Biggest ever PFI Military Academy Wales

Watchdog sniffs around Qinetiq's bid for billion-pound defence deal 11/12/2006
http://www.publicprivatefinance.com/Document.aspx?ID=709565
The National Audit Office (NAO) could expand its investigation into the privatisation of defence contractor Qinetiq in order to examine whether the company's bid for a £10 billion defence private finance initiative contract created a conflict of interest.

The Ministry of Defence should choose a firm this month to lead its 30-year defence training programme, the UK's largest ever PFI scheme.

And a consortium led by Qinetiq, 19% owned by the ministry, is the hot favourite for the contract.But critics argue that this creates a clear conflict of interest because the government would benefit if Qinetiq wins.And Conservative MP for The Wrekin in Shropshire, Mark Pritchard, has written to the NAO, already looking into Qinetiq's privatisation, to scrutinise its bid."Most independent commentators have at least raised an eyebrow," he said. "But many are saying that there is a clear conflict of interest."And I would not be surprised if there was a legal challenge on these grounds if Qinetiq wins."

Under Qinetiq's plan, training for the armed forces would be transferred from sites in the West Midlands to a new academy in south Wales.But with elections in Wales due next year, critics also argue that Labour will give Qinetiq the contract to protect its constituencies in the region."There also is some concern that politics will play a role here," said Pritchard. "The Welsh elections and the personal political ambitions of Peter Hain [the secretary of state for Wales and potential deputy prime ministerial candidate] may not be an insignificant factor in the overall decision."Pritchard also asked the NAO to clarify whether the massive £10 billion contract will be recorded on the government's balance sheet.Less than half the total number of initiative deals are included in the Treasury's accounts.