Sunk! £9m lost on wreck deal
MINISTERS managed to turn the chance to cash in on £ 150million of sunken treasure into a £9million loss – with taxpayers left out of pocket.
The huge silver bullion haul was found in a cargo ship torpedoed in the Second World War with the loss of 85 lives.
But although tons of the precious metal were recovered, bungling ministers still ended up down on the deal.
The Department of Transport received £6million from a US firm employed to salvage the wreck. But it paid another £15million in a settlement to a second company which had complained about how the contract was awarded.
The department has reviewed its own procurement process and considered disciplinary action against officials.
Transport minister John Hayes said the settlement arose after “one unsuccessful bidder made a claim concerning the procurement”.
The ship, the 7,000-ton Gairsoppa, was carrying silver bars from India to Britain when she was sunk in 15,400ft of water 300 miles off Ireland in 1941.
A deal struck with Odyssey Marine Exploration let the firm keep 80 per cent of what it raised and gave the Treasury the rest. Some 48 tons were brought up.
Labour’s Kevan Jones, who wants parliamentary financial watchdogs to investigate, said: “This was meant to be payday for taxpayer but it was incompetently handled, with £9million lost.”