Troubled training body put into administration

The Government's national training organisation for the telecommunications industry has been put into administration following government demands to return European grants worth £10m

The Government's national training organisation for the telecommunications industry has been put into administration following government demands to return European grants worth £10m.

The move follows an eight-month investigation into the finances of NTO Tele.com, one of the Government's flagship public/private sector partnerships, by the Department for Education and Employment's special investigation unit.

The administration order will give the Education Department time to hand over NTO Tele.com's responsibilities to other national training organisations.

The E-skills NTO, which is responsible for skills and training for the IT profession, is understood to be among the organisations interested in taking over its work.

NTO Tele.com's problems began when Global Business Dimensions, a company contracted by the NTO to provide training programmes, collapsed, leaving £10m in European Social fund grants unaccounted for.

Steve Smith and Peter Godfrey-Evans of Mercer & Hole chartered accountants were appointed as joint administrators on 3 November.

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