to the loss of potential income of £10,000 based on 2,000 units.

Ghana Police Service donation

4. The transfer to GPS provides the opportunity to avoid the cost of decommissioning the equipment of £128,000. This is because GPS intend their supplier to decommission the equipment in a manner that facilitates the future installation in Ghana, so it will fall to their supplier to manage this from the start. The transfer will mean that the MPS will sacrifice an estimated income of £39,500 that could be realised if the equipment were sold to the prospective UK Purchaser.

Table Showing Financial Benefits Arising from transfer to GPS

• Donation of 20% equipment to Ghana
  • Base-station equipment decommissioning cost avoided (based on costs of similar sites to date) £128,000
  • Additional legal fees incurred (£3,000)
  • Possible net costs avoided £125,000
• Sell together with the balance of equipment
  • Base-station equipment - value from Purchaser at highest estimate, up to (£2,000)
  • 7,500 Hand-sets - value from Purchaser at highest estimate of £5 per hand-set, up to (£37,500)  
  • Loss of revenue (£39,500)
• Net benefit of transfer to GPS: £85,500

5. Estimated £85,500 potential net benefit to the MPS from the Ghana transfer option.

6. Values shown pertain only to the equipment being considered for transfer, currently reserved in the original installation sites.

Assumptions:

• That GPS require all of the SE region sites currently reserved for them.
• That the time required by the GPS supplier to decommission would be largely similar to that of the MPS’s own decommissioning contractor.
• That there would be no significant delay in establishing the agreement with GPS.
• Values for sale via Purchaser based on the Purchaser’s own highest estimates for the types of equipment. Market values realised may be lower.
• Future decommissioning would be broadly similar in cost to the sites already complete (average cost was applied).
• Should the Committee decide that the transfer falls under clause 14(1), as set out below under Legal Considerations, the necessary details will be updated accordingly.

Air Training Corps donation:

7. Transfer of handsets to ATC would mean that the MPS would sacrifice income that could be realised if the equipment were sold to the prospective UK Purchaser.

8. Loss of income on 2,000 hand-sets: up to £10,000.

9. As previously mentioned, there would be non-financial benefits through supporting youth diversion activities which reduce crime and anti-social behaviour and contribute to community events where ATC provide volunteer staff.

10. In exercising their fiduciary duty the Authority needs to be satisfied that the non-financial considerations balance the income loss identified.

E. Legal implications

Transfer to Ghana Police Service (“GPS”)

1. Although the transfer of equipment appears to be a donation, in the sense of a gift, because GPS will only pay the MPA a nominal sum of £1, the agreement to transfer the equipment will be a legally binding contract. GPS will pay £1 to the MPA and accept responsibility for de-commissioning and disposing of the equipment, for example which will save the MPA costs. The MPA will be able to enforce the terms of the contract against GPS.

2. DLS appointed TLT solicitors to draft a suitable agreement with GPS. DLS considers that the current draft agreement is adequate for its purpose and protects the MPA from the key risks.

3. GPS has not been sent the draft agreement yet and it is possible that it will request amendments. Therefore, the approval sought in this paper is on the basis that the draft agreement is not significantly amended. TLT and DLS will review any proposed amendments and confirm that the final version of the agreement is adequate.

4. In relation to the key risks, in particular, GPS accepts all risk in relation to the equipment from the time of decommissioning but legal title to the equipment will not transfer to GPS until several conditions are satisfied including that a reputable company tests the equipment and confirms it to be safe. In the event that these conditions are not satisfied by a date to be agreed, the equipment will be decommissioned and sold.

5. In addition, the agreement states that GPS will ultimately dispose of the equipment responsibly in accordance with Ghanaian law. However, at present there is no law regarding waste disposal in Ghana and the definition of “responsibly” will clearly vary between the EU and Ghana. Therefore, there is a risk of embarrassment to the MPA in the event that the equipment is not disposed of responsibly but DLS considers that the clause is reasonable in the circumstances.

6. On the basis that the transfer to GPS will lead to net cost savings and attract other non-financial benefits and that GPS will comply with the terms of the agreement (for example regarding export licenses and safety testing), the transfer to GPS is lawful.

Transfer to Air Training Corps (“ATC”)

7. Although the transfer of equipment appears to be a donation, in the sense of a gift, because ATC will only pay the MPA a nominal sum of £1, the agreement to transfer the equipment will be a legally binding contract. The MPA will be able to enforce the terms of the contract against ATC.

8. On the basis that the equipment will be used to promote the policing objectives of the MPA, such as reducing crime within the MPA area, and these non-financial benefits are proportionate to the financial cost arising from lost income from sale of the handsets, the transfer is lawful in principle.

9. In practice, the non-financial benefits may be difficult to measure and quantify. However, the value of the equipment is relatively low and ATC seems to be a suitable recipient,

10. There is no draft agreement for the transfer to ATC, therefore approval can be sought in principle only. The agreement will be more straightforward than that for GPS, as it is a transfer to a UK body. Subject to the drafting of an adequate agreement, DLS considers that approval could be granted in principle.

11. Part E of the MPA Standing Orders contains the Financial Regulations. Clause 14(1) states:

“Grants and sponsorship made to voluntary organisations shall comply with the conditions of grant aid approved by the Authority and shall not exceed the annual budget agreed by the Authority. The Director of Resources shall, on behalf of the Treasurer, maintain a register of grants made each year.”

12. DLS is not aware of the “conditions of grant aid” or “annual budget” referred to and cannot confirm whether this clause applies to the transfer to ATC. The Committee should decide if clause 14(1) applies to this donation and if so, seek confirmation that the conditions of grant aid are complied with and the register of grants updated. DLS can advise further on this point if requested, although further time will be necessary.

F. Background papers

• None.

G. Contact details

Report author(s): Angela McLeary, Head of International Crime Coordination Unit (tel: 020 7230 0567) and Kit Carpenter, Directorate of Information (tel: 0207 091 5756).

For more information contact:

MPA general: 020 7202 0202
Media enquiries: 020 7202 0217/18

Abbreviations and acronyms

ATC

Air Training Corps

DLS

Directorate of Legal Services

EU

European Union

FCO

Foreign and Commonwealth Office

GPS

Ghana Police Service

MoU

Memorandum of Understanding

MPA

Metropolitan Police Authority

MPS

Metropolitan Police Service

RAF

Royal Air Force

SCD

Specialist Crime Directorate

SE

South East

UK

United Kingdom

Appendix 1 – Benefits of the relationship with Ghana

Ghana is seen as a country where HMG is able to work effectively to increase capacity to support domestic objectives, while simultaneously offering excellent opportunities for reducing harm to the UK. The Foreign & Commonwealth Office (FCO) African UK Government Drugs and Crime programme has focused strategically on Ghana since 2008 and is prioritising funding and other provisions to the country.

It is hoped that, by displaying a commitment to engage with the Ghanaian law enforcement agencies, the MPS might benefit from these links and simultaneously further build upon relations with the Ghanaian community in London.

MPS intelligence suggests that West African criminal networks are widely engaged in drug trafficking, fraud and financial crime. By encouraging Asset Sharing Agreements, there is the potential for parts of the proceeds of crime to be returned to the initiating country, forming an added incentive for cooperation in enforcing confiscation orders and the seizure of criminal assets.

Through MPS support and working closely with the GPS and the newly formed Ghana Economic and Organised Crime Agency, the MPS have undertaken numerous financial crime investigations. These have resulted in the return of substantial funds to London and the UK through asset recovery and confiscation orders through the Proceeds of Crime Act (POCA).

The following recent examples give some indication of the tangible benefits in engaging with the GPS and their law enforcement agencies:

• November 2009 - As a result of Ghana evidence obtained, a convicted offender was ordered to pay a Confiscation Order in the region of £103,000 using POCA;
• GPS actively helped to pursue a number of MPS money laundering cases. In July 2009, one of these resulted in the Ghana court being able to freeze £72,500 on behalf of the UK government, which is now in a special bank account where £52,000 will be transferred to the UK;
• June 2009 - Our Asset Recovery Confiscation Enforcement Team investigated a convicted subject currently in default of a Confiscation Order to the sum of £66,000 who relocated to Ghana. Once traced in Ghana, the GPS assisted in enquiries primarily to see if the subject had any assets within the country (money or property) that could potentially be realised with mutual assistance between the MPS and Ghana.

In addition, the FCO has most recently agreed to fully fund a MPS officer to act as a Police Liaison Office (PLO) based in Ghana. Their objectives are to provide focus, coherence and clarity to the UK law enforcement operational engagement with the Ghana Police Service (GPS), to build the GPS’s capacity, to reduce the harm to the UK, specifically London, from drugs, financial crime and other related crime emerging in or trafficked through Ghana.

This PLO on twelve month attachment will not only help shoulder the burden of operational UK police requests, of which 90% come from the Met Police, but reduce the amount of overseas deployments to Ghana by Met officers (reducing time and travel costs).

The Foreign and Commonwealth Office have provided assistance and supports the proposal to donate the radio communications equipment.

Send an e-mail linking to this page

Feedback