Thursday, 12 February 2009

BT Reports Fall in Profits - Again

Judging by the number of times BT has issued a profits warning it is more and more obvious that they did not and still do not know what's been going in their Global Services Division which is now declared to lose over £500mln. What a shocker! But perhaps not. It was widely known last Summer that BTGS was in trouble and that too many under priced contracts had been signed. In essence BT management acted just like the bankers who have been heavily criticised of late for dodgy deals and not being sufficiently contrite.
Questions to Mr Livingston, the boss at BT;
Why has it taken so long to understand the depth of the problem?
How long will the earnings hits continue?
What is being done to recover bonus payments made to those who over egged the earnings forecasts and signed up for the bad contracts?

Questions for The Secretary of State for Health, Alan Johnson;
If BT GS have over sold to their management the costs of IT for NHS what are the true costs going to be to the UK tax payer?
Will NHS IT have to renegotiate the contracts to ensure the losses sustained by suppliers like BT GS are not passed on?
In the light of continuing failure of suppliers to NPfIT will NHS IT be reviewing the capability of its chosen suppliers to continue to deliver before they fail or pull out?
As all public service contracts are subject to specific rules about offering accurate prices and not under bidding (which BT-GS seems to have done) have these rules been broken by BT?

Questions for the boss of Ofcom;
If BT GS obtained these contracts by under pricing their bids do their opponents in the bids have a case for malpractice?
As BT is legally obliged to bid for contracts within certain price parameters and seem to have ignored them to win business has BT broken Ofcom's own rules?

Question for the Prime Minister;
Is Mr Livingston still on the short list of knighthoods yet to be awarded?

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