Overall

PTO Association Ltd


British Parachute Association Ltd discussed Parachute Training Organisation Association Ltd during its virtual Council meeting on September 15th 2020. PTOA Ltd was formed on July 20th 2020 and has six directors. 

PTO operators and other interested parties wondered why the agenda stipulated that the discussion about PTOA Ltd would be held "in camera.". Some PTO operators who expressed interest in 'attending' the meeting have told us that the BPA replied that it was not possible as there were only eighty places.

Will the directors of PTOA Ltd be facing sanctions such as withdrawal of BPA membership and ratings in reprisal for the rebel PTOs' objections to handing over more than £1 million per annum to BPA Ltd as what amounts to a tax on their business activities? PTO owners say they risk non-recommendation by the BPA to the CAA of permissions to operate. In other words, if you cross the ghost directors of the BPA, they can effectively close your business down.


 

 

BPA : COO TONY BUTLER RESPONDS

After BPA COO Tony Butler called several PTO owners and other individuals asking if they were behind British Parachute Association Watch and this blog, we wrote directly to Mr Butler.

We pointed out that BPAW offered any organisation or individual mentioned in our blog an unfettered right of reply. This led to the email correspondence reproduced below. 

From: Roman Kandells <romankandells@gmail.com>
Date: Mon, 7 Sep 2020 at 19:34
Subject: Blog
To: <tony@britishskydiving.org>

Dear Mr Butler,

Instead of phoning up PTO owners and asking them if they are behind the BPA Watch blog, why not just avail yourself of the right of reply we offer to any individual or group mentioned in the blog?

It is an unfettered right of reply, meaning that we will publish anything you send us without altering it in any way. That way, you can prove your critics wrong and, if you prove us wrong, we will publicly apologise to you.

Ideally, a lot of these points should have been tabled for discussion and clarification at the BPA AGMs but you and your fellow ghost directors reject any motions or discussion points that you find inconvenient, don't you?

You can either use the on-site contact form or write directly to this address.

We look forward to hearing from you.

Roman Kandells
 
 
From: Roman Kandells <romankandells@gmail.com>
Date: Wed, 9 Sep 2020 at 09:17
Subject: Insurance
To: <craig@britishskydiving.org>, <tony@britishskydiving.org>
Cc: Adrian Bond <adrian@britishskydiving.org>, Paul Applegate <apples@britishskydiving.org>, Mark Bayada <mark.bayada@britishskydiving.org>, Mary Barratt <mary@britishskydiving.org>, Jack Davies <jack@britishskydiving.org>, Natasha Higman <tash@britishskydiving.org>, Kate Lindsley <kate@britishskydiving.org>, Sam Lee <sam@britishskydiving.org>, Simon Soper <simon@britishskydiving.org>, Sue Stanhope <sue.stanhope@britishskydiving.org>, James Potts <james@britishskydiving.org>


Dear Messrs Poxon and Butler

A couple of your former directorial colleagues at the BPA have alleged that not only does the firm seem to be overpaying for its insurance –– according to the figures quoted in its annual reports –– but the insurance policy is not  fit for purpose.

They say that this is why the BPA goes to extraordinary lengths to avoid making insurance claims in any case involving injury or death.

It is further alleged that the £800,000 'hole' in BPA accounts, which is attributed to unidentified creditors, is partly due to such out-of-court payouts or, in the words of one former BPA councillor, "payoffs".

As the Chair and COO of BPA Ltd, have either or both of you any comment to make in response to these worrying allegations made by former BPA directors and councillors.

Yours sincerely,

Roman Kandells
 
 
From: Tony Butler <tony@britishskydiving.org>
Date: Thu, 10 Sep 2020 at 10:57
Subject: RE: Blog
To: Roman Kandells <romankandells@gmail.com>

Dear Mark,

We will never respond to communications that profess anonymity and we never will.

Regards,

Tony Butler

CAUTION: This email originated from outside of the organisation. Do not click links or open attachments unless you recognise the sender and know the content is safe.

Confidentiality Notice: This e-mail, and any attachments, may contain personal or confidential information. Please consider this before forwarding to any additional recipients or external third parties. If you have received this e-mail in error, please do not distribute it further, notify the sender immediately and then delete this e-mail and any attachments. Thank you.
 
From: Roman Kandells <romankandells@gmail.com>
Date: Fri, 11 Sep 2020 at 15:17
Subject: Re: Blog
To: Tony Butler <tony@britishskydiving.org>
Cc: Craig Poxon <craig@britishskydiving.org>


Dear Mr Butler,

Point of order: in responding, you have contradicted yourself. So, unless we hear back from you, we shall take your response as a 'No Comment' on behalf of British Parachute Association Ltd –– and its Chairman Craig Poxon –– to the questions we put to you both.

As for anonymity, you have quite a track record over the past thirty years of, for example, telling PTO owners, instructors and examiners who displease you that the BPA will cancel or not renew their ratings. You have acted on these threats a number of times and people are understandably scared of exposing themselves to your coercive methods. 

If you had nothing to hide you would simply refute the suggestions made by BPA Watch.

Sincerely,

Roman Kandells
 
From: Sam Lee <sam@britishskydiving.org>
Date: Fri, 11 Sep 2020 at 15:35
Subject: Re: Blog
To: Roman Kandells <romankandells@gmail.com>


Hi ‘Roman’

Do you actually have any evidence to back up your many accusations?

Sam

 
From: Roman Kandells <romankandells@gmail.com>
Date: Sat, 12 Sep 2020 at 12:10
Subject: Re: Blog
To: Sam Lee <sam@britishskydiving.org>
Cc: Tony Butler <tony@britishskydiving.org>, Craig Poxon <craig@britishskydiving.org>, Adrian Bond <adrian@britishskydiving.org>, Paul Applegate <apples@britishskydiving.org>, Mary Barratt <mary@britishskydiving.org>, Mark Bayada <mark.bayada@britishskydiving.org>, Jack Davies <jack@britishskydiving.org>, Natasha Higman <tash@britishskydiving.org>, James Potts <james@britishskydiving.org>, Kate Lindsley <kate@britishskydiving.org>, Simon Soper <simon@britishskydiving.org>, Sue Stanhope <sue.stanhope@britishskydiving.org>

Dear Sam Lee,

Yes. But if BPA Ltd wishes to refute anything BPA Watch has published, with supporting contradictory proof, we offer an unfettered right of reply to any individual or organisation mentioned in the blog. As stated clearly on the blog. 

By the way, who is the 'Mark' to whom Mr Butler refers in his email to us yesterday? Whoever he is, he seems to be another unhappy camper to whom BPA Watch should be speaking.

Regards,

Roman Kandells
 

As the correspondence thread shows, we wrote to Messrs Poxon and Butler with specific questions about BPA insurance and whether it is fit for purpose. A number of BPA-affiliated PTO owners, instructors and examiners believe that the BPA's insurance policy does not cover them in the event of accidents and say that the BPA has responded to their questions with veiled and not-so-veiled threats of withdrawal of their BPA ratings. 

Mr Butler wrote to BPAW addressing his email to 'Mark'. We also received an email from Sam Lee, who was recently appointed to chair the BPA's Elite Performance Committee. If the 'Mark' to whom Mr Butler referred in his No Comment response to BPA Watch is amongst the recipients in copy or blind copy, BPA Watch would like to hear from him. 

For the time being, however, the BPA directorate and its Chief Operations Officer are making no comment regarding the allegations levelled at the firm and its ghost directors but they are trying to find out who is behind BPA Watch. Surely it would be easier just to provide hard evidence for publication refuting any allegations they claim are untrue. 

Roman Kandells 

 

BPA: CAA-APPROVED MONOPOLY?

Judging by some of the documents BPA Watch has been shown, the quangocrats of the Civil Aviation Authority don't like it when anyone suggests that the CAA not only condones the BPA strategy to establish a lucrative monopoly over parachuting in the UK but actively aids and abets the BPA in various ways.

CAA: aiding and abetting a monopoly?

A letter to a journalist from the Business Manager to the Chief Executive Officer of the CAA stated: "You have suggested that the CAA would act so as to favour or disadvanage one particular group at the bidding of another group or organisation. There is no evidence that supports this suggestion.". 

In other words, the denial came from the  very top of the quango overseeing aviation in UK airspace: Chief Executive Officer Richard Moriarty. Weighing up the evidence, anyone with half a functioning brain would recall the old adage: If it looks like a duck, waddles like a duck and quacks like a duck, there is a strong chance that it is a duck.

Gordon Duncan, the CAA official said to approve every demand made by BPA Chief Operations Officer and ghost director Tony Butler, is several pay grades below Mr Moriarty and is apparently managed by CAA Oversight Manager James Frampton. However, Mr Frampton reports directly to Richard Moriarty. 

CAA CEO Moriarty: bent?

Some former BPA directors speak of a cordial relationship between BPA ghost director Tony Butler and long-serving CAA CEO Richard Moriarty, who has been described as enjoying BPA corporate hospitality, including tandem parachute descents. Some say that the BPA has profited from this relationship. 
Some say that BPA Ltd has abused its regulatory powers to drive competitors out of business and to establish its increasingly lucrative monopoly on parachuting in the UK.

In fairness to the new CAA Chair Sir Stephen Hillier and Group Director Rob Bishton, they inherited the CAA-BPA relationship along with CEO Richard Moriarty. However, they have been alerted to a number of questions over BPA management practices under Moriarty and former CAA Chair Dame Dierdre Hutton, described in the British media as "Queen of the Quangos" and "the great quango hopper". These are two of the more charitable descriptions of Hutton, who was seen as highly unqualified for the CAA post by many aviation professionals.

Far from seeking answers themselves to these questions, CAA quangocrats continue trying to force parachute training organisations, pilots and instructors to work through the BPA. Disgruntled CAA staff have said that the orders come from Richard Moriarty and that he shares a number of personal interests with the BPA's Tony Butler.

The governing legislation stipulates that "The CAA must grant a parachuting permission if it is satisfied that the applicant is a fit person to hold the permission and is competent to conduct parachuting safely, having regard in particular to the applicant’s (a) previous conduct and experience; and (b) equipment, organisation, staffing and other arrangements.". 

In practice, however, the CAA refers all applications to BPA Ltd and if BPA Ltd does not approve these applications, they are either declined or subjected to a seemingly endless administrative process. Another method used to guarantee the BPA Ltd monopoly involves high fees that the CAA then declines to itemise. 

In one rare case concerning a PTO operator who bypassed BPA Ltd and obtained Approved Person status from the CAA, the operator received a visit from two senior BPA figures –– named as Tony Butler and Tye Boughen –– who expressed their displeasure in blunt terms. 

Shortly afterwards, the CAA withdrew the PTO operator's AP status. Not long after this, according to the PTO operator, Tye Boughen telephoned him about a upcoming examination to earn the BPA-approved examiner rating and told him not to bother attending as he would not pass the exam.  

Until recently, as BPA Watch wrote, BPA Ltd's website claimed that CAA had delegated regulatory oversight to the BPA. There are also minutes of BPA Council meetings in which this claim appears. 

Senior CAA and BPA Ltd management declined to comment but the wording on BPA Ltd's website was recently changed and now states: "We regulate our sport under an Exposition with the Civil Aviation Authority.". 

Former paratrooper and Red Devils member Ian Marshall served as a BPA Ltd Director and Council member for twenty-seven years. Marshall says of the Exposition that "the BPA ghost directorate refuses to show it to directors and council members. What are they hiding?". 

A source close to the BPA Council suggested that this very recent revision was imposed upon the autocratic Mr Butler and his cronies by CAA directors worried about BPA Watch's revelations and the  growing refusal of BPA-affiliated Parachute Training Organisations to continue tolerating some have openly described as BPA extortion and fraud. 

BPA Ltd does not seem to spend much time or money on the safety aspects of their regulatory activities, as the shocking toll of fatalities and life-changing injuries since 1996 indicates. In the financial year 2018-2019, BPA Ltd spent just over £2,100 on safety but reportedly paid its COO and other ghost directors six-figure salaries. 

Some say that BPA Ltd has abused its regulatory powers to drive competitors out of business and to establish its increasingly lucrative monopoly on parachuting with the assistance of the CAA.

Another question that clearly causes unease in the CAA and BPA corridors of power concerns the regulatory powers apparently given by the CAA to the BPA. ]

As a barrister who who acted for an airfield and parachute drop zone owner remarked: "The CAA is just a quango. It would have needed ministerial authorisation to delegate this power to the BPA. 

"However, the more salient question hiding in plain sight doesn't concern a possible overstepping of its powers by the CAA but whether the CAA even had these powers to delegate in the first place. The Air Navigation Order 2016, for instance, suggests otherwise.".

Letter of the law: no CAA oversight over parachuting?

 

The ANO 2016 as quoted above casts doubt on the CAA's jurisdiction over parachuting itself, stating unequivocally that parachuting falls under the Health and Safety Executive. Parachutists some under CAA regulations whilst abroad aircraft but once they exit and clear the aircraft, CAA authority ends 

The pilot cannot permit parachutists to exit his aircraft unless he has a Parachuting Permission granted by the CAA. Critics of the tightly-knit relationship between the CAA and the BPA say that the CAA refuses such permissions if the BPA does not approve of them. 

In this way and others, the CAA facilitates the BPA monopoly on parachuting, thereby making a mockery of CAA claims not to favour any organisation or individual over another. 

BPA Ltd has been able to amass millions of pounds over the years despite its claimed not-for-profit amateur status because, say former BPA Ltd directors, the CAA has only charged the firm a fraction of the fees that ought to have been paid according to the CAA's own Scheme of Charges. 

Others say that the millions are related in part to the BPA's income from student skydiver or temporary membership fees. As BPA Watch revealed, BPA-affiliated PTOs have to pay BPA Ltd a fee for every provisional membership related to tandem skydiving. Tandem skydiving is a £20 million-plus per annum business. 

BPA: cooking the books?


Based on published figures, BPA Watch had arrived at a figure of £1,124,600 per annum but the true income, say PTO rebels, is twice as much. Whatever the case, these figures are somewhat more than the £4,066 declared as income from temporary membership in BPA Ltd's most recently published Annual Statement.  

In addition to this, the CAA could be described as accessories to the shocking toll of skydiving deaths and life-changing injuries since 1996, when the CAA effectively delegated regulatory oversight to BPA Ltd through the Exposition to which BPA Ltd's website now makes reference.   

The forty-four known fatalities during this period aside, BPA COO Tony Butler –– employed for years as one of the firm's two national safety officers –– claims to have investigated some sixty deaths for the BPA since 1982, some which were due to negligence, manslaughter and murder.  

These temporary membership fees are in effect a fee imposed on the PTOs by the BPA in return for the BPA affiliation they need in order to have CAA permission to organise parachute courses and events. As BPA Watch revealed, the insurance BPS Ltd forces on members and temporary members seems to be worthless.

Some PTO operators and other critics of the BPA have described the insurance requirements as a scam amounting to extortion. Others say that the BPA substantially understates the income it receives from PTOs each year the levy imposed on PTO customers for temporary BPA membership. Over half of this levy is claimed by BPA Ltd to relate to insurance. 

For years, PTOs have tried to get the BPA to show them its insurance policies because the declared premiums are far higher than any estimates obtained from leading insurance brokers by PTO owners and operators. BPA Watch explored the question of BPA insurance in Protection Racket and Sidestepping the Law.

As the PTO Paper says: “BS has been in the position to set pricing without meeting too much resistance from stakeholders. This has resulted in a non-profit business where there is [sic] significant excess earnings. This may have led to poor focus on financial efficiency and less considered spending.”.

While CAA authorisations are, of course, essential for any form of flight in United Kingdom airspace, they could be provided at a fraction of the tariffs the CAA demands from applicants whilst apparently exonerating BPA Ltd from such tariffs.  

In any final analysis, the CAA could be said to be failing in its duty to British taxpayers to collect the appropriate fees from BPA Ltd. In this way, taxpayers could be said to be subsidising the cost of the shocking number of fatalities and life-changing injuries suffered by skydivers because of the failure of the regulator to regulate safety. 

BPA Ltd has been described as "allergic to Health and Safety legislation and regulations and the most recent edition of its CAP 660, published by the CAA in March 2020, seems decidedly light on Health and Safety compared to other Civil Aviation Publications. 

However, the BPA-CAA CAP 660 does appear to establish a monopoly that even extends to military parachutists. The CAA counters that CAP 660 was subjected to public consultation, an assertion challenged as stretching the truth by critics of the cosy relationship between the CAA and BPA Ltd.

The BPA is clearly attempting to establish a monopoly on parachuting in the UK and the CAA is clearly aiding and abetting the BPA in this goal. Either lower and middle CAA management is lying to the Chair and CEO of the CAA or the quango is rotten from top to bottom.

Don Canard

 







 

 


 

 


 

 



BPA COO Tony Butler


Roman Kandells

 

 

THE BPA: NOT-FOR-PROFIT?

British Parachute Association Ltd trading as British Skydiving describes itself as a not-for-profit sports association funded principally by membership subscriptions. BPA currently declares a membership of "around 6,400 full members and around 60,000 students each year." although some BPA insiders say that the average full membership over the past three years is more like 5,800.  

Full members pay subscriptions of £100 per year, of which £40 is said to be for insurance. 6,400 members would pay the BPA £640,000 in membership subscriptions. After deducting £40 per member for insurance, this would leave the BPA holding £384,000. According to a paper published in May 2020 by an alliance of twenty-one of the twenty-nine BPA-affiliated Parachute Training Organisations, the BPA receives £18.74 for each Student Provisional Membership processed by the BPA-affiliated PTOs. The authors of the PTO paper state that £11.23 of this figure is for insurance.

Taking the BPA’s student membership figures as the denominator, this suggests that the BPA receives £1,124,400 a year, of which the firm apparently retains £450,600 after the insurance premiums for each student skydiver are paid. According to BPA Ltd’s most-recently filed Annual Statement in June 2019, the BPA’s temporary membership-related income was £4,066 or around 1% of the net amount retained by the BPA in respect of Student Provisional Memberships.

In her Statement of Council’s Responsibilities, dated October 1st 2019, long-serving BPA Treasurer Debbie Carter wrote: “The Council is also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.”. However, former BPA directors and Council members say that they were unable to find out who insures BPA Ltd and how much the premiums are.

Taking the BPA’s own full and temporary membership figures as denominators, the membership subscriptions would have comprised £256,000 for the 6,400 full members and £673,800 for student or temporary members. The total of £929,800 is rather higher than the £739,542 BPA Ltd received for insurance in 2018-2019, according to the Annual Statement signed off by Deborah Carter.

In the same statement, BPA Ltd declared an expenditure on insurance of £740,728 against the £739,542 received. In other words, the BPA accounts suggest that the firm loses money on insurance. Four different insurance brokers in London suggested that the annual insurance premium should be in the region of £500,000. If this is the case, then BPA Ltd are either overpaying or cooking the books.

 

During the financial year 2018-2019, BPA Ltd spent £542,424 on staff and operating costs. The operating costs were £208,975. Senior BPA management figures say that a large part of this figure involves payments to the Civil Aviation Authority. A perusal of the CAA Scheme of Charges indicates that the BPA ought to be paying around £180,000 a year to the CAA. Put another way, the CAA ought to be collecting around £180,000 a year from BPA Ltd on behalf, essentially, of the British taxpayer.

 

According to sources within the CAA, the CAA collects around £30,000 per annum from the British Parachute Association. As of June 30th 2019, BPA Ltd held an “Accumulated Fund” containing £3,128,674. To this figure, the firm added its “surplus’ for the year of £49,801, bringing what some BPA directors have described as the Association’s “rainy day fund” to a total of £3,178,475, which is quite remarkable for a “not-for-profit sports association”.

CAA CEO Richard Moriarty

If the BPA were banking an annual surplus of £50k or its equivalent over the past few decades thanks to thrifty management and accounting, it would have taken the firm more than seventy years to accumulate its £3 million-plus cash holdings. The BPA was founded in 1960 and incorporated in 1966. However, if it is true that the CAA has been undercharging the BPA by around £150,000 a year, it would take twenty to twenty-five years to accumulate £3 million. The BPA has represented the CAA since 1996.

 

Former BPA Council members who say they were subjected to constructive dismissal tactics after requesting detailed breakdowns of the firm’s accounts, including insurance premiums and operating costs, have referred to an £800,000 hole in the BPA accounts. The June 2019 Annual Statement refers to “creditors’ who owe the firm £898,800. BPA insiders suggest that these creditors are senior BPA directors who benefit from unsecured, interest-free ‘loans’. Newly appointed BPA Treasurer Natasha Higman did not respond to emails asking about this. Nor did outgoing BPA Treasurer Deborah Carter.

 

BPA spent £24,865 on “instructor training” and a further £2,129 on “safety”, which goes some way to explaining the fatalities and life-changing injuries suffered by BPA skydivers as a consequence of sloppy safety procedures and the BPA’s endorsement of highly dangerous activities like canopy piloting as tacitly expressed by BPA Chief Operating Officer Tony Butler at the inquest into Aiden Chaffe’s death in 2018.

 

On the face of it, the British Parachute Association appears to be a fairly profitable enterprise for the small cabal of individuals running the firm rather than the not-for-profit sports association it claims to be. Most of the directors sitting on the governing Council have little in the way of any effective executive power and, as the turnover of more than a hundred directors over the years indicates, anyone who challenges the ruling cabal is quickly eased out.

BPA COO Tony Butler: not listed as a director


 

Some critics accuse the Civil Aviation Authority of complicity in the BPA’s obvious strategy of establishing a monopoly over sports parachuting in the United Kingdom. The BPA uses various methods, which British Parachute Association Watch will be investigating in future instalments of this blog.

 

These methods are said to include making it impossible for any club or organisation offering affordable entry-level parachuting to remain in business. The BPA is said to use various forms of intimidation including threats to cancel the BPA memberships and BPA instructor qualifications of any individuals or groups who displease BPA COO Tony Butler and his cronies. The BPA seems to be assisted in its aims by a government-appointed quango that prices any non-BPA-affiliated organisations out of the marketplace by overcharging them––whilst charging the BPA less than 20% of what it should be paying.

 

Roman Kandells

HSE EXEMPTS BPA FROM H&S LAW?

BPA exempted from the Health and Safety at Work etc Act 1974? Are HSE Memoranda of Understanding a legal paradox or simp...