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Sellafield bosses forced to say sorry over £70bn-plus cleanup costs Sellafield bosses forced to say sorry over £70bn-plus cleanup costs
(1 day later)
The chairman of the American-led consortium that runs Britain's largest nuclear complex at Sellafield was forced into a humiliating apology on Wednesday after admitting a raft of cost overruns, performance failures and an expenses scandal.The chairman of the American-led consortium that runs Britain's largest nuclear complex at Sellafield was forced into a humiliating apology on Wednesday after admitting a raft of cost overruns, performance failures and an expenses scandal.
Tom Zarges, the head of Nuclear Management Partners (NMP), said he was a "long way from satisfied" by the track record of the business after it was pilloried by members of the Commons public accounts committee.Tom Zarges, the head of Nuclear Management Partners (NMP), said he was a "long way from satisfied" by the track record of the business after it was pilloried by members of the Commons public accounts committee.
"We are humbled and truly sorry for any of those events which have cost British taxpayers money," said Zarges, who insisted nevertheless that NMP was "not about earnings", but about performance. "While we have had achievements we are not satisfied with those achievements. We are a long way from satisfied," he added."We are humbled and truly sorry for any of those events which have cost British taxpayers money," said Zarges, who insisted nevertheless that NMP was "not about earnings", but about performance. "While we have had achievements we are not satisfied with those achievements. We are a long way from satisfied," he added.
The Guardian reported this week that the bill for cleaning up the Cumbria site will rise even higher than its current estimated figure of £70bn as operators struggle to assess the full scale of the task.The Guardian reported this week that the bill for cleaning up the Cumbria site will rise even higher than its current estimated figure of £70bn as operators struggle to assess the full scale of the task.
Zarges was forced onto the defensive after MPs quoted extensively from a review prepared by auditing firm KPMG for the Nuclear Decommissioning Authority (NDA), the public body charged with overseeing NMP and Sellafield.Zarges was forced onto the defensive after MPs quoted extensively from a review prepared by auditing firm KPMG for the Nuclear Decommissioning Authority (NDA), the public body charged with overseeing NMP and Sellafield.
A redacted copy of the accountant's report was leaked last month by an environmental consultant, David Lowry, causing the committee's chair, Margaret Hodge, to express astonishment that the contract had been extended by the NDA. A redacted copy of the accountant's report – obtained through a freedom of information request last month by an environmental consultant, David Lowry, and given to the PAC – caused the committee's chair, Margaret Hodge, to express astonishment that the contract had been extended by the NDA.
By Wednesdaythe parliamentary committee members were in possession of an even more damaging unredacted KPMG appraisal document and they used it to embarrass both Zarges and John Clarke, the chief executive of the NDA, as well as Tony Price, the managing director of Sellafield, who had all been called before the PAC.By Wednesdaythe parliamentary committee members were in possession of an even more damaging unredacted KPMG appraisal document and they used it to embarrass both Zarges and John Clarke, the chief executive of the NDA, as well as Tony Price, the managing director of Sellafield, who had all been called before the PAC.
The report, which committee members suggested had been redacted heavily by all those clean-up partners to avoid their own embarrassment, showed KPMG critical of NMP on a range of issues including performance targets, project management, ability to predict costs and engineering capabilities.The report, which committee members suggested had been redacted heavily by all those clean-up partners to avoid their own embarrassment, showed KPMG critical of NMP on a range of issues including performance targets, project management, ability to predict costs and engineering capabilities.
Hodge repeatedly invited the atomic clean-up consortium boss to apologise after expressing scepticism that NMP was capable of improving its performance at the site.Hodge repeatedly invited the atomic clean-up consortium boss to apologise after expressing scepticism that NMP was capable of improving its performance at the site.
"This enormously critical [KPMG]report about the way you and Mr Price have operated the site … I am left bewildered as to why the contract has been re-awarded." Zarges said he did not accept that the KPMG report was a fair and accurate assessment, but later accepted that all these separate issues "require an element of correction"."This enormously critical [KPMG]report about the way you and Mr Price have operated the site … I am left bewildered as to why the contract has been re-awarded." Zarges said he did not accept that the KPMG report was a fair and accurate assessment, but later accepted that all these separate issues "require an element of correction".
The NMP consortium, which is led by URS of the US alongside Areva of France and Amec of Britain, was particularly criticised by MPs over the "inappropriate" way it had overused a system under which it can second staff from its global network to come in and work in Cumbria.The NMP consortium, which is led by URS of the US alongside Areva of France and Amec of Britain, was particularly criticised by MPs over the "inappropriate" way it had overused a system under which it can second staff from its global network to come in and work in Cumbria.
The cost of doing this was on average £300,000 per person per year, and KPMG and the committee members expressed deep concern that such a scheme, which clearly benefited the consortium, was being used even for back-office staff at extra cost and to the disadvantage of local people.The cost of doing this was on average £300,000 per person per year, and KPMG and the committee members expressed deep concern that such a scheme, which clearly benefited the consortium, was being used even for back-office staff at extra cost and to the disadvantage of local people.
Zarges insisted that all the staff who were brought in did so on merit, but even Clarke admitted that the system had got out of hand and some of the secondees were not as good at their jobs as he would have expected.Zarges insisted that all the staff who were brought in did so on merit, but even Clarke admitted that the system had got out of hand and some of the secondees were not as good at their jobs as he would have expected.
There was also heavy criticism over NMP expenses that had been revealed in earlier media reports. Among the items picked on by Hodge was a £714 bill for a "cat in a taxi".There was also heavy criticism over NMP expenses that had been revealed in earlier media reports. Among the items picked on by Hodge was a £714 bill for a "cat in a taxi".
Zarges said that the unusual bill was a taxi required for a Sellafield executive and his family who had come to the end of their term of employment in Cumbria. The NMP chairman pointed out that the consortium had paid back money – estimated at £100,000 – and changed its procedures to ensure such things did not happen again. He added: "We apologise for the errors that we made. We are sorry for that."Zarges said that the unusual bill was a taxi required for a Sellafield executive and his family who had come to the end of their term of employment in Cumbria. The NMP chairman pointed out that the consortium had paid back money – estimated at £100,000 – and changed its procedures to ensure such things did not happen again. He added: "We apologise for the errors that we made. We are sorry for that."
• This article was amended on 5 December 2013. The earlier version incorrectly said that David Lowry "leaked" the KPMG report prepared for the Nuclear Decommissioning Authority.
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