Treasury tightens control of Quangos

In a reply to a critical PAC report, the Treasury said it acted under rules applicable at the time, but announced that revised guidance has been drawn up in consultation with the National Audit Office, especially where the level of risk increases because of a significant change in the responsibilities of the body concerned.

Earlier, MPs on the committee complained that the Department of Culture Media and Sport breached the rules in ‘Government Accounting’ and opened up a very real risk of taxpayers’ money being used to shore up the project.

They accused the DCMS and the Treasury of seeking to cover the indemnity by an earlier routine arrangement and insisted this should not be done when ‘the risk of a major call on voter funds is known to exist’.

In a reply to the PAC report, the Treasury denied that the indemnity created any new risk to the taxpayer beyond what had been reported to parliament and also rejected claims that it did not cover the Dome’s losses.

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