By Roger Beale
When news broke that Serco was one of the companies under investigation by the Serious Fraud Office for overcharging the taxpayer for tagging criminals, the government began its own investigation into the company, during which it is banned from winning new Whitehall contracts.
Depending on the result of the government probe, the company faces the threat of not being able to win any contracts in the future at all: something, incidentally that would cripple government plans to outsource defence procurement.
But figures revealed by the FT this morning show that whatever happens, the company will remain an integral part of the defence machinery until well into the 2020s, doing everything from training RAF pilots to building nuclear weapons. Read more
I am no expert in military logistics, but I was struck by the extraordinary recent deterioration in the performance of the surface route to the Afghan theatre.
Right now, British troops are acutely dependent on our ability to send supplies by sea to Karachi, where they are unloaded and then taken by road through Pakistan. Ahead of this week’s Public Accounts Committee, the National Audit Office provided me with a briefing based on its detailed report into the Ministry of Defence’s logistics supply chain. This noted that only 15 per cent of consignments shipped by land through Pakistan between 10 December 2009 and 8 December 2010 arrived within the targeted time of 77-87 days, a fair way off the 75 per cent target. Read more
Nick Clegg exposed a serious faultline within the coalition earlier today as he said that the “huge, huge” sums needed to replace the Trident nuclear weapon would make it harder for ministers to explain cuts in welfare and other areas.
The £20bn cost of fully replacing the ageing submarine-based weapon has already prompted a spat between Liam Fox, defence secretary, and George Osborne, chancellor, over which department should carry its cost in the coming years. Read more