Financial Times FT.com

COMPENSATION DEAL A SHAM, SAYS MP

By Jean Eaglesham, Chief Political Correspondent

Published: January 23 2007 02:00 | Last updated: January 23 2007 02:00

The biggest compensation deal between the government and a computer supplier was branded a "sham", after it emerged that it would take a century for taxpayers to get their money at the current rate of repayment, writes Jean Eaglesham.

EDS last year paid only about £250,000 of £26.5m it owes HM Revenue & Customs, under a settlement worth a total of £71.2m agreed in late 2005 in relation to the IT problems that afflicted the introduction of tax credits, it is revealed in today's Computer Weekly magazine.

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