MoD in NAO’s firing line over QinetiQ

The Ministry of Defense (MoD) is expected to come under severe attack this
week in the National Audit
(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.

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

the story in The Guardian

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