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| News » Company and Commercial Law » Data loss company has government contract stripped away |
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11/09/2008
Data loss company has government contract stripped away |
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Ministers are facing pressure to cancel government contracts with the company who lost the memory stick containing details of 84,000 prisoners, the Telegraph reports.
Home Secretary Jacqui Smith cancelled PA Consulting's three-year contract, which was worth £1.5 million.
The six remaining contracts the company has with the Home Office are "under review", Ms Smith said.
Keith Vaz, chairman of the Home Affairs Select Committee, has said that due to the company's "procedural failures" it should not hold any contracts for government work.
Mr Vaz said: "I welcome the move to remove PA Consulting from their current research work on the project this loss relates to and call for consistency in this decision."
PA Consulting were also due to work on the controversial identity card scheme and their involvement in the project is now being questioned.
Matthew Elliott, chief executive of the TaxPayers' Alliance, said that the decision to strip PA Consulting of its contracts was "absolutely right". |
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