City Spy: NAO exposes such Whitehall waste

Just how much should we believe ministers and civil servants when they claim to be saving money? Not a lot.

Proof of their spinning comes from the spending watchdog, the National Audit Office. It's released reviews of "value for money savings" reported by the Department for Transport and Home Office as part of their 2008-09 annual reports.

"The Department for Transport reported savings of £892 million, of which the NAO found that 43% fairly represent realised cash savings, 22% may represent realised cash savings but with some uncertainty, and 35% may be overstated."

So the majority, 57%, may be false. At the Home Office, that figure is also high - 41%.

"The NAO sampled £338 million of £544 million reported savings and found 59% of these fairly represent realised cash savings, 24% may represent realised cash savings but with some uncertainty, and the NAO has significant concerns over 17%."

Meanwhile, Lord Palmer objects to the proposed "derisory" £200 a day attendance allowance for the House of Lords. "My youngest son, who, at the moment, is an unqualified accountant, is charged out at £125 an hour. If he was qualified, that would be nearer £200," says Palmer.

"If a senior partner is charged out, it is for £600 an hour." Except that the accountants are expected to work hard at it for the full hour.

Peers can clock in for two minutes and vanish but still receive an allowance for a full day's work.

Over the months, City Spy has diligently reported the tribulations of Prince Andrew's friend, ex-Bear Stearns money manager and convicted sex offender Jeffrey Epstein.

There is some good news for Epstein: moves to have his privates photographed as evidence in one of the sex abuse cases filed against him involving under-age girls have been thrown out by a US judge.

Epstein served 13 months in jail on criminal charges of soliciting prostitution and procuring a minor for prostitution.

Cheeky Miami lawyer Spencer Kuvin argued that identification was important for the case - but, presumably to the pleasure of the one-time beau of fraud Robert Maxwell's daughter Ghislaine, judge Donald Hafele ruled the request "intrusive". What a relief!

Cadbury chief executive Todd Stitzer and his team, on the receiving end of a £10 billion offer from Kraft, are stopping at no one in their attempt to see off the pesky Americans. Members of the House of Lords mysteriously have found boxes of Cadbury's Roses chocolates in their in-trays with a note saying: "We wanted to wish you and your team a very merry Christmas."

Nike says it is standing by Tiger Woods - just about the only one of the golfer's sponsors to do so. Mark Parker, Nike's chief executive, insists the company "would continue to support Tiger and his family as we look forward to his return".

While Parker's words are presumably well-intentioned, City Spy can't help thinking that Nike is in too deep with Woods to drop him immediately - that unlike his other backers, Nike has put his name directly on to a whole range of equipment worth a fortune and it can't suddenly turn round and scrap the lot.