Mon, 27 Oct 2025

Mon, 27 Oct 2025 MoJ owes us £20m after contractor collapse, say suppliers

Suppliers say millions are owed despite the government promising to use protected accounts.

* At least 40 companies are owed £20m by the Ministry of Justice (MoJ) for work on three prison upgrades in England, despite the use of Project Bank Accounts (PBAs) designed to protect smaller suppliers.
* The PBAs were supposed to hold payments in dedicated accounts that could only be used to pay suppliers, but it appears no money was actually paid into them.
* Two companies working on an upgrade to HMP Birmingham said the PBAs "weren't worth the paper they were written on" and are owed hundreds of thousands of pounds for work done before ISG's administration in September.
* Suppliers say they have been left with significant financial difficulties, including bankruptcy threats, due to the lack of payment.
* The MoJ has declined to comment, but a spokesperson said they could not comment due to possible legal action.
* Trade body Finishes & Interiors Sector (FIS) is supporting some of the firms owed money and helping to co-ordinate legal action against the MoJ.
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