Auditors attack MoD over spending

Link: MoD accounts cleared

Sir John Bourn, head of the NAO, said that in the last year costs on the MoD’s 20 biggest equipment projects have increased by £1.7bn. On average, the projects have been delayed by three months each.

The NAO said it expected to see more problems on these projects in future. The total cost of the projects is now expected to be £50bn, 14% higher than original estimates.

Many of the problems are linked to a lack of time and resources spent in the assessment phase, the investigation found.

Projects less than halfway through their procurement are already expected to be delivered later or to cost more than approved. The 15 most recent projects are said to be moving rapidly towards their ‘not to be exceeded’ levels with six already in breach.

Sir John Bourn said: ‘There must be greater certainty as to when equipment will be ready for service and there must be greater control of costs. If not, some capabilities may have to be foregone or delayed to compensate for rising costs. It is of particular concern that newer projects are already showing increases.’

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