DfT loses train of thought over risk

15 Jun 09
The Department for Transport should rethink how it reduces taxpayer risk following the collapse of London Underground contractor Metronet, according to the National Audit Office.

12th June 2009

The Department for Transport should rethink how it reduces taxpayer risk following the collapse of London Underground contractor Metronet, according to the National Audit Office.

The company, which went into administration in 2007, had a public-private partnership contract to renovate two-thirds of the tube network. An NAO report, published on June 5, said Metronet’s collapse led to delays in essential improvement works and an overall loss of between £170m and £410m. The DfT also gave the firm £1.7bn for early repayments to lenders.

Did you enjoy this article?

AddToAny

Top