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Serco UK suppliers face charge in new procurement system09 Nov 2010Source: The Telegraph International support services supply company, Serco is shifting 4,500 of its smaller UK suppliers on to a new procurement system that has seen some pay £500 to be able to get government contracts. The suppliers have until November 19 to sign up to the system, run by supplier management company Achilles. The change in Serco's procurement policy follows the group's dramatic decision last week to apologise to its 193 main suppliers for demanding a 2.5pc cash rebate to help it meet Government efficiency targets. The about-turn came 24 hours after The Sunday Telegraph revealed that Serco's finance director, Andrew Jenner, had issued the cash demand and that Francis Maude, the Cabinet Office minister leading the Government's negotiations with its main suppliers, was furious with the decision. It can now be revealed that Serco's main suppliers took the letter seriously and that two paid the rebate demanded on work carried out for Serco in the first half of the year – a period that is not covered by the coalition Government's £800m 2010 savings plans. Serco, which runs prisons, schools and military, nuclear and scientific facilities for the Government, paid the two suppliers back in full last week. Read more here |
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