• silicon.com
• Management
• CIO Insights

By Suzanna Kerridge, 27 November 2001 06:30

NEWS Police have launched a fraud inquiry into a UK government training scheme aimed at creating thousands of IT professionals. The Individual Learning Accounts programme, which was introduced in September 2000, was designed to provide a £200 discount to anyone over the age of 19 wanting computer or maths training. But an estimated £200m has been embezzled as hundreds of bogus training companies claimed the government grant. By getting a person's signature on a form, the government grant could be claimed. Abuse of the scheme led to it being closed prematurely, leaving thousands of would-be students in limbo. A spokesman for the Department for Education and Employment (DfEE) blamed poor administration for the scheme's failure. London-based Capita was paid an estimated £50m to manage the ill-fated project. A spokeswoman for Capita said: "We were following the guidelines and procedures set out by the DfEE and of course all companies underwent various verification procedures. It was a very successful partnership." She referred all other inquiries to the DfEE. Learning providers were quick to blame Capita for the failure. "This is 110 per cent Capita's fault. We have been left high and dry with no information about what will happen next, who will meet our costs or train those on the scheme," said Alex Gordon, managing director of IF-tech - one of the training companies left in the lurch. He claimed his business would lose up to £25,000 as a result of the closure. "We were forced into this scheme by the government and we have people who've just signed up, but now it's been shut. It's ridiculous - the last I heard was that it was going to be extended," he added. Around 250 out of 8,500 training companies are under investigation. However, learning providers are furious, claiming they have been tarred by the same brush. James O'Brien, a founding member of the Association of Computer Trainers (ACT) and managing director of Pitman Training, said: "With this scheme it was very easy to get in, make a fast buck and get out. There were no rules, no regulations and no monitoring. People were able to exploit this loop hole." He disputed Capita claims that quality control checks were carried out. "This is a company with very little control over, and no understanding of, the scheme - they just let the cowboys in. We're not talking about having lots of bureaucracy. They could have piggy-backed other training associations." The debacle has dented users' trust in training providers, added O'Brien.