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Ex-BBC chief and others may be quizzed over £100m DMI debacle Ex-BBC chief and others may be quizzed over £100m DMI debacle
(4 months later)
The former BBC director general, Mark Thompson, and other executives may be questioned as part of a comprehensive review into the failure of the corporation's Digital Media Initiative (DMI), at a cost of nearly £100m to licence fee payers.The former BBC director general, Mark Thompson, and other executives may be questioned as part of a comprehensive review into the failure of the corporation's Digital Media Initiative (DMI), at a cost of nearly £100m to licence fee payers.
Accountancy firm PricewaterhouseCoopers (PwC) has been asked by the BBC Trust to examine the corporation's handling of the DMI project, which was was finally axed last month.Accountancy firm PricewaterhouseCoopers (PwC) has been asked by the BBC Trust to examine the corporation's handling of the DMI project, which was was finally axed last month.
The review, which will go back to 2011, has the power to seek answers from any BBC executive involved in oversight of DMI. Caroline Thomson, the BBC's former chief operating officer who left in September 2012, has agreed to provide evidence to the PwC review.The review, which will go back to 2011, has the power to seek answers from any BBC executive involved in oversight of DMI. Caroline Thomson, the BBC's former chief operating officer who left in September 2012, has agreed to provide evidence to the PwC review.
Three separate inquiries have now been launched into the failure of DMI, which was meant to transform the way the BBC works by digitising vast amounts of archive footage and doing away with video tapes. It was axed last month to "stop throwing good money after bad" after costing licence fee payers £98.4m.Three separate inquiries have now been launched into the failure of DMI, which was meant to transform the way the BBC works by digitising vast amounts of archive footage and doing away with video tapes. It was axed last month to "stop throwing good money after bad" after costing licence fee payers £98.4m.
The BBC Trust on Thursday set out the scope of the PwC review and said: "DMI has failed to deliver what was expected and will be closed before it is completed.The BBC Trust on Thursday set out the scope of the PwC review and said: "DMI has failed to deliver what was expected and will be closed before it is completed.
"As a result, the BBC will need to write down its DMI assets to reflect this position in this year's financial statements.""As a result, the BBC will need to write down its DMI assets to reflect this position in this year's financial statements."
The review will examine the oversight of the project and whether its financial management arrangements were fit for purpose, the trust said. It will also question whether corporation executives and the BBC Trust were appropriately informed about the risks and costs associated with DMI.The review will examine the oversight of the project and whether its financial management arrangements were fit for purpose, the trust said. It will also question whether corporation executives and the BBC Trust were appropriately informed about the risks and costs associated with DMI.
Executives are likely to be pressed on whether they were aware of concerns raised by an internal whistleblower in 2010 and again in 2012 about the projected cost benefits of the project.Executives are likely to be pressed on whether they were aware of concerns raised by an internal whistleblower in 2010 and again in 2012 about the projected cost benefits of the project.
The BBC Trust said the report is likely to be completed and published in September. It said it was too early to give an estimate on the cost of the PwC review.The BBC Trust said the report is likely to be completed and published in September. It said it was too early to give an estimate on the cost of the PwC review.
On Monday, the BBC trustee Anthony Fry admitted that the project had been an "absolute catastrophe". He told MPs on the Commons public accounts committee (PAC): "It is extraordinarily worrying. At a personal level it is probably the most serious, embarrassing thing I have ever seen."On Monday, the BBC trustee Anthony Fry admitted that the project had been an "absolute catastrophe". He told MPs on the Commons public accounts committee (PAC): "It is extraordinarily worrying. At a personal level it is probably the most serious, embarrassing thing I have ever seen."
MPs on the PAC, which is parliament's public spending watchdog, accused the BBC of misleading them when former director general Thompson gave evidence about DMI in 2011.MPs on the PAC, which is parliament's public spending watchdog, accused the BBC of misleading them when former director general Thompson gave evidence about DMI in 2011.
Thompson, now chief executive of the New York Times Company, has been recalled to parliament next month to explain why he told MPs two years ago that DMI was "out in the business" and that there were "many programmes being made with DMI".Thompson, now chief executive of the New York Times Company, has been recalled to parliament next month to explain why he told MPs two years ago that DMI was "out in the business" and that there were "many programmes being made with DMI".
Margaret Hodge, the chair of the PAC, said on Monday: "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."Margaret Hodge, the chair of the PAC, said on Monday: "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."
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