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Serco given carte blanche to run defence services
13 March 2012
The contract to run the MoD's defence business services - personnel, pay, finance, security vetting and accounting - will give Serco carte blanche to further outsource vital military support work, even including to itself.
The union says Serco will also have access to confidential commercial information regarding other MoD contracts, allowing it to see bids made by competitors.
Since the tender process began in early 2011, the union has been asking MoD senior managers for assurances about governance arrangements in the contract. But one year on, it appears the contract will be signed without these being given.
PCS general secretary Mark Serwotka said: "This puts Serco in the prime position for any future work the MoD intends to privatise, raising the prospect of a monopoly over defence services.
"The civil servants currently running these services have met every target set, but again it appears the government has made an ideological decision to privatise. This is particularly worrying in a department where the bottom line can mean life and death, not numbers on a balance sheet."
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