http://business.guardian.co.uk/story/0,,1871050,00.html
The government has admitted making two upfront payments, totalling £82m, to iSoft, the financially stretched software group playing a central role in the NHS's £6.2bn overhaul of computer systems in hospitals and GP practices across England.
The health secretary, Patricia Hewitt, said payments of £58m and £23.8m were made to iSoft in 2005 and this year respectively. On each occasion, transfers were made just days before the company's financial year came to a close on April 30.
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ISoft's Lorenzo software, being developed in Madras in India, is earmarked to be deployed in 60% of hospitals and GP practices across England. Last month, the Guardian revealed the two consultancies due to deploy Lorenzo had written a highly critical report on its progress. The report by Accenture and CSC said iSoft had "no believable plan for releases".
Ms Hewitt said: "The [iSoft upfront payments] arrangement is not part of the National Programme for IT". The government has repeatedly stressed that suppliers to the programme would not receive any upfront payments and would be paid only for services delivered.
Delays in delivering National Programme software, including delays to iSoft's Lorenzo, have left the NHS reliant on its existing computer systems, many of which run on antiquated iSoft software. It is contract extensions to this legacy software that led to the upfront payments.
In August, the Guardian revealed that the Financial Services Authority was investigating iSoft after the company said its auditor Deloitte had found "accounting irregularities" for 2004 and 2005. These related to revenues recognised in the accounts "earlier than they should have been".
Ms Hewitt said: "There has been no indication from iSoft that the advance payments made by the Department of Health are the subject of the suspected accounting irregularities."
Good old New Labour. Competent, upfront, straight and reliable.
The government has admitted making two upfront payments, totalling £82m, to iSoft, the financially stretched software group playing a central role in the NHS's £6.2bn overhaul of computer systems in hospitals and GP practices across England.
The health secretary, Patricia Hewitt, said payments of £58m and £23.8m were made to iSoft in 2005 and this year respectively. On each occasion, transfers were made just days before the company's financial year came to a close on April 30.
......................
ISoft's Lorenzo software, being developed in Madras in India, is earmarked to be deployed in 60% of hospitals and GP practices across England. Last month, the Guardian revealed the two consultancies due to deploy Lorenzo had written a highly critical report on its progress. The report by Accenture and CSC said iSoft had "no believable plan for releases".
Ms Hewitt said: "The [iSoft upfront payments] arrangement is not part of the National Programme for IT". The government has repeatedly stressed that suppliers to the programme would not receive any upfront payments and would be paid only for services delivered.
Delays in delivering National Programme software, including delays to iSoft's Lorenzo, have left the NHS reliant on its existing computer systems, many of which run on antiquated iSoft software. It is contract extensions to this legacy software that led to the upfront payments.
In August, the Guardian revealed that the Financial Services Authority was investigating iSoft after the company said its auditor Deloitte had found "accounting irregularities" for 2004 and 2005. These related to revenues recognised in the accounts "earlier than they should have been".
Ms Hewitt said: "There has been no indication from iSoft that the advance payments made by the Department of Health are the subject of the suspected accounting irregularities."
Good old New Labour. Competent, upfront, straight and reliable.
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