Brexit & EconomyPoliticsMoD in NAO’s firing line over QinetiQ

MoD in NAO’s firing line over QinetiQ

The MoD will be in the firing line this week at the expected release of NAO’s report on the privatisation of QinetiQ

The Ministry of Defense (MoD) is expected to come under severe attack this
week in the National Audit
Office
(NAO)’s long-awaited report into the privatisation of defence
technology group QinetiQ,
which Treasury part-sold in 1990 to a US private equity company for an eighth of
its value.

‘The report will be highly critical of the whole process, in particular the
over-incentives given to senior civil servants to privatise part of QinetiQ,’ a
source with knowledge of the report told The Guardian.

Senior company executives walked away with millions when the company was
floated in 2006. Sir John Chisholm, chairman, paid £129,000 for a stake worth
£22m and Graham Love, chief executive, paid £108,000 for a stake worth £18m.

Carlyle,
the US private-equity group MoD chose as a strategic partner to prepare QinetiQ
for sale, made £300m from an investment of £42m.

Further reading:

MoD developing unmanned fighter-bomber

Qinetiq looks to future

Read
the story in The Guardian

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