So after all the fuss about Virgin Trains losing the contract for the UK West Coast Mainline for cheaper rival First Group, it now seems the deal has been scrapped as the Dept of Transport admits they have dropped a clanger and not done their sums properly.
"Transport Secretary Patrick McLoughlin said it was "deeply regrettable" that mistakes had been made by staff within the Department for Transport. Several staff have been suspended.
The estimated cost of reimbursing the companies for the cost of their bids will be
Just goes to show just how much power Branson has then, considering that he threw a wobbly when the contract winner was announced. Not sure how Virgin knew they were offering a better deal if the contract was done under a closed bid. I would imagine First Group will be quids in (tax payers money) either way now, either by compensation or by keeping the contract... Will anyone resign or be sacked for this balls up? Doubt it as the blame will probably be put on some low ranking office clerk... Thanks, Barney
Well nearly 2 years on after the contract farce and Virgin have had the West Coast contract extended until the Spring of 2017. According to the Beeb, 3 civil servants were suspended over the collapse of the original deal, so by that I assume they are back working again
Shakester |
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