Report slams Translink for £20m overspend
Auditors delivered a damning verdict on Translink today over a major railway line refurbishment in the North which careered nearly £20m (€29.5m) over budget.
With glaring failures identified in the economic appraisal, refurbishment of the Belfast to Bangor route cost more than twice the original price and was completed nine months late.
Northern Ireland Auditor General John Dowdall’s report also revealed the project involved massive losses to the public purse.
Excessive generosity to the rail operator’s staff came under fire too, with bosses failing to provide oversight on decisions which put funds at risk.
Translink’s Head of Infrastructure received a £28,500 (€42,000) golden handcuffs payment to stay on during the upgrade after announcing plans to retire early.
The firm also paid for two retirement functions for him at golf clubs in Wicklow and Antrim.
No supporting documentation was provided for these or two Christmas bashes the head of infrastructure threw for his staff, putting the £1,250 (€1,840) bill on a company credit card.
When he did quit the bulk of files and paperwork in his possession were scrapped.
The report declared: “Translink’s documented record was the worst we have ever encountered.
“Key decisions were not documented and problems were compounded by the removal and destruction of documents by the former Head of Infrastructure.”
The Audit Office insisted proper management could have cut out problems such as a lack of procedures for overseeing the project, consultants and shortcomings in procurement practices.
The 11.5 mile Belfast to Bangor line is one of the North's busiest rail routes, carrying nearly two million passengers a year.
Refurbishment needs led the Department for Regional Development to approve a project to completely re-lay the line in January 2001.
With a total budget of £14.7m (€21.6m) set, including a European grant of £7.5m (€11m), the project was scheduled to be finished by December 2001.
But a series of difficulties saw the final cost surge to nearly £34m (€50m) and completion slip to September 2002.
A key failure centred on the economic appraisal which under-estimated the price of the project, the report found.
The Department accepted Translink’s assurances on the accuracy of these forecasts and allowed the scheme to proceed even when it was clear the projected costs were well in excess of the budget.
“This has been referred to as the fatal flaw in the decision making process, because a reappraisal at this stage would have highlighted that the project was not viable at the approved budget,” the report said.
Proper contract specifications were not provided either by Maunsell Rail, Translink’s lead engineering consultants, who also failed to deliver track designs.
This contributed to multi-million pound claims from construction contractor Mowlem Rail.
Even though Maunsell’s appointment was terminated by agreement in November 2001, no damages could be recovered because the terms of the settlement waived Translink’s right to claim.
“It is difficult to be exact about the quantum of any loss to the public purse,” the report said.
“However, we estimate the potential loss is in the region of £8m-£13m.”
As well as the increased costs, uncertainty was expressed over whether the intended benefits were delivered.
The original 90mph speed limit was reduced to 70mph, while work on bridges and sea defences were removed from the contract to reduce costs.
With action demanded to improve future performance, the dossier’s recommendations included: control over the movement and location of records; guidance being issued on the avoidance of excessive generosity to employees; and a review to ensure construction procurement procedures are fully compliant with all legal requirements and accepted best practice.
A Stormont MLA branded the squandered money a scandal and demanded an urgent hearing once the Public Accounts Committee resumes work at any new Assembly.
East Derry SDLP representative John Dallat said: “This report has serious consequences for the long-term future of the railways and the modernisation of the entire network.
“Money has been scandalously wasted which could have gone to renew the Belfast-Derry railway line instead.
“Shortcuts in making good the Belfast to Bangor line will come back to haunt Translink in 10 or 15 years time as the entire line was not renewed and new problems will arise much earlier than they should.”
Mr Dallat added: “Only a complete reorganisation of the Northern Ireland Transport Holding Company and Translink will bring about the changes that are needed if rail transport throughout this island is to be delivered to meet the changing needs of the commuter, the traveller and the tourist as well as freight users.
“The present set-up would make Robert Stephenson, the inventor of the famous ’Rocket’ locomotive, turn in his grave.”
Despite repeated attempts to gain a response from Translink, none was available.
A spokeswoman for the operator said all inquiries were being handled by the Northern Ireland Transport Holding Company, a public corporation with responsibility for implementing policy and planning.
No-one from NITHC was available to comment on the report.
