Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Firms make 'easy money' from state

 

Andy McSmith
Thursday 01 September 2011 00:00 BST
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Construction firms have been making easy profits from government contracts because civil servants do not know how to get the best value for the taxpayer, a Commons committee has claimed.

A report from the Public Accounts Committee warns about the pitfalls of private finance initiatives, which successive governments have used to get construction projects started. There are 700 PFI contracts up and running with 61 more due to begin soon.

The companies who bid for PFI projects say they make very little money out of the actual construction work. The profit comes from the arrangement that allows them to retain ownership of the project and lease it back to the state.

But MPs suspect many private firms are making a quick profit. The European Strategy Services Unit suggested that after winning a PFI contract a firm can sell equity in it at a 50 per cent profit.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in