C-charge firm fined £4.5million
Capita, the firm behind the congestion charge, has been fined £4.5 million for missing vital targets, new figures reveal.
The firm, on course to make £280million out of its five-year contract to manage the charge for Transport for London (TfL), has paid the equivalent of £7,400 in charges and fines for every day the toll has been in operation.
Despite this, Capita looks set to to have its contract extended by the Mayor to February 2009, making an extra £38 million.
It is also likely to win the contract when TfL extends the charge into Kensington and Chelsea.
The penalties, paid from February 2003 to last month, were for failing to meet targetsincluding ones governing how complaints and appeals from motorists are handled.
Today Lynne Featherstone, London Assembly Liberal Democrat transport spokeswoman, said: "From the start of congestion charging the ability of Capita to meet the targets set them has been consistently poor.
"Questions must be asked of Ken Livingstone as to why he is considering giving the goahead to Capita for both an extension on its existing contract and a new contract for the westward extension."
Signs that Capita had problems with its congestion charge contract emerged in October 2003. Then it was revealed that around 35 per cent of "performance indicators" were not being fully met - costing the firm around £580,000 a month in charges and fines.
By October last year, 21 per cent of the indicators were still not being met, costing Capita £100,000.
Capita is penalised if:
- It makes serious errors when fighting an appeal against a fine by a motorist;
- It doesn't send important evidence to independent adjudicators on time;
- Written responses to complaints are judged "poor" by TfL;
- Bailiffs are incorrectly briefed.
Capita is also penalised for late management reports, cars that are incorrectly clamped for non-payment, "valid" complaints, problems at its callcentre and for errors on its "persistent evader" list.
TfL said Capita is fined for "every single failure occurrence" but added that it had made "significant improvements".
In a written statement, it said: "The application of penalties is... not necessarily an indication of a poor or failing service but a tough and strict performance regime that strives for 100 per cent accuracy in the processing of all penalty charge notices, representations and appeals."
TfL said it now wins 70-80 per cent of appeals, in contrast to a year ago when half were won by motorists. Capita was unable to comment.
