HMRC accused of contract rule breaking

News Article - 01 August 2006
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HM Revenue and Customs (HMRC) is being faced with accusations that it broke official rules in the way it awarded some of its contracts.

The Sunday Telegraph says the newly formed organisation failed to comply with government rules designed to encourage competition when handing out contracts worth a total of £4 million.

The newspaper reportedly obtained the information using the Freedom of Information Act.

It then discovered that the HMRC had awarded the contracts without first putting them out to tender.

The new accusations follow soon after the department was criticised by the National Audit Office (NAO) for paying large incentives to suppliers of software.

The NAO's report had suggested that there were issues related to "non-adherence to public procurement rules", although the HMRC has insisted that the matter has now been dealt with.

A spokeswoman for the HMRC told the Sunday Telegraph: "Our own internal checks highlighted some issues in connection with the procurement of consultancy services. These issues have now been addressed."

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