Staff failure behind Guernsey Hospital's hidden £30 million projected overspend, review concludes

  • ITV Channel's Fred Dimbleby reflects on the report and the political fallout


An independent review has concluded that "personnel failings" were to blame for the hidden, spiralling estimated price tag of Guernsey's hospital modernisation project.

The report was commissioned after civil servants were found to be 'withholding key costs' from politicians - they were subsequently sacked.

The reviewer said "three key personnel" were at fault for not alerting politicians that the plans had gone an estimated £30 million over budget.

This was however described as an "error of judgment" rather than any "wilful attempt to mislead".

It took 10 months for civil servants in the Project Management Team to notify the Health and Social Care Committee about the revised figures and then another two months for the Chief Minister to find out.

"Structural flaws" were therefore found not to be "the immediate cause of the problem" and the review concluded "the underlying project process adopted by the States is fit for purpose".

However, the report added "that in relation to capital projects, generally there needs to be a cultural change in thinking and decision making" and a "clearer reporting line".

Credit: Data visualisation by ITV Channel. Information sourced from the Governance Arrangements for Capital Programmes and Projects Report.

Guernsey's Chief Minister, Deputy Lyndon Trott, told ITV Channel: "I take enormous comfort from the independent reviewers conclusion and taxpayers can take comfort from the fact that the structures in place are adequate and fit for purpose.

"There is no accounting for the occasional strange misjudgment."

In a statement he added: "It is important to remember this relates to a potential cost increase but not an actual overspend and we are still of the view that the project can and should be completed within its approved budget".

However, Deputy Carl Meerveld paints a more damning picture.

He said: "Politicians were left out of the loop completely ... This was a systemic failure within the organisation of the Civil Service."

An error of judgment, that's how the withheld £30 million projected overspend of the Hospital Modernisation Project is being labelled.

There was no cover up and there are no structural flaws to blame for the lack of transparency over the bloating multi-million pound project.

The blame, it seems, lies squarely on the shoulders of three nameless civil servants.

These are the findings of States lawyer Martin Thornton's report, who was commissioned to independently investigate the chain of events that led to politicians being misled in regards to a project they were meant to be overseeing.

But the President of Health and Social Care (HSC) hasn't gotten off lightly. Deputy Al Brouard and his Committee were scalded by Mr Thornton for not telling Policy and Resources (P&R) sooner.

The projected overspend was known to HSC during a notable debate about trying to find funding for the Transforming Education Programme, a heated meeting where finances and funding were a crucial part of the decision making process.

Mr Thornton has since said that the Committee had a duty to tell P&R sooner, as the increased figures were pretty well established.

So while the findings of the review have now been published, and the blame has been confidently assigned, it might not do much to dampen down the disquiet and anger among elected members who think they made important decisions under false pretenses.


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