Government investigations into EDS' finances revealed

The Office of Government Commerce has commissioned two reports into the financial affairs of IT service giant EDS in the last two...

The Office of Government Commerce has commissioned two reports into the financial affairs of IT service giant EDS in the last two years.

EDS runs a number of high-profile public sector contracts including the NHS National Programme for IT and the Child Support Agency, which has suffered chronic IT failures in the last couple of years.

The OGC told the Sunday Times that it had commissioned reports from the auditor Deloitte, following a request under the Freedom of Information Act by the newspaper.

However, the OGC refused to release details of the reports, called Ranger I and Ranger II, citing exemptions allowed in the FOI Act regarding commercial confidentiality.

A spokesman for EDS confirmed the investigations had taken place as part of the regular activities of the OGC.

"EDS co-operated fully with the investigations. It is part of the OGC supplier relations work with the government’s strategic partners," he said.

Earlier this month a consortia led by EDS and Cap Gemini was shortlisted for an IT contract with the Metropolitan Police to consolidate the London force’s IT services.

In January, the House of Commons Work and Pensions Committee found that IT failures had contributed to a backlog of tens of thousands of cases at the CSA. However, the committee said that management failure, as well as technical difficulties had contributed to the failures.

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