Mayor drops agency heads

David Callaghan, Planning, 16 May 2008

He has asked LDA chairwoman Mary Reilly and chief executive Manny Lewis to stand down and recommended interim replacements for both roles.

Reilly will have to resign as the mayor has the power over her post. But the board controls the fate of the chief executive and is not due to meet until 12 June, although the new chairperson may call a meeting before that date.

Johnson wants business lobby group London First chairman Harvey McGrath to succeed Reilly as interim chairman and former Westminster City Council chief executive Peter Rogers to replace Lewis.

"I was elected on a clear mandate of providing value for money for London taxpayers. It starts with the LDA," Johnson said.

"I am delighted to recommend McGrath and Rogers to act as interim heads while we launch open searches for the best qualified long-term leaders who can get the most out of the LDA in years to come," he added.

McGrath, who is also vice-chairman of the mayor's skills and employment board, is expected to recommend that this takes on some of the LDA's work. He is said to be impressed with legacy work on the 2012 Olympics.

Meanwhile, Johnson has set up a forensic audit panel to look at financial management and controls at the LDA and Greater London Authority (GLA), with a focus on allegations of corruption in the awarding of grants. It will examine possible conflicts of interest and measures to prevent fraud.

The GLA review will focus on publicity and advertising spending, the use of external consultants and agency staff and expenditure increases since 2004.

Former Sunday Telegraph editor Patience Wheatcroft, who is to lead the panel, said: "It is crucial to understand how public money has been wasted or misspent in the past to ensure that it does not happen again."

The panel will present its initial findings to the mayor within 30 days and its final report in two months. Other members include London Borough of Wandsworth leader Edward Lister and London Borough of Hammersmith and Fulham leader Stephen Greenhalgh.