Ministers and Capita: the questions still unanswered

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Indy Politics

Questions about Capita's contracts with the Government were tabled in the Commons 24 hours before its founder, Rod Aldridge, announced he was quitting as chairman of the company.

Mr Aldridge may have lost £2m on his personal stake in Capita worth £64m as millions were wiped off the company's share price in the City before his announcement.

Mr Aldridge resigned to protect his company from further damage from "spurious" allegations about his personal loan to Labour for £1m and Capita's public-sector contracts worth more than £500m.

The questions tabled by Chris Grayling, a member of the Shadow Cabinet, which contributed to the furore surrounding Capita's contracts sought to uncover the extent of the links between the Labour Government and the company.

They include:

How much business has the Department of Transport placed with Capita Group and its subsidiaries in each of the past five years?

For which current tenders have Capita Group and its subsidiaries been invited to bid?

What meetings have Alistair Darling, the Transport Secretary, and other ministers held with directors and senior executives of Capita Group and its subsidiaries?

Commenting on Mr Aldridge's resignation, Mr Grayling said: "This was the right decision. Mr Aldridge had showed a huge lack of judgement in believing that it was appropriate for the boss of a major government contractor to lend money privately to Labour - the party in power."

Last night, the Government had failed to answer any of the questions.

Capita was this week named as preferred supplier by the Department of Trade and Industry to administer miners' liability claims.

Its website boasts that Capita "works with the majority of government departments and agencies, providing advisory services, IT, human resources, and full outsourced services".