Government defence shambles costs taxpayer £224m
A LEGAL ruling that the Government must pay nearly £224million to a US defence firm for terminating a border control contract sparked outrage yesterday.
The payment to Raytheon Systems Limited includes £50million damages and £38million in interest.
A tribunal ruled that processes used by the now-defunct UK Border Agency to scrap a deal to supply the eBorders system were flawed.
The system allows travellers’ details to be checked on a database.
Taxpayers will be furious. Yet another Government project has spiralled out of control
Jonathan Isaby, of the TaxPayers’ Alliance, said: “Taxpayers will be furious. Yet another Government project has spiralled out of control.”
Labour MP Keith Vaz asked why the Agency adopted a “bad deal”.
But Home Secretary Theresa May said the plan, inherited from Labour, faced delays and cancellation was the cheapest option. She said the tribunal ruling might be challenged.