Firms make 'easy money' from state
Construction firms have been making easy profits from government contracts because civil servants do not know how to get the best value for the taxpayer, a Commons committee has claimed.
A report from the Public Accounts Committee warns about the pitfalls of private finance initiatives, which successive governments have used to get construction projects started. There are 700 PFI contracts up and running with 61 more due to begin soon.
The companies who bid for PFI projects say they make very little money out of the actual construction work. The profit comes from the arrangement that allows them to retain ownership of the project and lease it back to the state.
But MPs suspect many private firms are making a quick profit. The European Strategy Services Unit suggested that after winning a PFI contract a firm can sell equity in it at a 50 per cent profit.
- 1 Katie Hopkins attacked me on Twitter — so I reported her to the police for inciting racial hatred
- 2 Replica Back to the Future Hoverboard released
- 3 Gamers confess the worst things they've done in The Sims
- 5 Modern society encapsulated in five seconds
Costa Concordia: Shipment of Mob drugs was hidden aboard cruise liner when it hit rocks off Italian coast, investigators say
Germanwings crash: Captain of doomed plane was only 'on board because he changed job to spend more time with his children'
Iran nuclear talks: Prospect of deal with Iran pushes Saudi Arabia and Israel into an unlikely alliance
A new (old) cure for MRSA? Revolting recipe from the Dark Ages may be key to defeat infection
Jeremy Clarkson 'could be given minder' ahead of a potential Top Gear return
Ukip supporters are 55 or older, white and socially conservative, finds British Social Attitudes Report
Street preacher quoting from the Bible fined for calling homosexuality an 'abomination'
Jeremy Clarkson sacked live: Alan Yentob 'wouldn't rule out' ex Top Gear host's BBC return
Woman filmed launching racist tirade against men on the Tube for speaking in 'own lingo'
The West has it totally wrong on Lee Kuan Yew
David Cameron calls Labour 'hopeless, sneering socialists' while announcing 7-day NHS plans
£30,000 Annual: Sheridan Maine: A fantastic opportunity has arisen for a perso...
£21,000 - £24,000 Annual: Sheridan Maine: Are you looking for a new opportunit...
£55,000 - £65,000 Annual: Sheridan Maine: Are you a qualified accountant with ...
£45,000 - £55,000 Annual: Sheridan Maine: Are you a newly qualified accountant...