RE: j(p)am today5 Oct 2018 23:42
tesco: the 'fraud' there was not the real fraud I mean, it was rather some accounting methods - the company still had infrastructure, stores, drivers, production, stocks of goods etc
carillion; the whole sector smells of 'fraud' to me; they owned nothing and trade nothing for nothing, all this outsourcing thing, getting some contract and then getting some other people to perform it.
take mick s post from the carillion board to explain how it works
Three contractors are asked to bid to refurbish the fence at 10 Downing Street.
One contractor is from Birmingham, another is from Liverpool, and the third is from London. All three meet with a civil servant in Downing Street.
The Brummie contractor takes out a tape measure and does some measuring, then works some figures and says, "I figure the job will run about �900. �400 for materials, �400 for my crew, and �100 profit for me."
The Scouse contractor also does some measuring and figuring, then says. "I can do this job for �700. �300 for materials, �200 for my crew, and �200 profit for me."
The bloke from London doesn't bother to do any measuring or calculations; he just leans over to the civil servant and whispers, "I'll do it for �2,700."
The civil servant is understandably incredulous, and says, "You didn't even measure like the others ! How did you come up with such a high estimate ?"
The London bloke whispers back, ��1000 for me, �1000 for you, and we hire the guy from Liverpool to do the job." "Done!" replies the civil servant.
Now do you see how Carillion went under, leaving the taxpayer with the bills ?
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