DoT failed to heed NAO warning over Metronet finances

DoT failed to heed NAO warning over Metronet finances

Risk management around watching over Metronet failed to materialise depsite warnings to the Department of Transport

The Department for Transport has been reprimanded by the Commons watchdog
Public
Accounts Committee
for ignoring a warning from the National Audit
Office over the management of risks involved in the doomed Metronet London
Underground contracts.

PAC chairman Edward Leigh said officials were wrong to assume Metronet would
establish strong financial management and corporate governance and lenders would
exert strong influence — when the lenders’ role was undermined by the government
underwriting 95% of their risks.

PAC chairman Edward Leigh said: “This committee finds it unacceptable that
the Department ignored the warnings by the NAO in 2004 to avoid a hands-off
approach to overseeing the contracts.”

He demanded: “These mistakes must never be repeated.”

The collapse of the PPI contract ultimately forced on LU and former London
Mayor Ken Livingstone by Prime Minister Gordon Brown, chancellor at the time,
cost taxpayers £410m.

Further reading:

E
&Y paid £33m for Metronet administration

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

Professional Services Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine

Accounting Firms Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021

Making Tax Digital Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource