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Whatever happens, the MoD and General Dynamics (UK), the makers of Ajax, seem on course for a legal battle over the eye-watering sums involved.
Secretary of State for Defence Ben Wallace, who inherited the Ajax debacle, pulled no punches when he said: ‘We paid for a piece of equipment, we expect it to be delivered, and like any consumer we have rights. If it’s not up to scratch, we’ll take action.’
If only things were so simple. General Dynamics (UK) has received in excess of £3 billion for design and manufacturing work already completed, and these payments were made after the MoD agreed the company had met its production targets. The money will never be seen by the taxpayer again.
So where does responsibility lie?
The answer is complicated but involves an extraordinary ‘revolving door’ process whereby senior Army staff have ended up working for the firm that makes Ajax, General Dynamics (UK).
It includes decisions to reject a cheaper alternative made by British Aerospace (BAe), and then to change the vehicle’s design half-way through the process.
On top of this, there is the hubris of decision makers in the Army with their insistence that only the very best machine, with the latest technology, would do.
To understand where things went wrong, we must examine these issues, starting with the ‘revolving door’ between the MoD and General Dynamics (UK).
Certainly, for a clique of former British Army generals, the company has proved highly lucrative.
After overseeing procurement projects at the MoD, for which they were handsomely rewarded and given gold-plated pensions, they cashed in by joining the arms manufacturer.
General Dynamics (UK) hires these senior officers and defence officials not only because of their knowledge of securing contracts, but also because of their relationships with their successors at the MoD — the people responsible for deciding what equipment the UK’s armed forces should purchase.