Capita chief executive Adolfo Hernandez has told MPs the company will “not stop” until its failures are fixed, following fierce criticism over delays in administering the civil service pension scheme. The outsourcing giant, which manages the pensions of 1.7 million members, has faced mounting pressure after thousands of civil servants were left waiting for payments and retirement quotes.
MPs question Capita's motives
On Wednesday, Parliament’s Public Accounts Committee questioned whether Capita views the Government as a “cash cow to be milked to the point of dropping from exhaustion”. Hernandez reiterated the firm’s apologies and said it takes its work for the state “extremely seriously”. He added: “I would love to have the opportunity to deeply, first and foremost, apologise. I would like to apologise for all the members who have been receiving a very poor service at a very difficult and challenging time in their lives.”
Backlog and government response
The Cabinet Office confirmed there were more than 6,700 outstanding quotations for past retirement dates and 4,100 bereavement cases. Ministers have threatened to bring the contract back under government management. Earlier this week, Cabinet Office minister Nick Thomas-Symonds pledged to recover “every single penny” from Capita, and the government deployed a 140-strong team of civil servants to clear the backlog.
Capita's turnaround efforts
Hernandez said the group is “moving at pace” with a ramped-up cost-cutting plan after swinging back to an annual profit. The civil service pension contract is one of at least 80 government contracts held by Capita. Despite the criticism, Hernandez insisted the firm sees the Government as a partner.
