The follow features in Rotten Boroughs in the latest addition of Private Eye:
Nearly three years ago Eye 1193 reported on the chaos that ensued after LibDem Vale of White Horse council in Oxfordshire "outsourced" the handling ofits finances to Capita in a seven year, £9.1m deal. Staff did not get paid and - horror - councillors did not receive theirexpenses on time. The council was even threatened with having itselectricity cut off because Crapita forgot to pay the bill. But that was then. Surely it's all sorted now? Er, no. An Audit Commissionreport reveals that VoWH and neighbouring South Oxfordshire lost £960,000between them in 2008-09, due to administrative errors by Capita and poorprocedures that allowed fraudsters to pocket hundred of thousands of poundsof housing benefit they were not entitled to. A spokesman for the councils tried to pacify locals with an assurance thatthey would get most of the dosh back because the government is obliged tocover such a loss. Either way, it's still taxpayers who end up out of pocket. PS. Crapita's pre-tax profits last year were £258.1m.