Showing posts with label Barnet Council Outsourcing. Show all posts
Showing posts with label Barnet Council Outsourcing. Show all posts

Tuesday, 17 September 2013

IBM throw in the towel at Southwest One - Are you watching Barnet

IBM who were the major shareholder of the Council outsourcing group Southwest One have sold their outsourcing business to the American Synnex Corporation. I am indebited to Conservative MP Ian Liddell-Grainger for alerting me to the demise of Southwest One on his blog.

Southwest One has been a problem from the start Not only has it run up liabilities of £45 million but is has only delivered a small fraction of the intended savings. As always it there is lots of talk about future/forecast savings but actual savings delivered are small.

The latest accounts show that the company is only remaining solvent because of IBM's support.

 So now that IBM's shareholding has been sold to Synnex, what will happen to the on-going business? Mr Liddell-Grainger reproduces an email sent to staff this week which says:

"We are currently working through exactly what this might mean for Southwest One.  As soon as we are in a position to give you any more information about this situation, and any impact it may have on Southwest One, we will update you as soon as we can."

So the poor staff are left in limbo but what about the services they are supposed to be delivering? Synnexx will use their wholly own subsidiary Concentrix to run the business and let's hope for everyone's sake they can sort out this mess.

 What really worries me is Barnet have entered a similar style joint venture contract with Capita for the DRS contract. Could we in Barnet be exposed to the same sorts of risks that have befallen Southwest One? We don't know because we aren't allowed to see the contract or any of the legal advice Barnet have been given. We just have to hope and prey that Capita make a better job of running things than IBM did at Southwest One.

Sunday, 8 September 2013

Barnet DRS joint employment contracts - are they legal?

Tomorrow is the General Functions Committee at Barnet Council. The agenda and meeting reports can be viewed here.

Right from the outset there has been a concern about outsourcing development and regulatory services because some of these duties are statutory responsibilities which cannot be delegated. The way Capita have wiggled round the problem is to set up joint contracts. These contracts mean that for part of the officers' duties they are an employee of the Joint Venture which then can mysteriously morph into a Council employment contract as they for example walk through a door or step into a witness box

On 5th August Capita wrote to the Council stating on the joint employment contracts:
"Due to the specialist nature of this situation, Capita Symonds & LBB are currently working through the practicalities of this model and therefore future measures will be confirmed in respect of the Joint Employees once both parties have had further discussions".

So what they are saying is this is a one off and they are not sure if Joint Employment contracts will work - and this is just one day before the contract with Capita was signed by Richard Cornelius. John Burgess from Barnet Unison has written to the GFC which includes the following:

I want to draw your attention to the GFC report section 4 Risk Management Issue No 3 states:
“Staff currently carrying out non-delegable statutory functions may choose not to sign the joint employment contract to allow them to carry out these activities post transfer.”
I can report that following the joint attendance workshops many staff were even more confused and concerned about the credibility of this as an option to enable staff to carry out their non delegable statutory duties or functions. It is now six weeks since these workshops took place and staff have still not seen any answers to the questions they raised.

The presentation included practical examples of how the proposes joint employment contract would work. This presentation was flawed as staff quickly spotted false assumptions about decision making. What didn’t help was that on each example it said “ILLUSTRATION ONLY - NOT FACTUALLY CORRECT”
This led staff to ask if legal advisors Trowers had been asked to give a legal view of something that was factually incorrect. 

A number of staff have said

“All it will take is for a clever lawyer acting on behalf of a business or resident to start to challenge whether the officer made the enforcement decision as a employee of the Council or Capita. If a challenge is successful then joint employment option will no longer be able to be used to carry out non delegable statutory duties or functions, and this would put the Council at risk of not being able to discharge its statutory duties and functions”

So there you have it. Richard Cornelius has rushed headlong to sign a contract which legally may be virtually impossible to operate or may be subject to legal challenge the first time staff try and enforce their statutory duties. The legal advice is unclear and untested. What a complete and utter mess. I shall be there tomorrow evening to see how the loyal but unwhipped Councillors try and talk their way out of this one.


Friday, 9 August 2013

The Cost of Contractual Disputes - Pay Attention Barnet

Southwest One, the outsource contract in Somerset, ended up in dispute when the council were sued by their outsourcing partner. The dispute has now been settled but the process has racked up a huge legal bill. As revealed in a Freedom of Information request the total legal bill came to more than £2.6 million. The lion's share of fees went to Pincent Masons but it was interesting to see that Barnet's lawyers Trowers & Hamlin were also in receipt of fees in 2011/12.

Perhaps Barnet should think about setting aside money for legal fund now.

Wednesday, 7 August 2013

Capita's takeover of Barnet

For the last four years, since the subject of Futureshape, (later EasyCouncil and One Barnet) was first mentioned I have been asking questions. Not rude questions, not ideological questions, just questions about how such a massive contract will work in practice and how it will be administered. In my day job I have been working on outsourcing/competitive tendering of service contracts since 1986 so those questions are based on my experience not just random thoughts.

All the way through the process I have never had a straight answer, I have had misleading answers, false answers and answers to different questions. The public have never been allowed to see a copy of the contract, indeed at one stage the council denied a contract existed (because it was a draft).

I have raised concerns about the length of the contract - I still do not believe there is any clear justification for such a long contract other than it is what Capita wants. I am worried about the level of power and control Capita will exert over the council - with so many services under one contract, even if some go into meltdown the council will be unable to terminate the contract as they simply will not have the resources to take it back in house at short notice

I am worried about the fact that all of the council's data will be held and administered on Capita's servers in a Capita office in the North of England (or further afield) with only the promise that the council can access that data at the end of the contract at a "reasonable cost".

I am worried about fraud and conflict of priorities between ensuring new council tax benefits claimants are registered quickly and the need to identify fraudulent claimants.  I am seriously concerned about the shift in emphasis that may take place in planning decisions where four out of five are delegated to officers when there will be an incentive to maximise the new homes bonus and build as many new homes as quickly as possible.

I am worried about the role of managing agent for procurement of third party contracts Capita will assume even though it was never mentioned the original tender document and the ability Capita will have to influence contracts with care providers for the most vulnerable in our society.

There are many other real concerns about the way this contract is structured, about the millions of pounds of management fees that Capita will receive but most of all I am concerned that throughout the process there has never been any independent oversight, no due diligence no scrutiny whatsoever other than that attempted by the residents of Barnet. That isn't just naive and stupid, it is downright reckless. The council's response is that they have had legal and professional advice but these are the same advisors who have been pushing this outsourcing juggernaut from the outset so they are definitely not impartial or objective.

All the way through the process I have been told that there is no alternative, there is no Plan B. Well frankly that is nothing short of an admission of failure; a failure to think creatively a failure to work collaboratively with the workforce, a failure to ask residents what they want and if they believe handing so much control to one company is in the best interest of the residents.

The council has spent over £7 million with just one firm of consultants and many millions on other professional and legal advisors to promote this outsourcing contract. Yet if only half of that money had been used to invest in new technology, new working practices, a rationalisation of council buildings, then the savings could have been made whilst retaining the flexibility of a service under our direct control.

Only a handful of councillors have pushed this contract through with the remaining Conservative councillors doing as they are told through whipped votes. I genuinely do not think they really grasp what they have done. They have given this contract to Capita in perpetuity because with so many services bundled together it will be almost impossible to bring them back in house at the end of the contract and it will be exceptionally difficult for any other company to take over because of the way Capita will have integrated the various council functions into numerous different locations within their own organisations.

Hundreds of Barnet council staff are going to be made redundant in the next three months. That will have both a social and economic impact on them and the borough. Some families will be forced to move some may lose their home, many will end up on benefit which we as taxpayers will all have to pay for so that a private company can prosper. How many children will suffer when they have to move schools. These are not a by product of an outsourcing scheme, they are people with lives that will be damaged. Local shops and tradespeople will lose the spending power of all those staff but none of this has figured in any of the calculations about savings that will be made.

Capita may have won the contract but Conservative councillors may have just lost themselves the next election especially when things start to go wrong and we as residents start to experience the problems. The items that weren't written into the contract, the services levels that weren't quite agreed properly. I intend to request a copy of the contract and in particular details of the key performance indicators. The council will no doubt try to claim commercial confidentiality but I see no successful defence to that as Capita are in now and they will have no competition for  at least ten years. I will make sure as many residents understand those key performance indicators as possible so that instead of a team of three or four contract monitors there will be 10,000 people each checking how Capita are performing.

Capita, I think you may come to regret the day you ever entered a contract with Barnet.

Wednesday, 5 June 2013

Barnet DRS Savings - an Equitable Split?

Going through the DRS Business Case which will be discussed at the Budget & Performance Overview & Scrutiny Committee  on 11 June, there are some very strange numbers which I hope to explore in a bit more detail.

The basis of awarding the contract to Capita is that they will "save" £39.1 million over 10 years of the contract. When you dig into the figures the reports says that actually the £39.1 million of savings are made up of £5.3 million of cost reduction and £33.8m of "net income growth". So on the face of it Capita aren't going to make that much of a cost reduction but they are going to hike up prices to customers (like you and me) and sell DRS services to other local authorities.

However, if you read the detail within the report and buried away on page 38 in Table 8.2 there are some percentages for cost savings which start to illustrate just what a convoluted contract this really is. What is says is that Capita envisage making cost savings of 21%.  The report says that Barnet will receive 3.5% of that 21% and that equates to £5.3 million. They also state that 4.5% of the savings will be reinvested which equates £6.8 million although I can't quite understand where that reinvestment will take place other than to fund the investment Capita are already claiming in IT software and hardware. But then we come to the key figure which is the value of cost savings that  Capita will retain. Based on the report, this suggests that Capita get to keep £19.7 million.

So let's just look at that again. Capita cut costs by c£31.8 million, Barnet get to keep £5.3 million of that and Capita get £19.7 million with the balance reinvested. Now to me that looks like a rotten deal and a long way from what I would see as an equitable split.

Barnet will apparently receive £33.8 million of net income growth but what worries me is that someone will find a reason for that income not to be realised yet Capita will get to keep the lion's share of the cost savings. Surely Barnet should have said "we will keep most of the cost savings and you get to keep most of the new income growth". All very strange and hopefully more will be revealed at the meeting next week. More on the DRS contract tomorrow.


Tuesday, 21 May 2013

One Barnet DRS Contract - A huge over dependence on new business

Looking back at the original DRS business case as published in March 2011, the rationale for undertaking this outsourcing programme was to save costs. Two years on and we now have the bid from Capita. On the face of it it looks amazing. Capita will save the council £39.1 million over the 10 years of the contract but when you look in more detail it is clear that 86% of those savings are actually generated through increased revenues not cutting costs.

That means that Capita will have to go and sell services provided by council staff to other local authorities like Harrow, Brent and Enfield. Now this is something we have seen before especially in the SouthWest One contract. In that case the additional sales never materialised and the joint venture contract ended up in very expensive litigation. The additional workload is huge to generate this extra revenue yet the overall numbers of staff remain the same. We already know that there are not enough planning staff and that is why we have had to subcontract out the planning requirement for the Brent Cross development so how on earth are they going to deal with this huge increase in forecast workload. Staffing levels in Planning, Environmental Health, Building Control and Regeneration are all going to be cut.

It also means that Barnet residents will end  up paying more, especially for services like burials and cremations and a share of that increased charge will go back to Capita.  In the business case report that you can read here, they talk about generating additional income from "Pre-purchased graves, extended opening hours and additional cremation activities". Interestingly, the number of Cemetery and Crematorium staff are scheduled to increase by 80%. Given that it costs £8,447 for a non LBB resident to be buried in Barnet (almost double the cost of a Barnet resident), I am not sure how many additional burials they are going to generate. They may wish to generate a lot more out of borough cremations but that will mean that local residents will have to wait longer for their loved ones to be cremated unless they choose an early morning or late night slot which personally I find utterly disrespectful and unacceptable.

Set out below is a comparison of what was in the original business case and what we have been presented with now. What I want to know is how come the original business case was so wrong and just how risky is it to be dependent on so much additional growth in selling services to other local authorities. But we will never know because we are not allowed to know any of the real details and, as Lord Justice Underhill was so clear in saying, we were never consulted about this contract.
 

DRS Business Case  28 March 2011
Capita Tender
Change since original Business Case
Cost Reductions
£19,703,105
£5,300,000
-£14.4 m
Revenue Growth
£10,303,005
£33,800,000
+£23.5m
Total  Savings
£30,006,110
£39,100,000
+£9.1m



 This looks incredibly risky but you can be guaranteed that our councillors will simply accept what they are told by council officers and the highly paid anonymous consultants from Agilisys/iMPOWER because that's all they ever do. If the Council are so confident in the figures then be open and transparent and let us have a detailed investigation, let us undertake a proper sensitivity analysis (not the feeble attempt shown in the business case report) to see what happens if these additional sales fail to materialise. Will that happen? Not in Barnet where democracy has been outsourced.















Friday, 15 March 2013

2e2 - When Outsourcing Goes Wrong


A Joint Post from the Bloggers of Barnet

Barnet Council have been having trouble with their IT infrastructure for some time. Back in 2011 an internal report identified that the Council was having difficulties with their IT Infrastructure Supplier, 2e2. The report stated that:
2e2 contract was put in place to transfer the operational management and risk of core infrastructure to a private provider. 2e2 no longer feel responsible for this and have passed all risks back to the council, on the basis that all equipment has reached EOL (End Of Life)”.

The report identified that a key risk was that,  “2e2 will pass all risk back onto the council and not deliver to their contractual arrangements” and that to mitigate that risk the council should, “Improve the relationship with 2e2 and look into terminating the 2e2 contract early and bringing services and staff, under TUPE, in‐house, if necessary”.
 
Unfortunately, Barnet ignored its own advice and continued to engage 2e2 at a cost of over £1 million a year, including an annual up-front payment of £400,000. In January 2013 2e2 went into administration and withdrew its services. This leaves Barnet £220,000 out of pocket for the unused up-front fees and scrabbling around to find someone else to run the IT infrastructure, without which the council would struggle to function.

To get themselves out of a hole quickly, Barnet Council have appointed Capita, without any form of tender, on the basis that it was an emergency and they had already had discussions with Capita to take over the running of this service. This new contract will cost £72,595 per month. 

The Council states that they did undertake a risk analysis of 2e2 in January “using Experian reports” and that “the report stated the company was satisfactory”. However a quick check on the internet would have shown that suppliers have not been able to get credit insurance on goods supplied to 2e2 for some time and that 2e2 were handed a number of County Court Judgements in 2012.

If Barnet had simply followed its own risk register advice back in 2011 and brought the service back in house, we would not be in this position. It also shows the massive risk that comes with outsourcing key services and that even large companies can go bust. 

Barnet need to stop taking risks with our services and abandon One Barnet now. 

Signed

Derek Dishman
John Dix
Vicki Morris
Theresa Musgrove
Roger Tichborne

Friday, 8 February 2013

Guest Blog - 'Scepticism and Opposition' to One Barnet In a Tory Heartland

Mr Reasonable is happy to replicate a guest blog from Barbara Jacobson of BAPS on the presentation of One Barnet at the recent HGS Residents Association meeting. This bear out my experience, that when informed of the details of One Barnet outsourcing, people with an ounce of common sense, from whatever political persuasion, see it as a recipe for disaster.


Meeting of the Hampstead Garden Suburb Residents’ Association
The advertisement for Hampstead Garden Suburb Residents’ Association open meeting on 5 February reads  ‘OneBarnet’,  ‘Deputy Leader to speak: outsourcing explained’ , ‘An opportunity to learn what is being outsourced and why recycling is being brought in-house’,  ‘Cllr Daniel Thomas, a Suburb resident and Barnet deputy leader, will speak’ ; we might have added ‘at long last’.  For more than two years Cllr Thomas has been one of the two Cabinet members leading the One Barnet Programme, pushing it ahead without consulting or informing the residents, and refusing to listen to the more than 8000 who have been informed by BAPS and have signed the petition for a referendum.

Elsewhere it was said that the meeting would be ‘factual, not political’. Another aspiration not achieved. At the meeting Cllr Thomas declared that he is a politician and wants to be re-elected, so perhaps it was with the election of 2014 in mind that he accepted the invitation to appear before this small gathering of his neighbours (about 40 residents of the Suburb and 10 residents from other parts of the borough) in the hope and expectation that they would approve of his version of the OBP. It was not to be.

 Cllr Thomas started confidently, extolling the excellence of Barnet’s public services – the third most efficient in London’, with one of the ‘most low-cost back-office’ operations – yet stating the need to save money because of the cuts in central government funding. That might have been deemed to be factual, but the explanation of ‘transforming the council’, of a ‘new relationship with citizens’, that Barnet was moving to a commissioning model, and the way in which the savings would be made – privatization – was purely political.

He explained that the next wave of outsourcing, the DRS, would be a joint venture (JV), that it was a ‘new concept to put these services out’, and would give the council more control –not, presumably, more control than full ownership, only more control than complete privatization. The JV would also provide scope for the council to make money, as other councils would come to Barnet to do their planning work. Current staff were not trained to be commercial, so are being replaced with people who are. He admitted that work on the JV was and would remain on hold until after the judicial review of the NSCSO contract.

He repeated the well-rehearsed lines: how much adult and children’s services cost, how much the Capita contract would save, what a small proportion of the budget the NSCSO is, that risks were mitigated by a parent-company guarantee, that the contracts would be monitored and could be benchmarked if necessary, that without these measures council tax would have to be increased by 38 per cent – again failing to say ‘over ten years’. He said bringing recycling back in-house was proof that the Cabinet was not ideologically driven. But, contradicting himself again, he said that the One Barnet Programme was a [central] government pilot. He and Cllr Andrew Harper, in attendance as the HGS ward councillor, seemed surprised to be met with nothing but scepticism and opposition.

The newly informed residents questioned the validity of the monitoring system, the risks of and lack of competition inherent in a 10-year contract, the probability of failure, the way the ‘customer services’ would work, whether procurement was being outsourced (the councilor had neglected to itemize the services, just referring to them as ‘back office’), whether councilors should have lower allowances or were needed at all. These residents told the councillors that monitoring and KPIs allowed companies to ‘game the system’ – that is, assess their own performance as compliant even when it was not – and that no private supplier of public services had delivered the savings it promised. They countered Cllr Thomas’s claim that NSL was delivering on budget, and told him about the 60% parking-ticket-appeal success rate, which he and Cllr Harper said they would have to look into. The residents were not impressed by Cllr Thomas’s explanation that private companies made savings over what he had said were the very efficient Barnet services by paying their staff less and giving them fewer benefits but offering them better career opportunities. They exposed the inconsistency in his saying Capita had up-to-date software and systems for running Barnet affairs but somehow need to invest £13 million of Barnet money in IT, which Capita would then own. They did not accept that financial penalties for failures and the possibilities of renegotiating aspects of the contract after four years were sufficient safeguards, pointing out that the council would be tied up in legal arguments by Capita to counter any penalties.  They suggested it would have been better just to hire top managers from the private sector to run council services more efficiently than to contract out. Cllr Thomas’s explanations of why the council couldn’t run the public services as well as a private company sounded like he just thought the job was too difficult for him.

Cllr Harper said monitoring would also result from feedback by individual residents. He was asked how much impact those individual’s voices would have when the Cabinet ignored a petition signed by more than 8000 residents. Cllr Thomas trotted out his ‘that’s only 2 per cent’ of residents line, and the dismissive ‘people will sign opposing petitions’; does a politician really think he’s scoring points by suggesting that his electorate are so stupid? We countered that the 8000 was not a result of canvassing the entire borough, that BAPS was trying to get only 7000 signatures. We could have added, 8000 is a lot more than the 11 Cabinet members solely responsible for the OBP.

Cllr Harper’s other contribution was to say that the Tories had frozen council tax, a comment that was almost jeered.

In reply to a question about Capita’s appearance on the Barnet website, Cllr Thomas said that Capita had started working with the council after the decision in December to award the contract. There was no opportunity to ask whether the parties should have waited until signing the contract before this work began.

The foregoing is, of course, a summary, not a verbatim account (except where quotation marks are used), so comments are not attributed to individuals. There were no voices supporting Cllr Thomas’s presentation. While there’s no knowing what the silent minority thought,  on their way out, the residents were offered the Barnet Spring March leaflet, and I think only one declined it.

It is interesting that the Cllrs Thomas and Harper did not initiate this event, and that elsewhere in the borough Tory councilors have not appeared before their constituents to explain the OBP. After this showing, they will probably be even more reluctant to do so.

Wednesday, 19 December 2012

Capita Week - Day Three - Staff Morale

With so many Barnet staff being transferred over to Capita  (along with 200+ being made redundant) I thought I would look and see what staff say about Capita. Some staff seem happy enough but many staff seem deeply dissatisfied.

This link is to a website of reviews by Capita staff. Some of the comments are good but many are not and include the following:

  • "Frustrating inability to deliver tools to do job"
  • "A living nightmare, apart from some good co workers"
  • "Under values employees, vast pay inequalities"
  • "Frustrating"
  • "Soulless business only interested in the number"
  • "Shambolic Management"
  • "Capita needs to be employee centric and not management centric"
  • "Good work/life balance however they pay extremely poor salaries"
  • "Good!! I spent 7 years with Capita & it is an experience I will remember for the rest of my life" (employee in Mumbai)
  • "Excellent place to work"
 In August this year Capita's IT services staff voted to go on strike after they were notified of redundancies as jobs are moved to India. At present there are no plans to move Barnet jobs overseas, but will that promise still hold when cost savings are under pressure?

Capita is a FTSE 100 PLC. It has shareholders to keep happy and as a result it will do what is right for them. However, that may conflict with the objectives of a local authority and it may offer a completely different culture for staff. I hope that Capita can deliver on the promises in their bid but I suspect that many of the comments above may be echoed around NLBP once Capita take over. Happy and motivated staff are best placed to deliver great service. If staff are unhappy it will be much harder for residents to receive the service they deserve. Maybe that is why there is a major focus on replacing people with technology.

Tuesday, 18 December 2012

Capita Week - Day Two - Revenue & Benefits

Last week someone kindly sent me an email regarding the blog I posted about Revenue and Benefits (Revs/Bens) and  Corporate Anti Fraud Team (CAFT). Set out below is what they said.

At the moment Revs/Bens is 2nd in the league table in London for performance indicators - this is the means by which the Department of Work & Pensions  (DWP) record our performance i.e how quickly we assess new claims and change of circumstances. 

Now bear with me here. Our new claim Performance Indicator (P.I.) is currently about 12 days which is outstanding, despite being massively understaffed. This has been helped by the face to face process introduced where by appointments are made and claims assessed directly at the point of submission.  Giving a low P.I. 
 
Now our friends at Crapita have promised, and I believe this is in the contract, to deliver 10 day P.I's for new claims made. Now the point here is they cannot use face to face facilities based in Blackburn. The only way to achieve such a P.I is to totally disregard the verification process. We expect claims to be processed via the phone. i.e you phone up state your circumstances - the claim is assessed and you write for the verification afterwards.
Open to fraud?! 
 
I know the Corporate Anti Fraud Team (CAFT) are very concerned about a potential lack of verification and no signature on a declaration. It is impossible to achieve a 10 day P.I any other way from outside the borough unless Crapita simply don't care and have no intention of making good that promise of course! 
 
Loads of fraud is flagged up through local knowledge. We know the tenants / landlords who are repeat offenders and addresses in the borough with history. 
 
I thought this needed a bit more digging so I had look at other Councils where Capita operate revenues and benefits. I came across a number of issues in Sheffield with people complaining about how long it took for Capita to deal with housing benefit claims.

There were some very sad cases of delays and unhelpful call centre staff here. More worryingly and linked to the issue of fraud, I came across some statements (which may be false) that last year Capita moved staff dealing with fraud over to dealing with new claims. My view always has been that KPIs can be a blunt tool that unduly focus attention on specific outcomes at the expense of other equally as important deliverables. If the contractor is rewarded for meeting a new claims KPI but not measured on fraud there is inevitably a risk that priorities will be changed.

While I was having a look at Sheffield I also came across their annual complaints report which can be downloaded here.



Table 1a: Complaints recorded on Council’s complaints management system
Complaints Received
2010/11
2011/12
Children, Young People and Families (CYPF)
230
122
Communities
322
251
Deputy Chief Executive’s
20
12
Place (exc. Street Force)
322
207
Resources (exc. Capita Revenues and Benefits)
156
100
Capita Revenues and Benefits
311
310
Total
1361
1002

While complaints generally fell by 20% between 2010/11 and 2011/12, complaints about Capita Revenue and Benefits remained high and made up 30% of all the complaints received by the Council.

Yet again I wonder if our Councillors actually bothered to do their own research, did they go and speak with Councillors in Sheffield about Capita's performance, did they look into the issues of whether KPIs artificially skew resource priorities. Given the importance of this contract, that the decisions they take could have a massive impact on the most vulnerable in our community and that cabinet members are rewarded handsomely for their role they should have done their due diligence. 

Do I think they have done it. NO!

BTW if Capita would care to comment on any of the points raised I would be more than happy to publish their response.