Deloitte earns over £300k from EDS reports

Big four firm Deloitte was paid more than £300,000 to twice investigate the financial position of public sector IT supplier EDS.

The government routinely orders inquiries into major public sector suppliers. As part of its monitoring of EDS, it ordered a total of four inquiries, two by the Office of Government Commerce and two by Deloitte, one in 2002 and another in October 2004. Deloitte declined to comment on the work it had carried out for the OGC.

However, according to documents obtained by Accountancy Age under the new Freedom of Information Act, the total amount paid to Deloitte for the two reports, known as Ranger I and Ranger II, was £309,919.

The Texas-based IT consultant is currently locked in talks with the Revenue over the tax credits debacle that led to delays in payments to thousands of families. The company was replaced by Capgemini as the Inland Revenue’s IT partner last year.

Accountancy Age understands that the two are close to determining whether a compensation package for the botched system is necessary. Both the Revenue and EDS confirmed that talks were ongoing, but declined to comment on their nature.

A substantial compensation package would go some way to allay anger at EDS’s handling of the Revenue’s IT systems. Despite a poor track record on government IT projects, including the Revenue’s tax credits fiasco and most recently the Child Support Agency’s IT systems, EDS was this week named as the lead supplier for a £2.3bn overhaul of the Ministry of Defence’s computer systems.

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