[ad_1]
George Osborne has been severely criticized by an influential parliamentary committee for wasting up to £ 50 million of public money on luxurious central London offices for the National Center for Cyber Security (NCSC).
The Intelligence and Security Committee (ISC) said the decision to acquire a workspace at Nova South in Victoria, central London, was “unacceptable” and had “an emphasis on image rather than cost.”
Then-Chancellor Osborne overruled national security adviser Sir Mark Lyall Grant’s advice to force the purchase of the office space located in the ultra-modern Nova development from real estate company Land Securities, according to a report released today.
The offices, near the Houses of Parliament and New Scotland Yard, will cost £ 96 million to rent over 15 years, while an all-cost alternative in Canary Wharf would have cost £ 46 million over the same period.
ISC members Kevan Jones and Stewart Hosie said a better decision-making process would have benefited the public purse and questioned why Lyall Grant had not sought “ministerial direction,” a formal instruction from a minister to spend public money. despite a spending objection. official – about the decision.
“The role of the ministers in the process as a whole was very unsatisfactory, culminating in the then chancellor overriding the very strong advice of the then national security adviser to reject Nova South, in order to confirm what the GCHQ had left in of course it was the only option they would accept. In this sense, we note that the then national security adviser did not seek ministerial leadership, ”they said in a statement.
Osborne announced the creation of a National Cyber Security Center in 2015 and was tasked with beefing up security against growing online threats from around the world.
A consulting firm drew up a shortlist of 10 options for potential offices: three were taken from tech hubs, two were near Westminster, and five were newly introduced options within the portfolio of existing agency and MoD properties. (MoD).
The final list ranked Canary Wharf, an already government-rented property, the best option, with new-build commercial properties in Nova South and Shoreditch in second place, followed by an existing agency-owned building.
Soon after, GCHQ decided that Nova South was their preferred option, with Canary Wharf as the alternative backup option.
On April 26, 2016, Robert Hannigan, Director of GCHQ, wrote to Lyall Grant seeking his formal approval, as the agencies’ chief accountant, for the full Nova South business case draft.
On May 4, 2016, Lyall Grant wrote to the Chancellor, in his capacity as chair of the National Security Council’s Subcommittee on Cybernetics. He wrote: “From the perspective of an accountant, [Nova South] It causes me some concern, both for profitability reasons and deliverability reasons. Therefore, I would advise against the agreement unless there are other ministerial and public expectation considerations that have not been fully expressed in the commercial case. “
Crucially, given the importance that had been placed on an October release date, Lyall Grant found that Nova South could not be delivered within the specified time frame.
“The letter is complete and unequivocal. As the agencies’ chief accountant, and therefore accountable to parliament for their expenditures, the national security adviser opposed the choice of Nova South, ”the report noted.
Shortly after this council was sent out, Lyall Grant met with Osborne to discuss this issue, but no notes from the meeting could be found, which the committee said was “very surprising.”
“We are informed that no note of this meeting can be found. We find this very surprising, since private secretaries used to attend the detailed meetings that their ministers hold. However, we have been informed that meetings between the NSA and the chancellor were not recorded regularly, ”the report says.
On May 18, 2016, Osborne’s private office sent an email to the NSA. It read: Based on your discussion last week and the additional information provided by GCHQ, the Chancellor understands that the options presented in his business case are finely balanced. While [Canary Wharf] it is cheaper, the chancellor’s opinion is that Nova South is more compliant with the NCSC criteria as it presents a more modern and high-tech image and is closer to Whitehall and partner agencies. “
In the report, Jones and Hosie continued: “From the beginning, the selection criteria used were flawed.
“Locations outside of London were never considered, and great emphasis was put on finding high-end accommodation, with no regard for that being necessary.
“Even without taking into account the flawed criteria, it is clear that GCHQ selected Nova South taking into account all the evidence and caveats that it would not be ready on time or receive approval from the government-owned unit.
“Nova South cost roughly twice the cost of a typical government accommodation in London – this was allowed because the scoring system GCHQ chose significantly underweight costs and overweight location.”
The ISC said the cost of Nova South equates to more than “21,000 per staff member per year,” more than double the average government cost for London-based staff.
Funding originally allocated for the NCSC office was £ 3.5 million per annum.
Boris Johnson said the government “recognizes that there are lessons to be learned from the procurement process” and that it would respond to the committee’s recommendations in due course.
In a written statement, he said: “Nova South met all key criteria required by the government, including proximity to Whitehall and other stakeholders within the government safe zone.
“Another factor that contributed to their selection was their availability, allowing the NCSC to establish itself at the pace, within a year, providing a hub at a time when there was an urgent need for the government to increase its defensive cyber capabilities and respond. to global cyber incidents like WannaCry.
“Nova South has provided a much-needed core focus for UK cybersecurity since its acquisition, hosting a wide range of industry and government partners, as well as contributing to our global commitment to cybersecurity and UK ranking. as number one for the global cybersecurity index. “
