Theresa May's offer to defend a £ 14 million Brexit ferry contract today broke apart spectacularly after she was accused of misleading PMQs.
The Prime Minister claimed that "Sea Due Due Diligence" had been carried out at Seaborne Freight – the company broke off over the weekend after signing a contract for ferries, even though no ferries were available.
Their evidence, however, was to name three companies behind the controls – without mentioning what these companies actually did.
People immediately cited the respected and independent National Audit Office, which confirmed that Deloitte had "made no formal assessment of the financial stability of Seaborne."
With regard to Deloitte, the NAO stated: "The standard tests could not be conducted on Seaborne as there was no financial information since they were only included in April 2017."
Instead, Deloitte submitted "a review of the financial information of the ferry operators to assess their financial robustness, including profitability, solvency and liquidity." The valuation was reported as a numerical value. "
A second company, Slaughter & May, conducted a "fundamental background review" on Seaborne and its management, NAO said.
The third, Mott MacDonald, conducted a review that identified "significant execution risks" surrounding the Seaborne Freight contract.
Shadow Transport Secretary of State Andy McDonald said: "The Prime Minister claims that Seaborne Freigh's treaty has been carefully examined.
"She is wrong.
"Chris Grayling bypassed key procurement oversight processes to avoid the now terminated contract."
Jon Ashworth, Shadow Health Minister, said, "She's drowning, Theresa May is really all at sea over Seaborne Freight.
It came when Jeremy Corbyn plundered the "fiasco" of the Brexit ferry company without ferries in a furious clash of PMQs.
Labor leader Theresa May said Seaborne Freight had shown the "Shambolic" state of Brexit – prompting her to overthrow Tory transport chief Chris Grayling over the saga.
Unusually, he dedicated all six of his prime minister's questions to the confusion that had occurred over the weekend.
Seaborne received a £ 13.8 million deal for additional ferry services after March 29th. However, the company was relieved after grave concerns, including that there were no ferries.
This has put Mr. Grayling in the limelight after Tory repeatedly defended Seaborne's deal.
The company did not receive any money, but MEPs heard that £ 800,000 was spent on putting papers together and making checks.
Ms. May told MEPs, "When all of these leases were leased, due due diligence was carried out.
"This included a third-party assessment by the companies that applied for the job.
"This process would have cost, regardless of who signed the contract with."
She added, "The contract was awarded following commercial, technical and financial assurance at a level that reflects the company's status as a newcomer to the market, and not just from high-level DFT staff, but from third-party organizations with experience and expertise Running in this area.
"These include Deloitte, Mott Macdonald and Slaughter and May."
The leader of Labor said today that the company had received only a limited background investigation regarding "seemingly unequivocal rule violations".
He claimed that some directors had "failed a due diligence test," but the tests did not go far enough.
And he said a high-level panel was denied "the opportunity to question the deal."
"What went wrong?" Mr. Corbyn asked.
He said Mr. Grayling had ignored warnings about anything from drones to airport security to the outsourcing of Giant Carillion.
"The Minister of Transport is now responsible for an important and crucial aspect of Brexit planning," said Jeremy Corbyn.
"How can the PM say that she can trust the Minister of Transport?"
Theresa May said, "What he seems to suggest is that the government should never look at startup companies.
"It's entirely true that the government has ensured that most of these contracts went to well-established companies, and I think it's entirely true that a company whose due diligence was conducted is not good because it is was … and we will make sure the capacity of the ferry is there. "