TheDepartment of Healthhas been
criticised by theparliamentary accounts committee(PAC)
for signing a "back-room" IT deal without putting it out to
tender.
Edward Leigh, MP, chairman of the PAC, said, "By pursuing its
back-room deal with Dr Foster LLP, the Department of Health failed
in its duty to be open to parliament and the taxpayer.
"There was no fair and competitive tendering competition, as
laid down in public sector procurement guidelines. And Treasury
guidance on joint ventures between public and private sectors was
ignored.
Instead, the deal was handed to Dr Foster on a plate," said
Leigh.
Leigh said that without "the competitive pressure inherent in a
tender process" the Department's Information Centre could not
demonstrate that it had paid the best price for its 50% share of
the joint venture.
"Certainly, the £12m it paid, £7.6m of which went straight into
the pockets of Dr Foster's shareholders, was between a half and a
third higher than the Department's financial advisers' evaluation,"
said Leigh.
The Department sought to form the joint venture to improve data
dissemination capabilities across the
NHS.
Download the
full PAC report >>
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