CBI ‘may not survive’ after sex and drugs scandal, admits vice president Lord Bilimoria
The CBI’s vice-president has admitted that it ‘may not survive’ after being rocked by a harassment and misconduct scandal.
Lord Bilimoria has been a staunch advocate of the CBI’s work – especially in supporting firms during the pandemic – and says it is still needed.
But his comments last night casting doubt on its future expose the scale of the challenge facing new director-general Rain Newton-Smith – on her first day in the role.
Fears: Lord Bilimoria has been a staunch advocate of the CBI’s work – especially in supporting firms during the pandemic – and says it is still needed
Bilimoria, a crossbench peer and founder of Cobra beer, was president of the business organisation from 2020 to 2022. He insisted he had ‘no inkling of any issues that have come out now’.
He told LBC: ‘Of course there is a chance it may not survive, because the situation we’ve been facing the last few weeks has been absolutely horrendous.
‘I can understand how everyone feels because what has happened is absolutely shocking.’
It came as the CBI’s new boss said she was ‘profoundly sorry’ as the lobbying group was met with a fresh barrage of criticism in the wake of the sex and drugs scandal.
Rain Newton-Smith, a former CBI economist, returned as its director-general yesterday.
She took over from Tony Danker, who was abruptly fired following allegations of inappropriate behaviour by him towards several female employees.
On Twitter, Newton-Smith said the crisis had ‘shocked and saddened us all’, adding: ‘I want to recognise the courage of the women who came forward & say how profoundly sorry I am for how our organisation let you down.
‘I hope to reward your bravery by finding a better path forward,’ she said. ‘We know there is so much to do to win back the trust of our members, our colleagues and wider society.
‘I believe in the work of the CBI and our people, and I am determined to rebuild and reimagine our organisation.’
The statement came amid reports the CBI may have to axe jobs unless members return – after a mass exodus of firms choked off most of its £25million annual income.
In a further sign of how difficult that may be, GSK boss Emma Walmsley said: ‘There is no question that the allegations around the CBI are extremely shocking, pretty repulsive and I applaud wholeheartedly those who have had the courage to speak up in a difficult environment.’
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