Secret documents show a battle is underway to protect crucial public services from the possible collapse of tech giant Atos, which handles billions in government contracts.
Files have been accessed by the BBC show since January. Consultants are being worked with, with the aim of limiting the “serious implications” for essential services by identifying alternative IT providers.
The UK government is outsourcing IT services, including for NHS administration and disability benefits, to the UK arm of the French IT giant, which admitted in April to more than £3 billion in debt and is now undergoing a financial restructuring.
The risk assessments, first reported by i newsshow that the government and the Ministry of Justice have hired consultants from PwC to assess the company, described as “in financial distress”, to “ensure the continuity of crucial public services”.
The BBC has seen the unredacted files, which were accidentally released into the public domain by the Cabinet Office in May, although they have been hastily replaced with blank pages.
The documents show that PwC was hired early this year to work on a risk assessment project codenamed ‘Project Aztec’.
Project Aztec is believed to refer to Atos, with Aztec Group referring to its Paris-based headquarters and Aztec UK to its London-based subsidiary.
Atos shares plummeted in January when the group replaced its leader amid ongoing debt problems, missed financial targets and reportedly tried to open negotiations with creditors.
Last week, the French government made a £600 million (750 million euros) offer to buy the company’s most sensitive businesses, and Atos accepted a £600 million (750 million euros) offer. financial restructuring plan led by French investor David Layani.
In January, the Cabinet Office asked PwC to assess what was likely to happen to government contracts if the wider company were to fail, and whether the restructuring options being considered by the French government would include the financial bailout of Atos’ British arm.
According to the document, the government sought advice on “the likely impact on the crucial contracts of Aztec UK and His Majesty’s Government (HMG) in the event that any part of the Aztec Group were placed into insolvency…
“Review and comment on any financial support provided by the French government and whether it can be ring-fenced from the British group ‘Aztec UK’, which provides the services under HMG contracts.”
Atos has invoiced the government for contracts worth around £6 billion since 2016 and currently has more than 40 government contracts worth almost £1 billion.
The company is involved in IT systems at the Ministry of Defense, the Ministry of Justice and the Interior, including:
- NHS health records in hospitals
- Assessment of disability benefits for personal self-employment payments (PIP)
- Data for the student loan company
- Tax refunds from His Majesty’s Revenue and Customs (HMRC)
Jonathan Ashworth, Labour’s shadow paymaster-general, said the documents show ministers should focus on key issues “taking place in the real world under their watch”.
He added: ‘The fact that a contract of such extreme commercial sensitivity was accidentally published is not only evidence of breathtaking incompetence, it is also a worrying indication of the grip the government should have on this issue , completely missing.
“After fourteen years of Tory chaos, it’s time to turn the page and rebuild Britain with Labour.”
A Cabinet Office spokesperson declined to name the company known within the government as Aztec, but said: “We carry out regular reviews of suppliers and will occasionally carry out further due diligence to ensure public services can be maintained in different scenarios.”
A spokesman for Atos said he could not comment on this matter, but on the wider issue of the company’s financial problems he said: “Atos is currently undergoing a financial restructuring and has reached an agreement with a consortium and its creditors, which will see a stable situation will arise.” financial future worldwide and in Britain.
“Services to our customers are unaffected and we will continue to provide high quality services to the UK public sector as we have done for more than 30 years.”
PwC declined to comment.
The Conservative Party has not yet responded to requests for comment.