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29 March 2012
Issue: 7507 / Categories: Legal News
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MoJ financial failings

Public Account Committee criticises MoJ financial management

MPs have raised concerns over financial management at the Ministry of Justice (MoJ).

A Public Accounts Committee report has revealed that the MoJ impact assessment on the proposed legal aid reforms failed to cover the full impact of the cuts. There has also been a dramatic increase in the amount owed to the government under fines and confiscation orders, which now stands at almost £2bn. Sixty per cent of the £1.25bn owed in confiscation orders may never be recovered.

Margaret Hodge MP, chair of the committee, said financial management had improved since the last report but that the MoJ “remains unable to deliver timely and accurate financial accounts”.

An MoJ spokesperon said: “The government has significantly improved the way fines and confiscation orders are collected.

“We have increased deductions from benefits, introduced asset seizures and begun programmes of targeted blitzes. Already we’re seeing results, with £282m [of] fines collected in the last financial year. We are also taking steps to recover the full costs of court services by introducing simpler fees and, where necessary, changing court costs.”

Issue: 7507 / Categories: Legal News
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MOVERS & SHAKERS

Hogan Lovells—Lisa Quelch

Hogan Lovells—Lisa Quelch

Partner hire strengthens global infrastructure and energy financing practice

Sherrards—Jan Kunstyr

Sherrards—Jan Kunstyr

Legal director bolsters international expertise in dispute resolution team

Muckle LLP—Stacey Brown

Muckle LLP—Stacey Brown

Corporate governance and company law specialist joins the team

NEWS

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HERBERT SMITH STAFF PENSION SCHEME (THE “SCHEME”)

NOTICE TO CREDITORS AND BENEFICIARIES UNDER SECTION 27 OF THE TRUSTEE ACT 1925
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