Few ratepayers and construction contractors thought MBW were transparently rewarded or that their property deals and tendering amounted to fair price and competition. Its status as a
joint board insulated its members from any influence of popular opinion, though all property owners had to pay for its work as part of their
local government rates. Worse, the very many building contracts issued by the MBW made membership of it desirable for anyone wishing to bid for them. The MBW took most of its decisions in secret. There were a succession of corruption scandals in the late 1880s, which led to a
Royal Commission investigation. By this time, the MBW had the moniker the "Metropolitan Board of Perks". The knub of the scandal arose from the MBW's purchase of the old
Pavilion music hall in
Piccadilly Circus in 1879, when the site was thought necessary for the construction of
Shaftesbury Avenue. As the street was still in the early stage, the site was leased to music hall proprietor R. E. Villiers. In addition to this, Villiers paid a small
sub rosa amount to F. W. Goddard, who was Chief Valuer for the Board, for favourable treatment. In 1883 Villiers met with Goddard and Thomas James Robertson (MBW Assistant Surveyor) to ensure that the remainder of the site was granted to him for a new Pavilion. They agreed to help him, in return for one corner becoming a public house under the landlordship of W. W. Grey who was the brother of Robertson, though this was not apparent. In November 1884 Robertson told Villiers that the time had come to make a formal offer to the MBW to rent the new site. Villiers offered £2,700 ground rent per year. The Board instructed its superintending architect,
George Vulliamy, to value the site: he was old and left practically all of the work to his subordinates – Goddard and Robertson (it was said by the Deputy Chairman of the Board that "Mr. Goddard and Mr. Robertson were Mr. Vulliamy"). They prepared a report valuing the ground rent at £3,000, which Villiers immediately accepted; this was then hurriedly pushed through the Board which agreed it despite a higher offer of £4,000. Ground rent was paid £2,650 for the largest part, and £350 for the corner. Goddard continued collecting secret sums from Villiers, and Grey took up the cheap corner plot – he sold his existing public house on Tichborn Street and divided the £10,000 profit between Goddard and Robertson. In December 1886, Villiers sold the Pavilion and gave £5,000 to Goddard.
Subsidiary corruption For years, vague hints had been made that the Board tended to encourage those applying for leases to employ members of the Board as architects. In particular,
James Ebenezer Saunders had been appointed as chief architect on the Pavilion, on the Grand Hotel and
Metropole Hotel on
Northumberland Avenue, on land owned by the Board did little design and oversight.
Francis Hayman Fowler, although he had done much other work as a board member, had taken money from site owners and lessees in circumstances which clearly indicated bribery. At lowest level, MBW's Assistant Architect, John Hebb, had responsibility for inspecting theatres for safety. He began to write to the managers of theatres with upcoming inspections to suggest that they might want to send him free tickets. Given the power of the board to close theatres, most complied. However, displeased by the inspections themselves, and by the attempt to extract gifts, the managers tended to send Hebb tickets for seats that were at the back of the house or hidden behind a pillar.
Royal Commission The Goddard-Robertson scandal was revealed by a series of articles in the
Financial News beginning on 25 October 1886. The Board itself undertook an incompetent investigation under the Chairmanship of Magheramorne, which found Robertson was "injudicious in allowing relatives to become tenants of the Board without informing the Board" but could not find anything worthy "of more severe censure". Anti-Board campaigners were not pleased and kept up the pressure. On the motion of
Lord Randolph Churchill (who represented
Paddington South where anti-Board feeling was at its highest), the
House of Commons voted on 16 February 1888 to establish a Royal Commission to inquire into the Board. The commission was headed by
Lord Herschell and found the main allegations of the
Financial News to have been correct, and indeed understated. Some other scandals were also discovered including the corruption of architects who were members of the Board. However, the Commission repudiated the view of critics that corruption was endemic in the Board. While the Royal Commission was still preparing its hearings, the
President of the Local Government Board Charles Ritchie announced that elected
County Councils were to be created throughout the United Kingdom. Without much opposition the Bill had clauses that, on passage into an Act, divorced MBW's ambit from the power-weak Quarter Sessions and other Courts of
Surrey,
Middlesex and
Kent to turn it into a county with an elected London County Council. This matched the aims of anti-Board campaigners, principally the
London Municipal Reform League. ==Abolition==