Ministry Of Defence Budget Control 'Poorly Developed'

First Posted: 18/11/11 06:25 GMT Updated: 18/11/11 06:25 GMT   PA

Money
Defence officials spent nearly £600 million on technical advice which was intended for equipment, an internal report has revealed.

Defence officials spent nearly £600 million on technical advice which was intended for equipment, an internal report has revealed.

The audit of defence contracts since 2009 found control of budgets at the Ministry of Defence (MoD) were "poorly developed or non-existent", while civil servants made little attempt to ensure value for money, the Guardian reported.

The findings come as the MoD looks to cut thousands of military and civilian personnel but Whitehall sources insist stricter rules are now in place to make sure the problem does not happen again.

Under Labour the rules were changed to allow civil servants to bring in technical advice and support without ministerial approval as it sought to carry out ship-building programmes and other major projects.

However spending spiralled, with figures obtained by the newspaper using the Freedom of Information Act showing that the MoD spent £564 million in the last two years on contractors.

Currently, 380 firms are being employed for technical support. It spent just £6 million in 2006.

A source at the MoD said: "Clearly, under Labour the system was very loose and controls were not in place.

"This is another example of defence spending getting out of control under the previous government. The new Defence Secretary (Philip Hammond) is aware of this and is cracking down on it."

A spokesman for the MoD said: "The framework ensures that equipment programmes can access a range of technical support services such as independent airworthiness certification to ensure our military aircraft meet the very highest safety standards, something civil servants cannot provide.

"This summer the Government instigated an internal audit to assess the procurement of this technical assistance. As a result of the findings of that report, we are tightening the approvals process to ensure proper scrutiny of spending under this framework."

FOLLOW HUFFPOST UK POLITICS

Defence officials spent nearly £600 million on technical advice which was intended for equipment, an internal report has revealed. The audit of defence contracts since 2009 found control of budget...
Defence officials spent nearly £600 million on technical advice which was intended for equipment, an internal report has revealed. The audit of defence contracts since 2009 found control of budget...
Filed by Dina Rickman  | 
 
 
  • Comments
  • 16
  • Pending Comments
  • 0
  • View FAQ
Post Comment Preview Comment
To reply to a Comment: Click "Reply" at the bottom of the comment; after being approved your comment will appear directly underneath the comment you replied to.
View All
Bloggers
Recency  | 
Popularity
photo
HUFFPOST SUPER USER
Jack Glastra
My best comments are still pending.
08:34 AM on 12/05/2011
You guys should have just bought one of our surplus carriers instead of wasting a ton of money so you can have a domestic ship in twenty years.
10:01 AM on 11/30/2011
as we have more generals and officers than we need for the services we have. hows about retiring the 'old boy network'? this would save millions as we don't need them. for every contractor that gets employed by the mod there should be someone employed (who will not take back handers) to oversee that they complete their works on time!!
03:33 PM on 11/19/2011
the blaming this stuff on labour defense is becoming hella tired.
01:37 PM on 11/18/2011
This realy annoys me because you know its the old boy network getting money for old rope.We need some real people unconnected to the political classes that make these decisions regarding consultants.The in crowd are going to break this country its the same with foriegn aid,i dont believe its charitable but public funds as a favour for a favour.The taxpayer conned again.
01:34 PM on 11/18/2011
Well surprise, surprise! I wonder what the technical advice they needed was?
01:15 PM on 11/18/2011
Huge back handers that`s why. There`s more corruption in government then there is on the streets.
lastpost
see biography
01:05 PM on 11/18/2011
"This summer the Government instigated an internal audit “
One piece of free technical advice might be: Get one done on both the EU and Banking system, sharpish.
01:03 PM on 11/18/2011
Another case of missmanagement and incompetance money squandered yet they deny our soldiers, the government wants to put its own house in order before it tells others.
HUFFPOST SUPER USER
andy crapp
12:48 PM on 11/18/2011
If the lunatics running the MOD have to employ consultants, then they shouldnt be doing the job in the first place.Sack all civil servents at the MOD and employ half a dozen consultants and save £millions.
03:36 PM on 11/18/2011
A sensible suggestion. However the public gets very shirty when civil servants, or anyone else, are paid high salaries.

There is absolute opposition to paying the rates that would apply in the private sector for directors of major companies. The reality is that governments spend much more than commercial companies yet get by with lowly paid staff not subject to commercial disciplines.

We hear frequently about poor procurement by the NHS and government departments; the average pay for a director of Tesco plc is about £2 million - I bet that company doesn't let its suppliers have an easy time. However, I doubt that the public would stand for a civil servant paid as much as a Tesco director, even if it saved money.

So I expect that governments will just bumble along with the civil servants that the public are prepared to pay for and will continue to get poor value for money. Sad really.
11:57 AM on 11/18/2011
wy not do away with the mod as they clearly cannot do the job and employ the consutants
11:06 AM on 11/18/2011
Oh and another thing, there are almost as many civil servants in the mod as there are, serving service men and woman. They also have more.. generals.. than tanks. Why.
11:00 AM on 11/18/2011
The spokesman said, civil SERVANTS can't provide the highest safety standards, why the f--- are they in the job. Health and safety is alive and well in the private sector costing us millions.
10:49 AM on 11/18/2011
If the clowns running the country think they are so clever... why do they need us to pay £1000's for consultants...not as clever as make out then.
photo
HUFFPOST BLOGGER
Lawyer13
retired Lawyer, General and Psychiatric Nurse, wit
10:43 AM on 11/18/2011
You would have thought with 250,000 employees at the MoD they would not need to have the need for outside consultants, seems they don't employ the right staff in the first place. It is a disgrace.
This user has chosen to opt out of the Badges program
Mickey Mouse 1
There are no lies or deceit on a chess board.
09:25 AM on 11/18/2011
So, what's new?