BusinessCompany NewsPFI costs taxpayers millions

PFI costs taxpayers millions

Taxpayers are losing out on millions of pounds because government departments are failing to benefit from financial renegotiations of private finance initiative deals.

Link: Union deals critical blow to PFI plans

Despite the introduction of a new system by the Office of Government Commerce, departments have been warned that they could still miss out if they fail to manage the new arrangements effectively.

Private sector PFI contractors have been able to gain from more favourable financial terms negotiated with their lenders as the risk of a project has diminished.

But, the National Audit Office has found some refinancings had taken place without departments being aware.

‘The private sector shoulders the risk of a PFI project and is entitled to a share of refinancing gains, but taxpayers must be able to feel confident that they also are getting the money to which they are entitled,’ said Edward Leigh, chairman of the influential House of Commons Public Accounts Committee.

The NAO report revealed that government departments benefited by at least £17m through 12 completed refinancing deals. But the report said this was out of a total gain of £65m. But since last year the OGC has insisted of a 50/50 split for most deals.

Related Articles

BDO replaces Deloitte as Mitie auditor

Audit BDO replaces Deloitte as Mitie auditor

1m Emma Smith, Managing Editor
CVR Global appoints partner in London office

Company News CVR Global appoints partner in London office

5m Alia Shoaib, Reporter
FTSE100 failing to provide adequate ethics information

Company News FTSE100 failing to provide adequate ethics information

5m Alia Shoaib, Reporter
Brand strength leads to fee income growth for RSM

Accounting Firms Brand strength leads to fee income growth for RSM

8m Emma Smith, Managing Editor
Mazars strengthens audit team with partner appointment

Accounting Firms Mazars strengthens audit team with partner appointment

8m Emma Smith, Managing Editor
Moore Stephens recruits new private client partner

Accounting Firms Moore Stephens recruits new private client partner

8m Emma Smith, Managing Editor
Magma Group announces merger, partner promotions

Accounting Firms Magma Group announces merger, partner promotions

8m Emma Smith, Managing Editor
BDO on ‘recruitment spree’ with multiple partner appointments

Accounting Firms BDO on ‘recruitment spree’ with multiple partner appointments

8m Emma Smith, Managing Editor