19 Apr 2006
The £71m deal EDS struck with HM Revenue & Customs over the tax credits system always seemed a bit fishy. Described from the outset as an 'aggregate' payment, it was always likely there would be some devils in the detail.
Now it emerges that the deal is not only tax deductible (a feature of such payments), but that part of it is made up of deductions against future contract wins.
The terms of the deal were confidential, and HMRC and EDS have been confidently batting off questions about it ever since the deal was signed in November.
So how did it emerge now? Apparently Sir David Varney told MPs in December in a private meeting of the Treasury Select Committee. Private enough, apparently, to mean that some senior members of HMRC themselves had to leave the room. But not private enough for someone present to disclose the details elsewhere.
Sir David is before a Treasury committee again today. What are the odds he'll say the confidentiality terms mean he can't talk about it? And will he make any reference to those who most likely leaked it? We'll see.
As for suggestions the government could be tempted to hire EDS just so it can be sure of getting its cash, I think the best one can say is the government hardly needs any more encouragement on that front. EDS has always attracted government contracts and cash by the bucketload. The £30m they are thought to need to pay back on top of payments already made is truly a drop in the ocean.
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Visitor comments Add your comment
This whole thing sucks - government needs to put its foot down - what's the point of talking about transparency and then hiding behind 'commercial considerations?' Hogwash.
Posted by: Dennis Howlett, 25 Apr 2006 | 19:06
Into the latrine (adult jokes) One day, eunuchs are thought, the emperor's everything so grand, why are there only the toilet is not it grand? As a result, eunuchs decided to look grand. One day, the emperor into the latrine, the eunuch then said: "play music, flip robes, carry Rongen, sprinkle Long urine, shaking the lead, off robes." Shortly after, the Queen would also like to look grand, eunuchs promised, so the Queen will be into the latrine, eunuchs, shouting: "play music, flip phoenix robes, open water hyacinth, and threw urine Feng, Guan Eichhornia crassipes."
Posted by: Anonymous, 13 Dec 2009 | 09:57
Exactly what do you think of Phil Jackson's comments declaring Barcelona being without level enough playing in the Nba because they could beat Lakers?
Posted by: Marla Otani, 08 Oct 2010 | 15:06