U.K. Defense Ministry criticised by Auditor for procurement failures

 
The U.K. Ministry of Defense was criticized for its procurement failures under the last government before an announcement by Prime Minister David Cameron next week about which military programs will be axed.
The National Audit Office said in a report published in London today that decisions by the ministry to try to balance the defense budget reduced its cash-flow requirements in the short term, while leading to greater long-term costs.

The ministry’s failure to make “realistic budgetary provision” for all likely outcomes and the slowing of projects led to costs rising 3.3 billion pounds ($5.3 billion) in 2009-10 for the 15 largest equipment procurement programs, the NAO said.

“Central departmental decisions were taken to balance the defense budget, which had the effect of driving very significant additional cost and delay into the equipment program,” Amyas Morse, the head of the NAO, said in an e-mailed statement. “This represents poor value for money for the taxpayer.”

Cameron will tell lawmakers on Oct. 19 how his administration plans to redefine military needs. The announcement will take into account a 38 billion-pound funding gap in the arms-procurement budget, spiraling costs and the government’s overall 156 billion pound budget deficit.

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