September 8, 2014
Two new reports highlight major public sector procurement failings
A newly published review from the UK’s National Audit Office claim that the poor management of the country’s public sector procurement function means that fraud is widespread to the tune of tens of billions of pounds. The review found that a lack of oversight and a belief that some contracts are too important to fail open the doors to fraud. A separate NAO report also claims that the function is given a low priority and too often is more interested in just getting deals signed and out of the way than thinking about how contracts function in practice. The review into the level of fraud and overcharging in Government outsourced contracts which was carried out in the wake of the high profile of the cases of ‘bad practice’ by G4S and Serco claims that the public purse may be exposed by as much as £40 billion. Five government contracts are already under investigation by police or the Serious Fraud Office, according to the report and more will follow.