The defence spending watchdog has told MPs that its investigation is only being allowed to scrutinise a small fraction of the £9Bn spent by the MOD on single source procurements.
Marcine Waterman, Chief Executive, of the Single Source Regulations Office (SSRO) an independent regulator set up to ensure the tax payer gets value for money through greater transparency from Defence contracts agreed without open competition, was speaking to the Defence Committee in its third oral evidence session for the inquiry into Defence Acquisition and Procurement.
Ms Waterman told MPs that the SSRO was only being allowed to look at around 20% of the £9Bn spent by the Ministry of Defence on single source procurements.
She said that without full access, it was difficult to gain full transparency. Ms Waterman told the Defence Committee hearing: “Last year we saw between 15pc and 20pc of the total MoD non-competitive spend.
“It feels as if we have a very small proportion of what they are doing. We don’t get the contracts, so we don’t know if what we are being told is the truth.”
Single source procurement deals are a result of security or due to urgent defence requirements.
The SSRO has made several hundred requests to the MOD for further information on contracts of this nature but has only received a response on a small number of these.
However, the SSRO does not have the regulatory power to legally demand information and is managed by the Ministry of Defence.
The Defence Minister also has the power to veto any contract from SSRO investigation, which Ms Waterman said is susceptible to pressure coming from the defence industry.
She told MPs: “This is a very strong industry, and we have seen instances where a foreign company simply refuses to be regulated, and therefore the Secretary of State exempted.”
Ms Waterman said that the SSRO needed further powers to allow it to fulfil its role in ensuring tax payers get the most from their money.
She said: “It seems to us that the MoD is conflicted, being the specifier, the buyer and the user of the services that we regulate, but they hold the only tool by which to enforce compliance. It would actually help them if that power was transferred to us.”
The MOD refuted Ms Waterman’s remarks. A spokesman said: “The MoD is fully committed to implementing the single source contract regulations and working with the SSRO to achieve this. This is precisely why the MoD created the Single Source Regulations. We do not recognise the description of such contract exemptions.”
image (c) Martin Hoscik / Shutterstock.com
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Marcine Waterman Ministry of Defence Single Source Regulations Office SSRO
Post written by: Matt Brown
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