25 October 2002
The government's plans for individual learning accounts were rushed through with no proper quality assurance or security systems in place, according to the National Audit Office.
The public spending watchdog published its lacerating criticisms of the scheme, under which the government subsidised the cost of courses for adult learners, on October 25.
ILAs were abruptly wound up in November 2001 when widespread fraud came to light. By then 2.6 million accounts had been opened and £266m had been spent.
The NAO says the amount lost to fraud is not yet known and investigations could take another two years. But its inspectors criticised the Department for Education and Skills for failing to set up adequate monitoring and security systems. The computer systems, developed by business services firm Capita, were wide open to abuse.
Thirteen companies had each registered more than 10,000 accounts and 20 had claimed more than £1.5m in fees. But lax reporting procedures between Capita and the DfES meant officials were unaware of this.
The NAO also censured the department for not introducing quality controls to ensure high-standard training.
Public Accounts Committee chair Edward Leigh condemned the department's 'disastrous' failings. 'Attempting to implement the scheme too quickly, the DfES cut almost all the corners it could,' he added.
PFoct2002
