MoD loss of kit ‘alarming’, say MPs

The Commons Defence Select Committee said it was “dismayed” that the National Audit Office had qualified the MoD’s accounts for the fourth year in succession after the department lost track of assets worth £6.3bn – including £184m worth of radios.

James Arbuthnot, the Conservative chairman of the Defence Select Committee, said: “The MoD’s inability to manage existing resources makes it harder for them to request additional funding. It is also worrying that the work carried out so far to address previously raised concerns has simply revealed how big these problems are.”

The committee said the MoD must speed up its plans for sorting out the problems with its stock control system – currently expected to continue for another two to four years.

“It is alarming that the department should be unaware of the location, usability or indeed the continued existence of assets to a total value of £6.3bn,” it said.

“We recommend that the department take whatever measures are necessary to expedite the process of ensuring that it knows how much stock it has, where it is and in what condition.

“We expect to see an abbreviated timetable for achieving this, and an explanation of the measures taken to achieve it, in the response to this report.”

Defence Secretary Dr Liam Fox said: “As I have repeatedly said, the Ministry of Defence has not managed its resources well for many years.”

“We inherited a multi-billion pound deficit in defence from the previous government that was characterised by waste and inefficiency under Labour. That must change.”

“While there are specific difficulties in managing assets in war zones across the globe, we must have better systems in place to accurately track what resources are held and where.”

“I announced major defence reforms last week to deliver clearer structures and financial responsibility across the department.”

“This will be implemented at pace and I wish to see demonstrable improvement in the MoD’s inventory management.”