Andersen let off by Revenue.
The Inland Revenue will not seek further compensation from Andersen Consulting for delays in implementing the new national insurance computer system. The consulting giant has already paid £4.1m for the delays in getting the National Insurance Recording System – the now infamous NIRS2 – up and running. But Nick Montagu, chairman of the Revenue, told the Commons Public Accounts Committee last week that no more cash would be sought. Montagu said: ‘We will not be pursuing Andersen Consulting for further compensation. Our first priority has been to get it working, get it stabilised and get those parts affecting the tax payer in order.’ Last week the National Audit Office qualified the accounts of the national insurance fund citing problems with NIRS2 as a contributing factor, and expressing fears it may come into service up to four years after its initial start date of 1997. Montagu assured the PAC that the system was near to completion with only 2% ‘functionality’ still to achieve. Andersens spent #100m developing NIRS2 and has spent a further #20m since it was installed. The firm has only received a #19m fee. Andersen partner Elisabeth Anstell says the firm still expected to benefit by selling the system on the international market.