PracticePeople In PracticeCommittee questions Andersens’ computer role

Committee questions Andersens' computer role

A powerful Commons select committee has questioned whether Andersen Consulting should have retained intellectual property rights to a major government computer system.

In a report into the National Insurance Fund, run by the Inland Revenue, and its IT system NIRS2, the Public Accounts Committee has questioned whether it was a good idea to allow a contractor to retain full rights as Andersen did.

The AC implemented system has been fraught with problems and is well overdue. Some parts were implemented in 1998 but the PAC is concerned that it will not be fully functional until April 2001.

Andersen’s bid for the work was accepted because it was so low, largely as a result of the £100m value they placed on the property rights.

The PAC report said: ‘In our view the Inland Revenue and more widely the Office of Government Commerce, should look again at the balance of benefits and risks underpinning decisions on ownership of international property rights in major government systems.’

Revenue under fire over IT contract

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