Unite calls for investigation into Capita defence contract

The urgent question followed reports in the Financial Times that Capita had been awarded the multi-million 12 year contract by the Ministry of Defence despite a financial health assessment attaching the highest possible risk rating to the outsourcing company.

Capita scored 10 out of 10 for risk in a document prepared for the MoD. One indicates the lowest probability of distress and 10 the highest. As part of the risk assessment Capita was also awarded a ‘health score’ of just three out of 100. A score of 25 or less is deemed to be in a red ‘warning area’ of heightened vulnerability.

Jim Kennedy, Unite's national officer said: “The complacency displayed by government ministers is simply staggering. There needs to be an investigation into how Capita can be awarded such a sensitive and important contract despite being graded the highest financial risk possible in the government’s own assessment.

“The award of this contact risks our defence and points to a government that is willing carry on with the outsourcing racket at all costs. Ministers need to learn the lessons of the Carillion collapse and call time on the outsourcing gravy train that puts our public services at risk.”

Capita beat Serco to be awarded the contract. Capita has been forced to borrow over £700 million after racking up losses of £513 million last year.

MoD firefighters and defence workers are employed in both civilian and military roles and are responsible for ensuring the safety of military bases both in the UK and abroad. There are between 1,500–2,000 workers affected by this decision. The workers also have to protect military equipment in war zones.