Having previously reported on the CDC / Actis debacle, the most shocking of all Labour's privatisations, it seems that Taxpayers have again been deprived of tens of millions of pounds by yet another, while the civil servants who architected the deal have pocketed over £107m in return for their investment of just £540,000.
A third of Qinetiq was sold to the US private equity group, Carlyle, for £42m in 2003. Lord Moonie, the minister behind the original sale to the US buyout firm, said that he tried to delay the deal. Stock markets had slumped and Lord Moonie felt that the Ministry of Defence would not receive a decent price for its shareholding. But he was unable to resist pressure for the sale from the Treasury, including direct influence from Gordon is a Moron, chancellor at the time. "We were reluctant to proceed with the sale, but a combination of the Treasury and the fact we needed the money for items in our budget persuaded us to go on with it" Lord Moonie said.
Carlyle's one third of Qinetiq grew in value to £372m, giving it a nine-fold return on its money. Qinetiq's two most senior executives, chairman Sir John Chisholm and chief executive Graham Love, made particularly spectacular gains. Chisholm invested £129,000 in the company and now has shares are worth £23m. Love has seen his £106,000 investment grow to £20m. The National Audit Office uncovered that Qinetiq's bosses were allowed to negotiate the terms of their own incentive scheme with Carlyle while the private equity firm was bidding for the business.
Once again, the government has sold off a valuable national asset for a pittance at the taxpayer's expense, providing huge profits for the purchaser and in particular, the senior civil servants involved.
Bastards ... slimy bastards all over the world!
A third of Qinetiq was sold to the US private equity group, Carlyle, for £42m in 2003. Lord Moonie, the minister behind the original sale to the US buyout firm, said that he tried to delay the deal. Stock markets had slumped and Lord Moonie felt that the Ministry of Defence would not receive a decent price for its shareholding. But he was unable to resist pressure for the sale from the Treasury, including direct influence from Gordon is a Moron, chancellor at the time. "We were reluctant to proceed with the sale, but a combination of the Treasury and the fact we needed the money for items in our budget persuaded us to go on with it" Lord Moonie said.
Carlyle's one third of Qinetiq grew in value to £372m, giving it a nine-fold return on its money. Qinetiq's two most senior executives, chairman Sir John Chisholm and chief executive Graham Love, made particularly spectacular gains. Chisholm invested £129,000 in the company and now has shares are worth £23m. Love has seen his £106,000 investment grow to £20m. The National Audit Office uncovered that Qinetiq's bosses were allowed to negotiate the terms of their own incentive scheme with Carlyle while the private equity firm was bidding for the business.
Once again, the government has sold off a valuable national asset for a pittance at the taxpayer's expense, providing huge profits for the purchaser and in particular, the senior civil servants involved.
Bastards ... slimy bastards all over the world!
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