Ministers brace themselves for Wise inquiry
Scottish newspaper the Daily Herald is drumming up support for an inquiry into the DWP’s decision to exclude the Scottish social enterprise the Wise Group from delivering Work Programme contracts in Scotland. Private companies, Ingeus and London-based Working Links, were awarded the contracts to cover Scotland. The Wise Group looks set to lose £150 million and 200 jobs as a direct result of the DWP ruling.
Ingeus chief executive, Dean James, an ex-senior civil servant at the DWP was delighted at being awarded seven contracts across the UK, the maximum number available to a single prime contractor:
Ingeus is committed to successful delivery of this critical programme, to help transform people’s lives through lasting employment and to make a positive impact on society and the economy.”
However, the Herald alleges that the Wise Group’s application to tender for the contract scored the same number of points as one of their rivals from the private sector. The shadow Scottish Secretary, Ann McKechin MP, has raised concerns over the soundness of the DWP’s decision:
I am extremely concerned to note the radical reduction in the voluntary sector’s involvement in delivering the Government’s new Work Programme in Scotland, given how pivotal the voluntary sector was in delivering previously under the Future Jobs Fund. The voluntary sector understands how to get those who have been unemployed for a long period or need additional support to get back into work.”
The DWP had decreed that at least 30% of any Work Programme contract should be delivered by the voluntary sector, however, successful bidders have recently stated that only 8% and 6% of their contracts will be delivered by their third sector subcontractors. This has led to former Labour MSP Des McNulty, who sits on the Wise Group board of Directors, to question the legality of the DWP’s decision. Writing in the Herald, Mr McNulty said:
“It surely cannot be legal to award a contract to an organisation that doesn’t meet the published tender.
“It is absolutely clear the scoring system was biased against bidders, like the Wise Group, who had a high voluntary sector provision in their bids as required by the tender document. It is also clear that discussions took place with some bidders but not all bidders during the week that scores were being finalised prior to the formal announcement of the outcome of the tendering process. I believe the inconsistencies are sufficiently serious to require a rerun of the tender submissions in Scotland.”
Chris Grayling MP, Minister for Employment, and Michael Moore MP, the Scottish Secretary will have to brace themselves for more questioning by the UK’s auditors. Former SNP MSP, Christina McKelvie, has written to both Audit Scotland and the National Audit Office about the apparent discrepancy in the tendering process. Ms McKelvie said:
“The DWP rules were absolutely clear – at least 30% of each contract was to be delivered by the voluntary sector. But in Scotland, the two private firms who have been awarded the contracts between them plan to give a grand total of 13% of the work to the voluntary sector.
“That’s not just an insult to a Scottish voluntary sector which has shown itself to be very successful at helping people into work, it’s a straightforward breach of the DWP’s own criteria for awarding the contracts.
“The handling of this contract by the DWP is unacceptable.”
As the pressure mounts, the DWP has remained unfazed, with a spokeswoman from the DWP stating last week:
“We are working with the Wise Group to see where they could be involved.”
Kuki Taylor
Research and Communications Officer
Website: Herald Scotland,
Source:
Published on 13th April 2011
