Inland Revenue accused of interfering in PFI
The Inland Revenue has been accused of bungling a flagship PFI deal by insinuating it may underwrite the contractors liabilities with taxpayers' money.
The allegations come from MPs and follow the release of a memo to a parliamentary select committee, the Financial Times reported today.
It showed that the Revenue considered options to prevent the deals collapse and was backed up with a letter of reassurance to shareholders.
The deal involved the selling of Revenue and Customs and Excise properties worth £220m to Mapeley Steps. But Mapeley raised financial concerns over the project just months after it was awarded.
The memo came from Sir Nicholas Montagu and Richard Broadbent, chairmen of the Revenue and Customs, respectively. It said that Mapeley had identified ‘serious cashflow problems’ and asked departments for a ‘substantial cash settlement’.