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Cover-up denied after report claims MoD is squandering billions
Joe Murphy, Political Editor6 Aug 2009
Ministers today denied a cover-up after refusing to publish a report that lays bare billions of pounds of waste by the Ministry of Defence.
It is said to have found £2.5billion is thrown away each year on bungled equipment contracts, from helicopters to aircraft carriers.
The claim is hugely embarrassing because it comes after months of complaints from soldiers and their leaders that troops in Afghanistan were deprived of life-saving armoured vehicles and helicopters due to Whitehall penny-pinching.
It now appears that much greater sums were being squandered on poor handling of major contracts.
Gordon Brown's office is said to have "panicked" over the findings and banned the MoD from carrying out a promise to publish it, according to a Defence official.
The report was commissioned by former defence secretary John Hutton, who wanted to publish it before MPs' summer recess, and written by Bernard Gray, a former aide to ex-defence secretary Lord Robertson.
Among the "incompetent" decisions highlighted in the report is understood to be the construction delay of two aircraft carriers in December because the MoD had run out of money.
Although it postponed the building cost, the ministry had to pay out £500million in compensation to manufacturers.
Another failure was the purchase of eight Chinook helicopters for special forces at a cost of £422million. They sat idle in hangars for eight years waiting for alterations and the MoD was eventually forced to obtain less sophisticated aircraft. According to Channel 4 News, Mr Gray warned that up to a third of the current MoD procurement projects were underfunded.
Defence Minister Kevan Jones denied suppressing the report and said its findings would be used for a wider review of procurement early next year. He said Mr Gray was "working very closely" with Defence Minister Lord Drayson to draw up new guidelines.
"This is part of a three-stage process," he said. "The next stage, which Lord Drayson is leading together with Bernard Gray, is to see how we can actually get better value for money and better procurement."
Mr Jones said he did not recognise the £2.5billion figure and denied incompetence, but he admitted: "In terms of procurement, can we do it better? Yes we can."
Shadow defence secretary Liam Fox said the findings were a "damning indictment of 12 years of incompetence". He added: "The Government has a moral duty to ensure that our armed forces have the equipment they need for the war-fighting they are asked to do."
Reader views (14)
you only had to see the minister being interviewed on channel four news last night to see he was a worried man floundering helplessly as he tried to evade a straight answer and be as evasive as possible. talk about a cat on a hot tin roof.
yet another inept individual hoplessly out on a limb, overpromoted and inexperienced.
where does gordy get this hopless shower from.
a former home secretary, a present defence minister and now this unfortunate, all in over their heads.
- M.O'Brien, london.uk, 06/08/2009 16:38
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Bob, Cheam: I think even primates could do a better job than this lot - and they're cuter too!
- Phil, London, UK, 06/08/2009 14:01
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How come you never hear of anyone being sacked or reprimanded? If this happen in the real world the finance director would soon be out on his/her ear.
How about taking a percentage from the salaries/pension fund of everyone employed at the MOD until all the money is paid back. They wouldn’t be so blasé with our money then.
- The Agar Grover, London, 06/08/2009 12:54
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If the report is to be believed, and who is unlikely not to? Highly significant is, it would appear, that our illustrious Prime Minister has stopped the report from being published ! Whatever happened to open government.
It continues to disgust me how our politicians treat our highly courageous armed forces. If we can’t afford to do the thing right re equipment et al, why are we pretending to be a World class power anymore. Let’s leave the Americans to do their own World policing, they were keen enough to take it on.
- Ken Fitzgerald, Maldon, 06/08/2009 12:05
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It really is time that we had a re-think about the qualities and the competencies of these so-called civil servants and the not so honest politicians,their masters. An independent anti-corruption investigation would be a good start.
- Ken, Southampton Hampshire, 06/08/2009 12:05
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On and on these bunch of so called defence ministers stand in front of the media and barefaced lie cheat and twist. They don't seem to realise that they increase our hatred of them. They are the ministry of their own defence, it's costing lives a lot of lives AND IT'S GOT TO STOP NOW.
- Peter, France, 06/08/2009 11:56
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I agree with the comments already made, the only one I take issue with is the one made by Liam Fox, his 12 years of incompetence is way way out. I left the RAF about 25 years ago having served about the same amount of time. My comment is they were incompetent then and obviously still are. Pity that some of the chair borne wonders aren't as part of their contract package made to spend a % of their time where it is dark and dirty with the troops on the ground. In this I would include every politician of every party.{Before anyone comments on the lower case p in politician, it was deliberate because I don't believe they rate a Capital, pettry aren't I? Yep.
- Leonard Lowe, United Kingdom, 06/08/2009 11:52
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Surely now it is time to disband the MOD.
A procurement agency should be established under the Joint chiefs of staff, its personnel drawn exclusively from serving and ex-serving members of the Armed Forces.
We really cannot afford to indulge the whims and incompetence of this under-performing nest of idiots any longer.
- Dave, Chesterfield, England., 06/08/2009 11:28
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The report concerning MOD is a disgrace.How can any government let our armed services down so badly.How much did the bomb proof car cost for the Prime Minister?
Are the roads less safe in London then thay are in Afganistan?
TH
- Terry Holmes, LONDON ENGLAND, 06/08/2009 10:53
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This level of financial incompetence and mismanagement is, unfortunately, exactly what we have come to expect from Labour MPs. It has everything to do with the fact that they are always spending other peoples hard earned money and not their own. Maybe they should try to set up and run their own business, even if it's a market stall before they try and fail! miserably! to deal with multi-national corporations.
Is it true that Gordon Brown was the only member of the Labour cabinet in 1997 who refused to be briefed by military chiefs? ,indifference? arrogance? 8 HELICOPTERS SAT IN A HANGAR FOR 8 YEARS waiting for alterations - sorry, words fail me.
- Jean Bowater, scarborough, UK, 06/08/2009 10:51
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I don't believe it, a government department is inept??? Surely they're all highly intelligent strategists with their finger on the button? But then, at the lower levels they do pay peanuts so the employees are very likely to be primates.
- Bob, Cheam, 06/08/2009 10:27
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MoD denies cover-up?
Deepcut, Northern Ireland, Qinetiq, Iraq, David Kelly, Jean Charles de Menezes, Rendition & Torture, various Aircraft Crash Deaths, Drug Taking, Murders, Saudi / BAE Corruption, Procurement Farces, Balkan Arms to Iraq via UK.
OK the list could go on but the point is that the MoD cover stuff up! Not very well because they don't really care who knows. They can get away with what they want and nobody can do anything about it. When New Labour were voted in, again, Britain gave it's approval to corruption. That's the way it is get used to it!
Or vote out corruption and vote for a truely independent candidate at the next election. It's your choice!
- Peter B, Hants, 06/08/2009 10:26
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This is yet another catalogue of errors involving the MOD, contracts and endless losses of money to the taxpayer.
Please, please somebody "wake up and smell the roses"
- John, Lincoln United Kingdom, 06/08/2009 10:25
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You only have to read the book Lions Donkeys and Dinosaurs by Lewis Page to know that this sort of thing has been going on for years through past goverments as well as the current, its all down to back handers for contracts and not about the quality of equipment that our troops deserve .
- Doug Powell, Kings Lynn England, 06/08/2009 10:21
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