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Danny McCance 13 Feb 2018 04:03pm

Government brings in Deloitte to monitor Interserve

The Cabinet Office has tapped the Big Four firm to monitor struggling support services and construction group Interserve

Following the recent collapse of Carillion, the government asked Deloitte to advise on public sector contracts held by Interserve, according to Sky News.

The Cabinet Office had previously set-up a team in the wake of the Carillion failure to monitor the business, which had a turbulent 2017.

Interserve saw its shares plummet in September after posting a profit warning. PwC was brought in as financial advisors, while a consortium of lenders also engaged EY for financial advice.

 "We regularly meet with all of our suppliers to ensure the efficient delivery of public services. We do not believe that any of our strategic suppliers are in a comparable position to Carillion”, a government spokesperson said today.

In December last year Deloitte was reportedly barred from bidding for government contracts after it was forced to apologise after it leaked a memo criticising prime minister Theresa May’s Brexit strategy.

 The firm drew further criticism today, alongside its Big Four rivals, from MPs who accused the firms of “feasting” on the “carcass” of Carillion because they received a combined £71.6m in fees.

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