Defence chief Tony Douglas jumps ship and ‘leaves MoD in chaos’
The man in charge of buying Britain’s jets and warships is quitting after claims that his department is in chaos and struggling with rising costs.
Tony Douglas, one of the highest-earning civil servants with a pay packet of about £500,000, will leave the Ministry of Defence at the end of the year to become head of Etihad Aviation Group, which is based in Abu Dhabi. His departure from Defence Equipment and Support (DE&S), after two years as chief executive and seven months before his contract’s renewal, was met with regret by Sir Michael Fallon, the defence secretary. The department is now trying to find a replacement. “This is considered to be very bad form for somebody to walk away when it gets too difficult,” a source said. “The department is in chaos.”
Whitehall and military chiefs have been working on a review aimed at tackling a £20 billion to £30 billion shortfall in the defence budget over the next decade. DE&S must find more than £3 billion in savings as part of it, a challenge that insiders say is not being met. The department has also had to deal with the fall in sterling, which has pushed up the cost of equipment overseas. Sources claimed that Mr Douglas had been unhappy that the government had given responsibility for the construction of submarines to another agency.
“Tony has got a good job to go to, but he went out and got one because he could not stand the heat in the kitchen,” a senior defence industry source said. “He has left a rudderless, directionless and leaderless organisation.” Francis Tusa, editor of the Defence Analysis newsletter, said: “There is no positive spin you can put on this.” An MoD source disagreed, saying that Mr Douglas had left to go to his “dream job”, adding: “Not everything is a conspiracy.”
Mr Douglas, who was chief executive of Abu Dhabi airport before taking up his role at the MoD, said it had been a difficult decision to resign. “We have made very real progress on project delivery and transformation,” he said. “My decision has been made easier by the knowledge that it will remain in capable hands. I have decided to leave because I have been offered a compelling opportunity in the private sector and in an industry, unconnected with defence, which I know well.”
Sir Michael said: “I am personally very grateful for the help and support Tony has provided to me personally and been very impressed by the significant progress he has achieved in his time with the MoD. We will be sorry to lose him. I am confident that the momentum he has generated will be maintained by his executive team.”
Behind the story
The Ministry of Defence is in a bit of a mess (Sources claimed that Mr Douglas had been unhappy that the government had given responsibility for the construction of submarines to another agency.
“Tony has got a good job to go to, but he went out and got one because he could not stand the heat in the kitchen,” a senior defence industry source said. “He has left a rudderless, directionless and leaderless organisation.”
Francis Tusa, editor of the Defence Analysis newsletter, said: “There is no positive spin you can put on this.”
An MoD source disagreed, saying that Mr Douglas had left to go to his “dream job”, adding: “Not everything is a conspiracy.”
Mr Douglas, who was chief executive of Abu Dhabi airport before taking up his role at the MoD, said it had been a difficult decision to resign.
“We have made very real progress on project delivery and transformation,” he said. “My decision has been made easier by the knowledge that it will remain in capable hands.
“I have decided to leave because I have been offered a compelling opportunity in the private sector and in an industry, unconnected with defence, which I know well.”
Sir Michael said: “I am personally very grateful for the help and support Tony has provided to me personally and been very impressed by the significant progress he has achieved in his time with the MoD.
“We will be sorry to lose him. I am confident that the momentum he has generated will be maintained by his executive team.”....."