Posts Tagged ‘Deloitte’

Get the Big Accountancy Firms Out of My Government

September 2, 2020

Mike yesterday put up a piece reporting and commenting on the news that the Tories have squandered £100 million on the usual ratbag assortment of management consultants and big accountancy firms. You know – the usual offenders – PwC, Deloitte and McKinsey since March. This is work that should properly be done by the civil service. They were trained and required to adhere to high standards of impartiality. Unfortunately, too many of them didn’t. I heard much of Thatcher’s and Major’s privatisations, especially of British rail, was strongly supported by one particular senior servants. But the ideal of genuine public service was there. It was why the Sidney and Beatrice Webb, civil servants themselves, had such respect for their profession that their socialist views were strongly bureaucratic. They honestly believed that enlightened servants, guided by an involved public kept informed by honest reporting and the public of official statistics, would make a better job of running the country than the current political class.

The management consultants don’t. They’re in there for their own private profit, and they’ve made one stupid, incompetent decision after another. Mike’s article mentions several which were so bad they had to be reversed almost immediately. But they still keep getting contracts.

This is another piece of corporatist corruption that began with Thatcher and Major. I remember how they’ve royally screwed up the civil service. This started with the former Anderson Consulting, who were called in to reform the Department for Health and Social Security, turning it into the Benefits Agency as a form of half-way house to privatisation. They then went on to do something similar to the Inland Revenue. All this could have changed with the election of Blair. He had the popular mandate. But after the Tories rejected one of Anderson Consulting’s little schemes, Blair fished it out of the dustbin and made it his official policy.

Mike argues that Johnson has called them in because he can’t think for himself. That’s part of it, but not all of it. There’s a piece by Tony Benn in the book ‘The Best of Benn’ where the great socialist criticises the way industry uses management consultants to make conditions in firms worse and start laying off their workers. He states that, in practice, the firms have already decided on this course of action. They’ve called in the management consultants to present their decision as the result of object research into present working conditions. I think much the same is going on here. The Tories and New Labour stand for privatisation. And this is what they’re given by the management consultants and accountancy firms. Plus, I think some of the politicians may well have staff recruited from them and in return are expecting positions on their boards after their political career ends. It’s the constantly swinging open door between politicians, senior civil servants and industry. And its corrupt.

I’ve come to despise the big accountancy firms and look on them the same way the Sirius Cybernetics Corporation are described in Douglas Adams’ The Hitch-Hiker’s Guide to the Galaxy. This is a fictional robotics company that is so incompetent, its complaints division now covers the major landmasses of three planets in its home system. They are so bad that the Guide itself describes them as ‘A bunch of mindless jerks who will be first up against the wall when the revolution comes’.

Well, I wouldn’t go that far. But I do want them out of politics and out of government. I’ve started to wish there were demonstrations against them, and the other big businesses that have wormed their way into politics through the sponsorship of the political parties, in return for which they’ve been given positions in government. I wish people were marching against PwC, Deloitte, McKinsey and the rest, parading caricatures of their chief executives and burning them in effigy. Because I think this corporatist corruption will only stop if we show that we aren’t tolerating their interference, for their own profit, in our public affairs.

Johnson’s government has spent £100 million on consultants because he can’t think for himself

Private Eye on the Problems of the Government’s Medical Central Purchasing Company

May 7, 2020

Mike’s article about the government’s privatisation and centralisation of the purchasing of PPE and other essential medical equipment for combating the Coronavirus follows a report in last fortnight’s Private Eye for 21st April – 7th May 2020 about the problems besetting the state-owned company the Tories had set up to do this. Centralising the purchase of PPE was supposed to lead to massive NHS savings. However, according to the Eye it has led instead only to its chiefs awarding themselves massive salaries, and staff shortages and poor pay at the bottom. The article on page 10, ‘SKIMPING OUTFITS’ runs

The government-owned company struggling to supply masks, gloves, aprons and eye protection to hospitals and GPS was set up explicitly to reduce spending on NHS supplies.

Supply Chain Coordination LTD (SCCL) has been in charge of procuring NHS supplies and the warehouses and lorries getting PPE out to the NHS since April 2018. The government argued that one centralised buying system would “generate savings of £2.4bn over a five-year period” through “efficiency”. In fact it has led to big salaries at the top and lower pay and staff shortages at the bottom.

SCCL was set up as a government-owned company in response to the Carter review of NHS productivity. Lord (Patrick) Carter argued that too many NHS trusts buying their own kit was inefficient and the government could “rationalise the procurement landscape, reduce spend and consolidate purchasing power”. Jin Sahota was brought in as SCCL chief executive from French media firm Technicolor on £230,000 a year, after the government allowed higher salaries for “commercial staff”. I’ll be absolutely blunt”, he told Civil Service World last year, “If the salary levels were somewhat different, maybe it wouldn’t have attracted me.”

In May 2019, Rob Houghton, former Post Office chief information officer, was made SCCL’s “IT focused” director. As the last Eye’s special report on the Post Office’s Horizon IT scandal noted, in 2016 Houghton launched a review into the malfunctioning system, which was mysteriously abandoned. The courts later found that a matter of “great concern”.

SCCL manages procurement of NHS bulk supplies and contracts distribution of NHS essentials through a five-year, £730m deal signed in 2018 with UK logistics firm Unipart, which runs the NHS warehouses and lorry deliveries. In September 2018, Steve Barclay (then a health minister, now at the Treasury) said the SCCL/ Unipart deal was “streamlining” the NHS.

Meanwhile, £500m is being taken from NHS trusts to fund the new system and “incentivise” trusts to use it. However, any “savings” delivered look more like penny-pinching than efficiency: in December, HGV and 7.5 tonne drivers on the SCCL/ Unipart contract had to threaten strike action to get decent sick pay and push their rate above an industry low of £10.24 an hour.

At the start of April, union Unite said warehouse staff were exhausted and struggling to keep up with demand. In a cuts-driven system, there was no slack to deal with the extra burden of a pandemic. The government’s solution was to send in the army to help in the warehouses. This has provided some relief – but once the immediate crisis passes, will it return to its ill-conceived “savings” plan?

It looks like Boris’ decision to privatise the purchasing process is a result of this company’s embarrassing failure. But Deloitte and co. aren’t going to fare much better, if at all. What’s at fault is the whole notion of centralisation itself. This was used to destroy local DHSS and inland revenue offices in the 1980s and 1990s, all in the name of efficiency. I don’t believe it made the process any more efficient. In fact, given the delays benefit claimants experienced in the processing of their claims, even before IDS’ stupid and murderously destructive Universal Credit was rolled out, it made it much, much worse.

It also won’t solve the problem of a poorly paid, overworked and demoralised staff working flat out for a grossly overpaid senior management. This is now general throughout business and what used to be the civil service. It’s how the outsourcing companies were able to generate their profits in the first place – they laid off staff in order to give their shareholders nice fat dividends and senior management nice fat salaries and bonuses.

What is causing the problems is the Tories’ decimation of the NHS across its services. As Mike and others have reported, other countries like Germany were able to respond more effectively to the pandemic because they had spare capacity in beds. But the Tories had removed that in the NHS in the name of efficiency.

It’s time these false economies were wound up. Purchasing should be handed back to NHS trusts, and the NHS and the rest of the civil service properly funded.

And the Tories and their obsession with centralisation, rationalisation, privatisation and rewarding overpaid, greedy managers and board chairmen thrown out of government.

Outrageous! Government Uses Pandemic to Privatise Even More of the NHS

May 7, 2020

So much for the real respect the Tories have for the NHS! Yesterday Mike put up a piece based on a report in the Guardian about the government pushing through the privatisation of even more NHS services through emergency powers designed to deal with the pandemic.

These powers have allowed the Tories to circumvent the usual tendering processes and award contracts to private healthcare companies and management consultants without the usual competition. The Groan reported that doctors, academics, MPs and campaign groups raised their concerns about this after it emerged on Monday that the outsourcing company, Serco, was in the lead to get the contract to supply 15,000 call handlers for the government’s track and trace operation.

And where Serco goes, the other outsourcing companies aren’t far behind. Deloitte, KPMG, Sodexo, Boots, Mitie, as well as Serco and the American data-mining group Palantir have also been given government contracts to run the Coronavirus drive-in testing centres, purchase PPE equipment and build nightingale hospitals.

They’ve also decided to centralise part of the purchasing process and hand it to yet another private company. The Groan stated that it had seen a letter from the Department of Health instructing local hospitals not to buy their own PPE and ventilators. Instead, purchasing of a list of 16 items, including were to be handled centrally. The items include PPE, but also general, high-value equipment such as CT and ultrasound scanners and mobile X-ray machines.

The Groan considered that this would hand more power to Deloitte, as not only was the accountancy and management consultants responsible for coordinating Covid-19 test centres and logistics at three new ‘lighthouse’ laboratories, they were also given a contract three weeks ago to advise the government on PPE purchases. As the provision of PPE has been absolutely deplorable, with equipment needed her exported abroad, insufficient supplies coming late from Turkey and other faults, so that doctors and nurses have been forced to use masks and gowns made by the public, and even bin-bags, Deloitte should be sacked and fined for their massive incompetence.

Mike makes the point that at the time PPE should be available to as many people as possible, the government is actually making it more expensive. He states that if Jeremy Corbyn had won the election, these items would be free. He also makes the point that it is alleged that Corbyn was prevented from doing so because of sabotage from the right-wingers in his own party. A genuinely free, publicly funded and nationalised NHS was one of the things the intriguers didn’t want. Presented with the evidence of this plotting and sabotage, one Labour MP remarked that it explained why he experienced so much resistance to his attempts to have it accepted as Labour policy that NHS services should be taken back in house. Alan Milburn, Tony Blair’s health secretary, wanted the NHS fully privatised so that it would become simply a logo for services provided by private healthcare companies for the state.

This shabby policy also shows how desperate the Tories are to give rewards to their own donors. a few weeks ago Zelo Street posted up a piece about how one company, which was set to supply ventilators for the government were told that this was off. Instead, the order went out to Dyson, who’s donated something like £10 million to the Tory coffers. This does not seem to be a coincidence.

I also came across a report somewhere that said that the big accountancy firms, Deloitte, KPMG, whatever Anderson Consulting is now, were in trouble. Most of their money comes from consultancy work, but this has dried up since the lockdown. Good! I’m still angry with these parasites for the way they trashed the inland revenue and DHSS for the Tories in the 1980s and ’90s. I don’t think any of them should be given any kind of government contract whatsoever.

It is thanks to the NHS and not a private healthcare system like America’s that the death toll from Boris’ idleness and incompetence isn’t massively higher. It’s a savage indictment of ten years of Tory privatisation and underfunding as it is. This is another example of how much the Tories ‘treasure’ the NHS. They will treasure it right up to the time they sell the last piece of it off.

See: https://voxpoliticalonline.com/2020/05/06/tories-are-accelerating-destruction-of-the-nhs-just-when-we-really-need-it/