NAO PFI report unveils ?180m of waste
NAO's PFI report says ?180m of public money are being wasted because contractors are charging unjustifiably high fees
NAO's PFI report says ?180m of public money are being wasted because contractors are charging unjustifiably high fees
Public authorities are getting ‘poor value for money’ when they ask the
private sector for additions to ongoing Private Finance Initiative (PFI)
projects, such as building and operating hospitals and schools, according to a
report released by the
National
Audit Office (NAO) today.
More than £180m of taxpayers’ money was spent on changes to many of the 500
PFI deals in 2006. NAO found most private sector PFI operators charged ‘
unjustified’ extra management fees, often as high as 10%, in addition to the
charges made by the service providers for requested changes.
Changes costing more than £100,000 accounted for 90% of spending, but only
30% of those changes were competitively tendered, while the rest was awarded
directly to the existing contractor.
In addition, public authorities were often ill-equipped to manage PFI
projects and had little idea how much changes should cost. Sir John Bourn, head
of the National Audit Office, said the public sector had to raise its game to
get a better result and use the guidance and resources available, particularly
as changes made to operational projects had not always provided value for money.
Further reading:
NAO hits five-year low on report into PFI deal
Treasury to act on PFI project ruling
The numbers you crunch tell a story. Your expertis...
16yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View articleThe Bank of England has appointed Ernst and Young LLP (EY) as its external auditor from the financial year ending 28 February 2025. Read More...
View articleThis follows an investigation into undisclosed personal loans and issues with an acquisition. Despite challenges, the company aims to achieve £1bn in ...
View articlePwC's decision to delay promotions in its graduate scheme, affecting around 100 graduates, is a response to reduced client demand and the aftermath of...
View articleTraditionally, audit schedules have been prepared manually, consuming significant time and resources. However, with the advancements in Artificial Int...
View articleThe FRC is promoting initiatives to foster a more competitive market, following recent high-profile accounting scandals. Read More...
View articleOn January 27, it was reported EY had quit as auditor to Asda amid one of its senior partners starting a romantic relationship with billionaire chief ...
View articleDespite the increased interest in AI and ML, only 12% of respondents indicate their organisations have adopted AI and ML within their audit functions....
View articleAs the government's independent investigation progresses, it is hoped that a clearer picture will emerge, leading to meaningful reforms within the aud...
View article