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GOVERNMENT NEWS: HMRC admits breaching contract tendering rules. By Dan Martin

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31st Jul 2006
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HM Revenue & Customs (HMRC) has admitted going against government procurement rules by awarding contracts worth £4m without putting them out to tender.

Information released to 'The Sunday Telegraph' under the Freedom of Information Act showed the department has "uncovered issues with the procurement of consultancy services".

The revelations follow the release of a National Audit Office (NAO) report earlier this month which made similar criticisms.

It referred to "non-adherence to public procurement rules" with regard to use of consultants. Although the NAO did not mention specific contracts, the documents seen by 'The Sunday Telegraph' showed Corven Consulting received work worth more than £120,000 in June 2004 without going through the proper competitive tendering process.

The company has since been awarded HMRC contracts worth £2.8m including the provision of general support and advice to Sir David Varney, who announced his resignation as HMRC chairman the day after the NAO report was published.

Crispin Ellison, a director of Corven responsible for the revenue contract, told the newpaper: "I have no idea why we were chosen for the contract. We tend to focus on large scale transformations in the public and private sector."

An HMRC spokeswoman added: "Our own internal checks highlighted some issues in connection with the procurement of consultancy services. These issues have now been addressed."

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