Contingency Liability for Ajax Lessons Learned Review

(Limited Text - Ministerial Extracts only)

Tuesday 29th March 2022 Written Statements

[The Minister for Defence Procurement (Jeremy Quin)]

I wish to inform the House that I am today laying a Departmental Minute to advise of a new contingent liability associated with the Ajax Lessons Learned Review.

Clive Sheldon QC has agreed to lead the review. Negotiations are ongoing and the contingent liability will come into force on the formal appointment of the Chair.

The Departmental Minute describes the contingent liability that the MOD will hold, which will provide an indemnity for conducting and reporting the review. The maximum contingent liability held against the MOD is unquantifiable and will remain following publication of the report.

It is usual to allow a period of 14 sitting days prior to accepting a contingent liability, to provide Members of Parliament an opportunity to raise any objections.

Exposure is limited to the contingent liability of any legal action in the run-up to and following the publication of the Review’s report. It will not cover claims for liabilities:

Arising from any fraud, wilful misconduct, dishonesty, or gross negligence on the part of a member of the Review Team;

Arising from any wilful breach of any contract or agreement with the Ministry of Defence relating to the Review Team.

It is the view of the Department that the likelihood of any claim is remote.

[HCWS741]