{{Short description|Political scandal in Guernsey in 2007}} '''Fallagate'''<ref name="Telegraph-Fenton" /> was a political scandal in Guernsey in 2007, over the desire by Deputies of the States of Deliberation to appear corruption free. The desire to appear corruption free cost the island's 40,000 taxpayers £60 each, and the resulting scandal led to the resignation of Laurie Morgan, the then Chief Minister of Guernsey, and the Policy Council, a committee of the States.<ref name="Telegraph-Fenton">{{cite news|url=https://www.telegraph.co.uk/news/uknews/1542928/Guernsey-gripped-by-fall-out-from-Fallagate.html|title=Guernsey gripped by fall-out from Fallagate|last=Fenton|first=Ben|date=2007-02-17|work=Daily Telegraph|publisher=Telegraph Media Group Limited|accessdate=2009-09-15}}</ref>
==Background==
===Tender for Princess Elizabeth Hospital extension===
The States of Guernsey put out a tender to build an extension on the Princess Elizabeth Hospital in St. Andrew. Several firms put in tenders, including R.G. Falla Ltd, Guernseys largest builder,<ref>{{cite news|url=https://www.constructionnews.co.uk/archive/three-chase-guernsey-schools-deal-16-12-2004/|title=Three chase Guernsey schools deal|date=2004-12-16|work=Construction News|publisher=emap Ltd|accessdate=2009-09-15}}</ref> whose bid was the cheapest by £2.4million.<ref>{{cite news|url=https://news.bbc.co.uk/2/hi/europe/guernsey/6301743.stm|title=Ministers under pressure to quit|date=2007-01-26|work=BBC News|publisher=BBC|access-date=2009-09-15}}</ref>
===Stuart Falla=== Stuart Falla took over his father's construction company, R. G. Falla Ltd, in the 1980s, and has been a shareholder since.<ref>{{cite web |url=http://www.networkprivacy.gg/stuart.htm |title=Respecting Privacy in Global Networks |publisher=Networkprivacy.gg |date= |accessdate=2016-03-19 |archive-date=2016-03-03 |archive-url=https://web.archive.org/web/20160303194423/http://www.networkprivacy.gg/stuart.htm |url-status=dead }}</ref> In 2004 Falla was elected as one of the Deputies to the States of Deliberation for the parish of Castel,<ref>{{cite news|url=https://www.bbc.co.uk/guernsey/content/articles/2008/02/04/election_2008_castel_feature.shtml|title=Election 2008|date=2008|publisher=BBC|accessdate=2009-09-15}}</ref> and became the minister for commerce and employment.<ref name="BBC-Falla-Speaks">{{cite news|url=https://news.bbc.co.uk/2/hi/europe/guernsey/6406083.stm|title=Falla speaks out over States row|date=2007-02-17|work=BBC News|publisher=BBC|access-date=2009-09-17}}</ref><ref name="Minsters elected">{{cite news|url=https://news.bbc.co.uk/2/hi/europe/guernsey/3683233.stm|title=Department ministers are elected|date=2004-05-04|work=BBC News|publisher=BBC|access-date=2009-09-17}}</ref>
==Conflict of interest== Due to an apparent conflict of interest between his position as a Deputy, and his part ownership of R. G. Falla, Stuart Falla chose not to attend a committee meeting to discuss which bid would get the contract to build the hospital extension.<ref name="Bisson-Blog">{{cite web |url=http://www.thisisguernsey.co.uk/discus/messages/11779/16109.html?1211549323 |title=This is Guernsey Forum: 'Fallagate' Affair |website=www.thisisguernsey.co.uk |access-date=17 January 2022 |archive-url=https://web.archive.org/web/20100412110807/http://www.thisisguernsey.co.uk/discus/messages/11779/16109.html?1211549323 |archive-date=12 April 2010 |url-status=usurped}}</ref> At the time of the meeting, R. G. Falla was the preferred tender at £25million, costing £2.4million less than the next best quote.
But when the conflict of interest was pointed out, senior Deputies pressured Stuart Falla, a recently elected Deputy of the States, to either resign his seat or withdraw his bid. R. G. Falla subsequently withdrew its tender. The contract was then awarded to the next best quote, costing the States £2.4 million.<ref name="Telegraph-Fenton" />
==References== {{Reflist}}
==External links== *[https://web.archive.org/web/20071012080505/http://www.wao.gov.uk/assets/englishdocuments/Guernsey_Clinical_Block_report.pdf The Princess Elizabeth Hospital Clinical Block - Consideration of circumstances which led to the withdrawal of the preferred tender in August 2006]
Category:Politics of Guernsey Category:Political scandals