Go-Ahead group admits serious errors and failures in how it ran Southeastern rail franchise
Train operator Go-Ahead group admits serious errors and failures in how it ran Southeastern rail – after it was stripped of route for failing to declare £25m of taxpayers’ cash over seven-year spell
Train services on the network were taken over by Government earlier this yearNetwork stretches across SE England including London, Kent and East SussexCompany’s chief financial officer Elodie Brian resigned after franchise stripped
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Train operator Go-Ahead group has admitted to serious errors and failures in the way it ran the Southeastern rail franchise – and now expects to pay a fine.
Services on the network were taken over in October by the Government after Southeastern failed to declare over £25million of taxpayers’ cash.
The undeclared sums relate to ‘variable track access charges’, which are fees that Southeastern pays to a group of private investors in return for using the high-speed tracks running between Kent and London known as HS1.
Under the terms of the contract, the Government pays Southeastern a fee, which it passes on to HS1.
Any extra cash left over was meant to be returned to the taxman – but this was withheld. Errors have been identified dating back as far as 2014.
Go-Ahead said today it expects to pay a fine, although it said the full amount is unclear at this time.
Train operator Go-Ahead group has admitted to serious errors and failures in the way it ran the Southeastern rail franchise
Southeastern’s network runs across South East England, covering London, Kent, East Sussex and the High Speed 1 line
The company said: ‘Notwithstanding the complexity of the franchise agreements relating to LSER (London & South Eastern Railway Ltd), the review has found that serious errors were made by LSER with respect to its engagement with the DfT over several years.
‘In particular, the group accepts that, by failing to notify the DfT of certain overpayments or monies due to the DfT, LSER breached contractual obligations of good faith contained in the franchise agreements. Accordingly, the group has apologised to the DfT.
‘The behaviours identified by the independent committee which contributed to the management of LSER’s contract with the DfT do not reflect the values and standards of conduct that the group expects of its colleagues.’
Go-Ahead said it believes it has a good corporate governance structure in place but that it will look at ways to improve it.
The company added that, as a result of the investigation, it will be delaying publication of its results until next year.
The Southeastern franchise had been owned by Govia – a joint venture between Go-Ahead Group (65%) and Keolis (35%) – since 2006.
The network is one of the busiest in Britain, stretching across south-east England including London, Kent, East Sussex and the High Speed 1 line.
Go-Ahead Group’s chief financial officer Elodie Brian resigned after the decision to take over the franchise was announced.
Transport Secretary Grant Shapps said at the time an investigation by his department identified that Govia had not declared more than £25 million of historic taxpayer funding which should have been returned.
