Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

Mark Leftly: Conflict of interest and the MoD contracts

Mark Leftly
Tuesday 20 August 2013 19:15 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

Outlook The retirement of Linda Hudson, the chief executive at BAE's US division, has rightly grabbed the headlines given her star status in the defence industry, but the resignation yesterday of a non-executive director is arguably of far wider significance.

Last month, The Independent on Sunday revealed the extraordinary conflicts of interest facing the companies that want to run the £14bn budget Ministry of Defence agency that buys aircraft carriers, tanks and missiles. This huge quasi-privatisation could see companies that work for BAE and its rivals being responsible for dishing out contracts to them, too.

One of the clearest conflicts was that Lee McIntire was a non-executive director at BAE while at the same time being chairman and CEO of CH2M Hill, the US engineering giant that is heading one of the two consortiums bidding to take over Defence Equipment & Support. At the time of our investigation, Mr McIntire conceded that he would "of course" give up his board seat at BAE.

However, that process is well over a year from completion. By quitting at a far earlier time – and BAE itself said the reason was "to avoid any potential conflict of interest" – the Nebraska University graduate has proved that these issues must be resolved by the other companies involved, which include the already reputationally challenged Serco.

The MoD must not wait to sort out the web of conflicts until after bidding has concluded. Handing over the coffers to buy the nation's battle-gear to the for-profit sector is already far too great a risk without the perception that members of the winning consortium will do favours for their mates, whether that be the case or not.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in