Repairs left unfinished as firm behind huge schools PFI contract goes into liquidation
The company behind the biggest schools Private Finance Initiative (PFI) contract in England has gone into liquidation, raising concerns that 88 schools in Stoke-on-Trent could be left with unfinished building work and repairs.
Schools in the city have paid Transform Stoke Schools Ltd (TSSL) to keep their buildings in good repair throughout the 25-year contract, which ends on October 25.
In a letter seen by the BBC, the chief executive of Stoke-on-Trent City Council told schools that TSSL would go into Voluntary Creditor Liquidation; which means its managers are taking steps to shut it down.
The council told the BBC its priority was to ensure children had safe, high-quality buildings.
council clarified He said not all repairs would be completed as the contract expired at the end of October and he was working with the main contractor to ensure work could continue.
The letter sent to schools this week states that some suppliers may not have been paid and that unfinished work “has not been completed fully and satisfactorily”.
Some of the work done has not yet been guaranteed.
In February, BBC reported concerns That TSSL will walk away at the end of the contract, leaving the schools with huge repair bills.
The investigation found almost half of schools had withheld contract payments due to disputes over unfinished work and concerns about the quality of some repairs.
Gareth Snell, Labor MP for Stoke-on-Trent Central, told the BBC it was “extremely disappointing but not at all surprising that TSSL has moved away from its commitments”.
He also said the city council “needs serious answers about the contract’s oversight” and that schools have questions about “when the work will be finished, how it will be paid for, and who will make sure the buildings used to teach our children are in good repair.”
The PFI contract, which sees a private company in Stoke-on-Trent paid to maintain buildings, is the first of dozens of similar deals due to close across the UK in the coming years.
Stoke-on-Trent City Council told the BBC it wanted to reassure schools and parents that it was planning the possibility of liquidating TSSL, keeping the money and setting aside £3.5 million.
The council said it planned to work with schools to get a clear list of outstanding work.
“We remain committed to delivering the best possible outcome and ensuring children in Stoke-on-Trent have safe, high-quality school environments,” he said.
In the longer term, the council said a full evaluation of the contract would be required.
The BBC asked TSSL executives to respond to concerns.
What happens in Stoke-on-Trent will have implications for dozens of similar PFI deals, many of which will expire from 2025.
in 2020 National Audit Office warned He said that if preparations were not made for the end of the contract, “there is a significant risk that vital infrastructure such as schools and hospitals will not be returned to the public sector in the correct condition and taxpayers and service users will bear the brunt of the additional costs”.
