Tory questions PFI transparency
Conservative MP and member of the Public Accounts Committee, Richard Bacon, has called for the National Audit Office to launch an investigation into the transparency of private finance initiative projects.
Bacon cited criticisms by unions and rating agency Standard & Poor’s that recent bond issues were leading to ‘diminishing levels of transparency’.
The criticism follows the sale of over £1bn of PFI bonds by Metronet consortium in order to fund its takeover of part of the London Underground. Investors are now questioning the quality of such bonds and want to see less complex deal structures, according to the FT.