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Ex-BBC chief recalled to face Commons questions over earlier DMI evidence Ex-BBC chief recalled to face Commons questions over earlier DMI evidence
(4 months later)
Mark Thompson, the former BBC director general, has been recalled to parliament over evidence he gave two years ago about the "catastrophic" Digital Media Initiative (DMI), recently scrapped after wasting nearly £100m of licence-fee payers' money.Mark Thompson, the former BBC director general, has been recalled to parliament over evidence he gave two years ago about the "catastrophic" Digital Media Initiative (DMI), recently scrapped after wasting nearly £100m of licence-fee payers' money.
MPs on the Commons public accounts committee (PAC) on Monday accused Thompson and the BBC of giving assurance about the failed project that "just wasn't true".MPs on the Commons public accounts committee (PAC) on Monday accused Thompson and the BBC of giving assurance about the failed project that "just wasn't true".
Thompson, now the chief executive of New York Times Company, has been called back to Westminster to explain his testimony before the PAC in 2011 about DMI in a hearing scheduled for July.Thompson, now the chief executive of New York Times Company, has been called back to Westminster to explain his testimony before the PAC in 2011 about DMI in a hearing scheduled for July.
The BBC is facing a series of reviews into how the DMI project collapsed at a cost to licence-fee payers of £98.4m since 2010. The project, which was intended to transform the way the BBC works by doing away with video tapes and digitising vast amounts of archive footage was finally scrapped last month to "stop throwing good money after bad".The BBC is facing a series of reviews into how the DMI project collapsed at a cost to licence-fee payers of £98.4m since 2010. The project, which was intended to transform the way the BBC works by doing away with video tapes and digitising vast amounts of archive footage was finally scrapped last month to "stop throwing good money after bad".
In a statement late on Monday, Thompson insisted he gave testimony before MPs "honestly and in good faith". He added: "I did so on the basis of information provided to me at the time by the BBC executives responsible for delivering the project."In a statement late on Monday, Thompson insisted he gave testimony before MPs "honestly and in good faith". He added: "I did so on the basis of information provided to me at the time by the BBC executives responsible for delivering the project."
In the hearing before the Commons public spending watchdog in February 2011, chaired by Labour MP Margaret Hodge, Thompson told MPs that DMI was "out in the business" and that it was on track to be rolled out at BBC North and in Scotland.In the hearing before the Commons public spending watchdog in February 2011, chaired by Labour MP Margaret Hodge, Thompson told MPs that DMI was "out in the business" and that it was on track to be rolled out at BBC North and in Scotland.
He told the committee: "There are many programmes that are already being made with DMI, and some have gone to air and are going to air with DMI already working. It is true that some modules are slightly later in delivery than we initially planned, but other modules have been brought forward, though.He told the committee: "There are many programmes that are already being made with DMI, and some have gone to air and are going to air with DMI already working. It is true that some modules are slightly later in delivery than we initially planned, but other modules have been brought forward, though.
"Crucially, is it on track now to fully deliver over the course of this year for BBC North and Salford? Yes, it is. Are there going to be any significant further delays in benefit from the way we are delivering it? No, there won't be.""Crucially, is it on track now to fully deliver over the course of this year for BBC North and Salford? Yes, it is. Are there going to be any significant further delays in benefit from the way we are delivering it? No, there won't be."
He added that feedback from users of DMI had been "very positive" and added: "I think you are going to see a broader deployment of the system across the BBC than we expected, because of the enthusiasm with which it is being used."He added that feedback from users of DMI had been "very positive" and added: "I think you are going to see a broader deployment of the system across the BBC than we expected, because of the enthusiasm with which it is being used."
Thompson also told MPs that BBC managers had an "absolute policy of open book" and informing the BBC Trust about problems with DMI as they arise. "I cannot think of a single example of delaying or trying to put off the bad news," he said.Thompson also told MPs that BBC managers had an "absolute policy of open book" and informing the BBC Trust about problems with DMI as they arise. "I cannot think of a single example of delaying or trying to put off the bad news," he said.
On Monday, Hodge said: "The thing that really shook me is we were told there were bits of this system that were working, you were using and running programmes with them, and that wasn't true. That just wasn't true."On Monday, Hodge said: "The thing that really shook me is we were told there were bits of this system that were working, you were using and running programmes with them, and that wasn't true. That just wasn't true."
The Tory MP Stewart Jackson said he was embarrassed to read back a PAC press release from 2011 that praised the corporation's handling of DMI. He said it showed "the extent to which we were misled".The Tory MP Stewart Jackson said he was embarrassed to read back a PAC press release from 2011 that praised the corporation's handling of DMI. He said it showed "the extent to which we were misled".
The BBC Trust has asked accountants PricewaterhouseCoopers (PwC) to examine the fiasco and interview relevant executives. The National Audit Office (NAO) is conducting a separate inquiry and the PAC is also investigating what went wrong.The BBC Trust has asked accountants PricewaterhouseCoopers (PwC) to examine the fiasco and interview relevant executives. The National Audit Office (NAO) is conducting a separate inquiry and the PAC is also investigating what went wrong.
On Monday, BBC trustee Anthony Fry said MPs were right to feel "furious on behalf of licence-fee payers" and admitted it had been a "complete catastrophe". He said everyone thought DMI was going to work in 2011 "not least because of the comments made by Mr Thompson".On Monday, BBC trustee Anthony Fry said MPs were right to feel "furious on behalf of licence-fee payers" and admitted it had been a "complete catastrophe". He said everyone thought DMI was going to work in 2011 "not least because of the comments made by Mr Thompson".
Senior BBC executives in charge of the project two years ago – one of whom has been suspended on full pay – now face questions about briefings they gave superiors two years ago.Senior BBC executives in charge of the project two years ago – one of whom has been suspended on full pay – now face questions about briefings they gave superiors two years ago.
John Linwood, the BBC's chief technology officer, was suspended from his £280,000-a-year role on 24 May after the corporation pulled the plug on DMI. Linwood and Erik Huggers, the BBC's former director of future, media and technology who now works at Intel in the US, were in charge of DMI when it was brought in-house from Siemens in 2010.John Linwood, the BBC's chief technology officer, was suspended from his £280,000-a-year role on 24 May after the corporation pulled the plug on DMI. Linwood and Erik Huggers, the BBC's former director of future, media and technology who now works at Intel in the US, were in charge of DMI when it was brought in-house from Siemens in 2010.
Caroline Thomson, the ex-chief operating officer who left the BBC last year, also had oversight of the project. She has agreed to give evidence to the BBC review being carried out by PwC, Fry said.Caroline Thomson, the ex-chief operating officer who left the BBC last year, also had oversight of the project. She has agreed to give evidence to the BBC review being carried out by PwC, Fry said.
A BBC spokesman said: "The BBC takes seriously its responsibility to provide the NAO and public accounts committee with the most accurate information at all times. As has been made clear, the BBC will now be doing all it can to assist the independent review of the DMI project."A BBC spokesman said: "The BBC takes seriously its responsibility to provide the NAO and public accounts committee with the most accurate information at all times. As has been made clear, the BBC will now be doing all it can to assist the independent review of the DMI project."
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