Scandal of 'cut-price' defence sale deepens (Carlyle Grp)

[NVMojo]

June 25, 2006

MINISTERS who agreed the cut-price sale of the government's defence laboratories had to hand almost half of the paltry fee they received to lawyers, bankers and accountants.

The scandal over the sale of a stake in QinetiQ to an American-owned company has been re-ignited after it emerged that the government paid almost £20m in fees to the external experts who helped drive the deal through.

The sale of the stake in the former government defence laboratories to Carlyle Group for only £42m has been bitterly condemned after a subsequent stockmarket flotation saw the value of its shares rise beyond £400m. The public-spending watchdog, the National Audit Office, has since launched an inquiry, after furious complaints from opposition MPs.

But Scotland on Sunday can now reveal that the taxpayer did not even receive all of the £42m paid by Carlyle - as the MoD had to give £19.35m to lawyers, bankers, accountants and other consultants who advised them on the sale. Some £4.5m of the huge bill was paid when the sale was completed, as a "success fee" for the army of advisers.

more...

http://news.scotsman.com/politics.cfm?id=927342006

[Robbien]

1. I don't suppose there is anything they can do about it

other than sanction the Ministers involved. Hopefully it will teach other ministers to stay far away from Carlyle.

[NVMojo]

2. and stay away from the neocon corporations!!!

Always at the public trough!

[The Doctor.]

3. Did I hear the name 'Interpol'?

Whose jurisdiction is this?

[w4rma]

4. LOL! They got ripped off. (nt)

[NVMojo]

5. And they are surprised!