Wednesday 14 September 2016

HMRC Nixes Concentrix Contract

HMRC has decided not to renew its contract with Concentrix, the firm responsible for handling tax credit fraud.

Loyal readers will be aware that there have cock up's wrt how this area has been handled. Nonetheless Concentrix feel that HMRC's decision reflects badly on Concentrix's reputation.

That aside the contract runs until May 2017.

Tax does have to be taxing.

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15 comments:

  1. Once again its the staff that have got to clear up the shit that these outsourced companies who clearly were not up to the job. Where was the due diligence, was it bypassed because Concentrix could do it on the cheap..fuck up after fuck up from HMRC. 150 staff have got to be redeployed where they are hard pressed to be able to free anyone because of the cuts made to headcount. Why have Concentrix's contract been terminated forthwith? Has HMRC agreed to a contract that is massively in favour of the contractor - nothing new there then. Concentrix should never be able to bid for any government contract again after this fuck up.

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  2. Without knowing the full details its difficult to comment on exactly where Concentrix went wrong, save as to they have caused huge upset to members of the public caught up in it all. This could all be very unfair on the company for all we know. Where does the blame lie? Why did HMRC outsource this in the first place? Things like Contact centres and the whole debt collection process should all be considered for outsourcing, but the potential pitfalls of outsourcing investigation work should be plain to see. What due diligence was carried out by HMRC? What instructions did HMRC give to the company? What incentives did HMRC put in the contract and why did they do so? How was the contract supervised? How was confidentiality ensured? Which senior manager was responsible for the contract? While there are many dedicated frontline HMRC staff doing, we all know that due to its mismanagement HMRC is far from perfect and make too many mistakes themselves. Its too easy and simplistic for HMRC to blame the company; the focus needs to be on the senior civil servants at HMRC, who would appear to be avoiding accountability as usual. Perhaps a thorough investigation into the culture & practices of HMRC may start to bring some answers...

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  3. Jon Thompson CEO of HMRC even re-tweeted Martin Lewis' tweet announcing they won't be extending the contract and saying many whose credits were stopped will be 'relieved'. The very fact the head taxman has retweeted this would lead one to think HMRC consider themselves blameless in this latest shambles. Total arrogance - no surprise though. HMRC management should be held to account over how this was allowed to happen.

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    1. Jon Thompson can retweet it safe in the knowledge he wasn't with the department when the poxy contact was signed AND this makes him look sympathetic to those who have suffered.

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    2. Its all about image and spin with HMRC, he's 'just' the new guy. Some of the appalling cases have happened since he took over 6 months ago though, so where was his supervision? He can't make himself unaccountable that easily. On the issue of his twitter usage, I am not sure the public want to know about his holidays & hobbies etc (much of the public, like the people caught up in this latest scandal can't afford such things) - it doesn't really help reading his boasts when they're on the receiving end of HMRC's shambolic performance.

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  4. We need a PAC investigation into this, mistakes are happening far to often its embarrassing.

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    1. How has the PAC affected anything HMRC have ever done, in reality? They talk a good game, follow it up with fuck all. Complete waste of space.

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    2. The PAC has been very effective overall in raising awareness of HMRC's failings, but sadly it has resulted in little or no change. The problem is with HMRC, who are unaccountable and the normal rules do not apply to them. Until the PAC or others can persuade the Government to introduce a new independent system of governance for HMRC, the senior management will have little incentive to change.

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  5. I wonder what the penalty clauses were that has stopped HMRC ending the contract NOW! (lets be honest HMRC can't draft a contract in their favour to save their lives). Let alone giving them until next year to cause even more upset.

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    1. The senior management probably take 20 people to write one letter (helps to avoid individual accountability), so there's not much hope they can draft a contract professionally.

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  6. http://www.independent.co.uk/news/uk/politics/concentrix-tax-credits-letter-hmrc-paid-tax-privatisation-a7294146.html

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  7. What a tangled web we weave, weaving spiders come not here...
    suggest you look up definition of accountability?

    Anyone with a grain of common sense (not purpose) will have seen this coming since day 1. Who is really accountable though, maybe not who you first might think.

    Ask Dame Margaret.

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    1. It would appear accountability is not a requirement at the top of HMRC much to the detriment of taxpayers who need protection. In any event normal rules of integrity and common decency do not apply here. The details in Dame Margaret's book shock members of the public who remember the days of the Inland Revenue, where you could at the very least trust them and expect certain standards. The 'new' culture following the inception of HMRC, explains how you rise from being a failure in previous public jobs, a returning officer involved a voting scandal that "would disgrace a banana republic", to the top of HMRC, followed by a massive pay off and publically funded gold-plated pension - a reward for failure if ever there were one.

      And they wonder why HMRC has little or no professional credibility these days.

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    2. Picked up book, commenced reading, bloody hell, not so much a whistle blow as a screaming 2 minute Atomic Bomb warning.
      Messrs Hartnett & Homer (remember that awesome duo?) well there do not appear to be any punches pulled. Yes I know Hodge is one of the powers that be, but that is in the open, and hypocrisy not withstanding, the boot is certainly put in by her in this book. No mention of IPCC that I could see nor HMIC, which as she is shouting abount responsibility and accountability seems a bit odd.
      No doubt the book will create topic posts of its own as others read and digest.

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  8. this is the original tender-

    https://www.delta-esourcing.com/delta/viewNotice.html?noticeId=76198749

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