March 18, 2008

Education mistake costs £3.4 million

A London council and an education provider are locked in an argument over who will have to pick up the bill for an error that could cost around £3.4 million. The London borough of Waltham Forest switch the education services to the boroughs schools from one provider to another, this means that a hundred council staff will move also, nothing wrong in that.

But somehow a blunder has now been found, the error is, that twenty one of the most senior staff were not included into the deal and as this is a four year contract, there is a £3.4 million shortfall, leaving someone having to pay it.

At the moment both sides are blaming each other for the error, which will mean that this is going to drag on for some time or until the results of an investigation ordered by the council to look into how this could have happened in the first place. Both sides claim to have accounted for the amount of staff to be covered by the new contracts. Whatever the results somebody is going to have to pay in the end.

Source [Guardian]