Crisis deepens at CBI after second rape allegation

Two insurers announced on Friday that they were quitting the Confederation of British as the crisis engulfing the business lobby group deepened after a second rape allegation.

The CBI has called off all public events since an allegation of rape emerged, and hired Fox Williams, the law firm, to carry out an independent investigation. Three staff have already been suspended, and former director general Tony Danker was sacked last week.

One woman claimed she was raped in 2019 at a staff party in London, where the organisation is based, and earlier on Friday the Guardian reported that a second woman claimed she had been raped by two colleagues. The newspaper said the alleged attack happened in one of the CBI’s overseas office, but did not specify where or when.

The newspaper also reported a case from 2018, where a female employee was stalked by a colleague. Although an internal investigation agreed there had been harassment, the incident was not referred to the police and the man was allowed to keep his job, the Guardian said.

Insurer Aviva was the first big firm to say it was ending its membership with the CBI, followed by Phoenix Group.

In a brief statement, Aviva said: "In light of the very serious allegations made, and the CBI’s handling of the process and response, we believe the CBI is no longer able to fulfil its core function - to be a representative voice of business in the UK.

"We have therefore regrettably terminated our membership with immediate effect."

Pension scheme The People’s Partnership also announced an end to its relationship with the CBI, while supermarket retailer Asda said it was pausing its relationship with the group.

Trade body the British Insurance Brokers’ Association said it would cancel its membership last week, while Sky News reported on Friday that Abrdn is currently debating whether to continue as a member. CBI president Brian McBride has been a non-executive director of the FTSE 100 fund manager since 2020 but is due to step down next month.

In a statement, McBride said the latest allegations were "abhorrent, and our hearts go out to any women who have been victims of the behaviour described". He added that while the organisation had not been aware of the "most serious allegations", it was now liaising with the police "to help ensure any perpetrators are brought to justice".

However, he continued: "We recognise the substance of the harassment report outline as relating to an allegation made and investigated in January 2018.

"The CBI does not recognise many of the most serious elements of the Guardian story relating to harassment.

"Neither is the CBI aware and our records do not support the report that the CBI discouraged her from referring the matter to the police."

Danker has spoken out against his sacking, claiming he has been made the "fall guy" for the more serious allegations that have continued to emerge, many of which took place before he joined in November 2020. In response, the CBI said it had strong legal grounds for his dismissal.

Fox Williams is due to publish its report early next week.