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Sellafield nuclear complex clean-up contract winner criticised on spending Margaret Hodge and KPMG, working for the Nuclear Decommissioning Authority, accuse group of overspending  Terry Macalister   The Guardian, Saturday 9 November 2013  A five-year extension to the Sellafield nuclear decommissioning contract worth £5bn was handed to a private consortium even though its performance had been fiercely criticised by accountants.

KPMG, working for the Nuclear Decommissioning Authority, accused the clean-up group of overspending, failure to reach operational targets and weak leadership at the atomic complex in Cumbria, according to documents seen by the Guardian.

Margaret Hodge, who chairs the parliament’s public accounts committee, said that in the light of the critical review it was “inexplicable” that the NDA was prepared to reward the Nuclear Management Partners (NMP) consortium for spending cash “like confetti”.

She also complained the critical KPMG report was not shown to her committee or the National Audit Office until the last minute. It had only been sent to the spending watchdogs via a member of the public who conducted a freedom of information request. “But having looked at the report it is inexplicable that the NDA would continue with this consortium after such a hugely critical assessment,” she added.

The NMP decommissioning consortium comprises Areva, the French engineering firm that is also working on the new Hinkley Point power station, in Somerset, which also includes URS of the US and Amec of Britain.

KPMG says it went through 28 out of 154 “bid commitments” at Sellafield and found 30% were deemed fully achieved and 4% partially achieved. KPMG added: “There is still considerable uncertainty in schedules and costs of the projects that account for 26% of annual spending” while the site manager “does not bear risks for delays and cost increases”.

There had been widespread speculation that the consortium would either see the renewal time shortened or be stripped of the work, which would be handed back to the public sector. But the decommissioning authority nevertheless gave the go-ahead to a further five years in October….http://www.theguardian.com/politics/2013/nov/08/sellafield-nuclear-margaret-hodge-kpmg-overspending