Poor US purchasing report 'tip of iceberg'

A damning audit of state procurement in Pennsylvania in the US "only scratches the surface", the Service Employees International Union has said.

Welcoming last month's review by the Department of the Auditor General (DAG), the union said it was "the tip of the iceberg" of waste in Pennsylvania state purchasing procedures.

The union, which represents 2.1 million healthcare, public and property services workers in North America, was referring to the DAG's special performance audit, Procurement of Deloitte Contracts. This found the cost of IT service deals awarded to the consultancy in January 2004 increased 55 per cent to $592 million (£360 million) by December 2007, as a result of changed orders, "emergency contracts" and lack of competitive tendering.

Auditor general Jack Wagner also uncovered "shoddy monitoring and record-keeping" and said problems indicated "potential flaws" in Pennsylvania's contracting processes.

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