Dvla Worker Faces Inquiry Over Payment Up Front For £1.4m Machine | Number Plates, DVLA Number Plates - CarReg
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DVLA WORKER FACES INQUIRY OVER PAYMENT UP FRONT FOR £1.4M MACHINE

THE DVLA has suspended a senior member of staff and launched an investigation after it paid £1.4m for equipment to a company which has gone into administration.

The DVLA has not received the piece of automatic mailing equipment from Bowe Systec, which would have been used to upgrade one of its 10 mailing machines and been capable of putting out 22,000 letters an hour.

The DVLA sends out around 110 million letters per year to UK motorists. A DVLA spokesman said yesterday: “We have paid for a piece of kit we have not received.

“That does not mean we will not receive it eventually and discussions are ongoing with the administrators of the company with which we had an ongoing contract.

“We normally have a policy of not paying for equipment until we receive it and the investigation in this case is to establish what has happened here.”

DVLA chief executive Simon Tse said: “The DVLA is aware that one of its mailing machine suppliers, Bowe Systec, has gone into administration.

“Our priority is to ensure our operations continue to run as smoothly as possible and that our customers are not affected.

“We are working with the appointed administrators to conclude outstanding business. This includes the delivery of equipment, paid for by the DVLA, which is yet to be received.

“An internal investigation is under way into the process that led to DVLA facing potential financial exposure to Bowe Systec following it going into administration.

“A member of staff has been suspended pending that investigation.”

The DVLA spokesman said yesterday the problem would not affect day-to-day operations at the DVLA. He said: “We have nine other mailing machines working and the machine which is due for upgrade is still working.”

The automatic mail machines sort a huge amount of mail and have a six to seven year lifespan.

Swansea East Labour MP Sian James said yesterday that no organisation would wish to find itself in such a situation at a time of great financial pressure.

She added: “I’m seeking further information from Mr Tse on this matter.”

Bowe Systec’s parent company, Bowe Group, is a world leader in mailroom software systems and equipment and generates over 60% of its turnover in the US.

The company affected by the administration has around 600 workers while the group as a whole has around 3,600 employees worldwide.

In 2009 it generated group turnover of 367.1m (£301m), 13.5% down on the previous year. The fall was attributed to the recession.

Bowe Systec issued this statement earlier this month: “On June 8, 2010, Richard Hawes and Julia Branson of Deloitte LLP were appointed joint administrators and now manage the affairs, business and property of Bowe Systec Limited.”

Bowe Group was founded in Germany in 1945. It was a pioneer in the development of equipment to manage the high volumes of continuous stationery created by computer technology.



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