BusinessCorporate FinanceDepartment for transport under scrutiny

Department for transport under scrutiny

MPs challenge Department to justify £10m spent on consultants

The Department for Transport has been challenged to justify £10m spent on
consultants from Deloitte, KPMG and other firms to help implement efficiencies
inspired by the Gershon review.

MPs on the House of Commons transport committee accused the department’s
finance staff of being unable to relate the expenditure to efficiency gains,
describing the failing as ‘outrageous’.

The annual report stated that the expenditure on the consultants has
‘supported a number of projects that contribute to the delivery of the DfT
efficiency programme’. It added: ‘However, it is not possible to directly relate
expenditure on consultants to efficiency gains.’

The MPs said that this indicated ‘unacceptable gaps in the department’s
financial management and monitoring systems’.

The committee report also demanded ‘independent validation’ of claimed
efficiency savings after discovering a revised technical note that showed a
considerable amount of validation would take place internally.

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