Companies involved in private finance initiative projects may face calls for a taxpayers' 'clawback' when they make...
Companies involved in private finance initiative projects may face calls for a taxpayers' 'clawback' when they make big profits from deals, reports The Financial Times (p2).
David Davis, chairman of the commons public accounts committee, said contracts should be drawn more tightly in future. 'Refinancing gains should be thought about from the outset,' he said.
The National Audit Office warned that 'substantial refinancing gains to the private sector may threaten the perceived value for money' of PFI projects.
Jeremy Colman, the NAO's head of PFI, said: 'If someone makes a killing, people are bound to say that the original deal must have been poor value for money, whether that is fair or not.'
The comments follow news that Group 4, the security company, and Carillion, the construction group, had almost doubled the profit they expected to make by refinancing a prison contract.
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