Consultant paid nearly £100,000 in six months to fix PFI contract he designed

The man who used to pull in £180+k/year while he was setting up the Isle of Wight roads PFI is back being paid by IWC and as well as being paid £95,000 for six months’ work to fix the contract, his £750 per month rent is covered by IWC.

The PFI contract being signed

As reported by OnTheWight in March last year, the architect of the Isle of Wight’s controversial highways PFI is back on the Island was paid £95,000 for six months’ work fixing the contract he put together.

The Isle of Wight Council said last July, Jay Jayasundara (pictured middle), of Jasmine Consulting, would be paid £70,000 to explore cost-cutting measures within the contract.

However, between July and December, Jasmine Consulting was paid £95,761 by the council.

Housing costs for consultants “normal practice”
This includes a monthly payment of £750 to Island letting agents Hose Rhodes Dickson. This would pay for a two or three bedroom house on the Isle of Wight.

A council spokesperson said it was normal practice to pay for accommodation costs for consultants when the work goes on for a long period of time.

She said:

“It is normal practice for consultants to charge agreed expenses, which can be over and above the fees for their work. Expenses can include accommodation, travel and other subsistence costs, the scope of which is agreed in advance.”

In December, the latest figures available, Jasmine Consulting was paid £31,425.

In November, Mr Jayasundara was not paid for any work, but the council continued to pay rent to Hose Rhodes Dickson.

Brodie: “Supreme irony”
Independent Labour councillor, Cllr Geoff Brodie, said:

“Bringing back the man who designed the PFI contract in the first place to save the council money was the supreme irony.

“To learn that not only are we paying him £70,000 for six months work, but also housing him as part of an additional £25,000 charge beggars belief.

“At budget council on Wednesday we had a Conservative cabinet member telling us ‘children had to take their share of cuts’.

“Now we learn those cuts were partly to pay for a consultant’s no doubt palatial pad.”

On average, Jasmine Consulting was paid between £10,000 and £18,000 a month.

Council “confident services are proving to be valuable”
The Isle of Wight Council said it would review any expenses on a regular basis to ensure they represented value for money to the council.

A spokesperson said:

“In the case of Jasmine Consultancy, the council is confident the services offered by this firm are proving to be valuable in the ongoing work with the Island Roads contact arrangements.

“The payment to Jasmine Consultancy is a part of the wider project to save an estimated £40 million through changes to the contract with Island Roads.”

OnTheWight has requested a breakdown of savings achieved since being appointed in July 2018.


This article is from the BBC’s LDRS (Local Democracy Reporter Service) scheme, which OnTheWight is taking part in. Some alterations and additions may be been made by OnTheWight. Ed

Any views or opinions presented in the comments below are solely those of the author and do not represent those of OnTheWight.

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11 Comments on "Consultant paid nearly £100,000 in six months to fix PFI contract he designed"

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Highway to Hell

If there had been enough experienced oversight and scrutiny in the first case, we wouldn’t be in this current situation where the architect of this gravy train is returned to correct his original mistakes.

Nip

Thats what happens when years of cuts hollow out an organisation. While many may feel there is a need to cut back office staff to protect the frontline services, it leaves them with no one who can perform these roles.

Colin
The Island Roads PFI contract was announced by the Tory administation at the time as the answer to all the Island’s road problems and at a cost that was going to save the council tax payers £1 million per year. It was going to offer the best value for money ever seen. It was such a good contract that it would not be necccessary to retain any… Read more »
greenhey

Correct. It is a local example of the national situation where however bad outsourcers are, there is no chance now of taking it back into public management. And just like here consultants cream off fees for advising ( in some case) both sides- an absurd arrangement.

alisonjane
This is incompetence at the highest level. To re-employ this man at such an extortionate rate of pay is a kick in the teeth to all Island Council Tax payers. He pushed this PFI contract through knowing full well just how flawed it was. He then just breezed off, not even to be held accountable for all the flaws in it. Many Conservatives still serving on the… Read more »
CB500

I think a certain Mr Mike Starke is entitled to a big fat ‘ told you so! ‘ – Shame there were only about a dozen of us who listened to him re. PFI.

alisonjane

Doing it for half the money would still be £45,000 for 7 months work Mark L Francis. Nice work if you can get it.
To put this into perspective….this is 18 months worth of paid travel for those needing cancer treatment on the mainland ……which the Cabinet are set to axe the funding for on March 14th!

greenhey
About ten years ago I did work within a large reinsurance company based in East Anglia. I found they had decided to outsource a chunk of routine processing to a company in India and the people who manged this were praised for the costs saved. From the beginning it went wrong. It transpired the outsourcer hadn’t been too careful in recruitment, and the quality and time taken… Read more »
Mark L Francis

I’ll do it for half the money & I’ll use my own house.

Colin
@ Mark. I am very disappointed in your comment. The whole purpose of PFI contracts is to extract the maximum amount of money from gullible politicians who are stupid enough to commission such schemes. The foremost beneficiaries are the banks, consultants and beancounters and should any money be left over after they have taken their cut then it would be in order to throw a bit of… Read more »
elemental

Not just problems on the island either

https://www.whatdotheyknow.com/request/mr_jay_jayasundara