PFI Profits

The vast profits being made by contractors and banks selling equity in PFI project companies was exposed by the BBC File on 4 programme on 13 June. The programme was based on The £10bn Sale of Shares in PPP Companies: New source of profits for builders and banks, and earlier evidence in Global Auction of Public Assets by Dexter Whitfield. BBC Podcast: PFI Profits File on 4, 14 June 2011 – 38 mins  BBC Press Release: HM Treasury ‘in dark’ over ‘excessive’ PFI profits

Financial Times, 20 June 2011: PFI projects switched to tax havens, report claims

Daily Mail, 15 June 2011: £2bn secret profits on PFI gravy train: Public-sector projects are massive money spinner

Daily Telegraph, 15 June 2011: £2bn profit for companies selling debt on public projects

Tax Justice Network, 15 June 2011: BBC explains tax scam in UK’s Private Finance Initiative

Left Foot Forward, 15 June 2011: Democratic erosion, profiteering and tax havens: PFI equity sales exposed by Dexter Whitfield.

Open Democracy, 22 June 2011: PFI transferring billions from UK taxpayers to private financiers

Is Commissioning the Way Forward?

An article in Local Government Chronicle, 9 June 2011, by Dexter Whitfield, describes commissioning as a wolf in sheep’s clothing because it will lead to private monopoly, commercialised services, agendas dominated by the vested interests of private contractors and little transparency. Sets out an alternative approach.