The Commons Public Accounts Committee (PAC) reports broken military procurement practices resulting in the wastage of billions in taxpayer money as the Ministry of Defence “continually fails to learn from its mistakes”.
Image: aa.com
MPs have called for the Treasury and Cabinet Office to review the MoD’s model for delivering defence equipment as a Commons spending watchdog reports that 13 out of 20 projects have run late for a cumulative total of 21 years, as examined by the National Audit Office, resulting in billions of pounds of taxpayer money going to waste.
Reviews of the MoD’s defence procurement abilities are not rare, with 13 formal reviews taking place over the past 35 years. One specific example of the MoD’s many failures is the 2014 Ajax project – a £5.5 billion spend on 589 armoured vehicles, supplied by General Dynamics, equipped with the latest digital sensors, supporting the Army’s transition to high-tech warfare. However, the procurement of these vehicles failed due to concerns of long-lasting ear damage to crews due to excessive noise and vibration – leading to 310 personnel undergoing tests for permanent hearing impairment. Currently, supplier General Dynamics has only delivered 14 (2%) vehicles for testing. The procurement of Ajax vehicles for service has been delayed indefinitely, with “no timescale” on when they will be available.
Image: forces.net
The MoD has a history of poor management of funds, previously experiencing a shortfall of £13 billion in its equipment budget due to overspending. The department’s substandard Strategic Partnering Programme is only expected to deliver savings of 0.1% of its forecasted Equipment Plan spend.
Despite Boris Johnson’s extra £16.5 billion allocation towards the defence budget, the department failed to articulate, in its 2020 Spending Review, the desired utilisation and additional capabilities that would arise as a result. Johnson promised a “once-in-a-generation modernisation of our armed forces” including the introduction of laser weapons – but the likeliness of this target being reached with a reasonable timescale is questionable.
The PAC reveals that it is “extremely disappointed and frustrated by [the MoD’s] continued poor track record” as it “lacks the skilled personnel” to manage its suppliers. Dame Meg Hiller (Labour Chair of the PAC) has demanded an emergency review of the MoD’s project management practices by the Treasury as the wastage of taxpayer money runs even further into the billions.
The Ministry of Defence has responded with claims that the complex challenges reflect its commitment to keeping the UK’s interest safe by ensuring the equipment is up to standard and promises to publish an equipment spending plan for 2021-2031.
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