PFI deal under fire for failing to address risks

18 June 2003
More news

19 June 2003

Government watchdogs have criticised one of the earliest major private finance initiative deals for not building in measures to avoid financial risks.

Managing the performance of private-sector contractors "took a back seat" to getting the Northern Ireland Crown Court Service's Laganside Courts complex operational, the National Audit Office says.

The 16 courts, which replace the nineteenth century Crumlin Road Courthouse, opened in January 2002, three years after the contract was let.

The report was published as Paul Boateng, chief secretary to the Treasury, announced a further £9 billion worth of PFI deals in health, education and housing by 2005.

The NAO said that although the contractors, Consul Service, have performed well to date, the £40 million, 25-year contract was signed in such a way that exposes the Crown Court Service to financial risk for sub-standard service.

SMjun2003

LATEST
JOBS
Swindon, Wiltshire
upto £40K base (+ Paid overtime and corporate benefits)
Honda Manufacturing Ltd
Kew gardens, Richmond upon Thames, London (Greater)
£37,000 - £42,500 per annum pro rata, depending on skills and experience
Kew Royal Botanic Gardens
SEARCH JOBS
CIPS Knowledge
Find out more with CIPS Knowledge:
  • best practice insights
  • guidance
  • tools and templates
GO TO CIPS KNOWLEDGE