23 January 2004
The Ministry of Defence maintained its woeful record on procurement this week with a report revealing that its top 20 major projects are running an average of 18 months late and £3.1bn over budget.
As Defence Secretary Geoff Hoon came under increasing pressure over allegations of inadequate equipment for troops in Iraq, the National Audit Office criticised the department for cost increases, time slippages and poor risk management.
Despite new projects under the MoD's 'smart acquisition' procurement scheme showing better cost and time control, they had still exceeded the agreed budget by 6.1% – or £3.1bn – in 2003. Project delays also increased to an average of 18 months, twice 2002's average.
The NAO acknowledged that the department was hampered by old projects, four in particular, which were draining resources.
Sir John Bourn, auditor general, said: 'There are encouraging signs that some projects are performing better, on cost, on time, but it is worrying that others seem to be following the historic patterns of cost increases and slippages.'
PFjan2004
