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Damning report accuses UK government on the collapse of contract to clean up redundant fleet of Magnox nuclear reactors.

Telegraph 28th Feb 2018, The Government must share the blame for the bungling of a multi-billion
pound nuclear clean-up contract after failing to protect taxpayers from
spiraling costs, MPs have said.

In a damning report the Public Accounts Committee (PAC) accused the Government of being “culpable” in the
collapse of a contract to clean up Britain’s redundant fleet of Magnox
nuclear reactors. The Nuclear Decommissioning Authority’s £6.1bn deal was
aborted almost a year ago after it bungled how the 14 year contract was
awarded to the Cavendish Fluor Partnership (CFP) formed by Babcock and
Fluor.

The botched award led to a two year High Court legal battle which
effectively put taxpayers on the hook to pay £122m in compensation to
companies who bid for the Magnox work but failed to get it. The
committee’s report blamed the NDA for running “an overly complex
procurement process” which ultimately ended nine years early.

The NDA also drastically under-estimated the scale of the work needed to
decommission the sites at the time it awarded the contract, the report
said. The PAC said the debacle had caused “untold reputational damage” to
the NDA, but it added that the Government must share the blame for
approving the authority’s approach. Geoffrey Clifton-Brown, the
committee’s deputy chair, branded the contract “an appalling piece of
mismanagement and financial waste” which had cost the taxpayer over
£122m. The committee has asked the NDA to update MPs within three months
on its investigation into whether it overpaid its previous contractor and,
if so, how it planned to recover money.
https://www.telegraph.co.uk/business/2018/02/28/government-culpable-nuclear-clean-bungle/

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March 2, 2018 - Posted by | politics, secrets,lies and civil liberties, UK

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