Friday, 27 September 2013

Why have Barnet paid Capita £30 million in "management fees"

In July, Barnet Council paid Capita £14.7 million for "management fees". This was supposed to be a management fee to last until the end of the year, assuming the Judicial Review appeal would take months to be heard and settled. Almost immediately after that payment the court case was brought forward and the contract was awarded to Capita. I was waiting to see whether and when most of this money would be repaid.

Today the supplier payments for August have been published and low and behold Capita have been paid another £15,223,862 for "management fees". Bear in mind that Capita took over the NSCSO contract on 1 September so none of this £30 million relates to the contract. So in two months Capita have been paid just shy of £30 million in management fees which represents the anticipated savings for the first two and a half years of this contract.

Something here is very very wrong.


  1. Presume you will ask why Mr Reasonable. One of those interim Finance Managers who probably shouldn't still be there might be able to help you.

  2. I will ask but I do not hold out hope of an answer (or at least not to the question I ask).

  3. I would say contact the external auditor, but we all know what a pointless exercise that would be. In fact, I would say this requires more serious action.