The UK government has been criticised for "serious failings" in the running of its flagship training scheme which collapsed last November.
The House of Commons Education and Skills Committee issued its report into the Individual Learning Accounts (ILAs) on Wednesday.
"There were serious failings by the Department for Education and Skills [DfES] in the preparation and running of the ILA scheme," the report concluded.
The government closed the scheme in November 2001 amid allegations of widespread fraud and abuse, and the disclosure that one training provider had been offered the details of almost 1,000 accounts.
Unscrupulous providers could have used these details to draw up to £200 from each account.
By the time it was closed, the programme was overspent by £66.9m and almost 6,000 complaints have been received alleging that accounts had been emptied.
The DfES was castigated for its failure to learn from previous experience in setting up similar schemes, or to make firmer security provisions with outsourcing partner Capita.
The contract for the scheme was worth almost £55m over a five-year period.
Capita also came in for criticism for failing to use its expertise to warn the DfES about the dangers of fraud.
The Committee had heard evidence from Iris Hill, a trainer at Hairnet, that Capita had shown "no interest at all in hearing about potential fraud" when it reported its concerns, concluding that such reports "were too readily dismissed as computer error".
Capita was slammed for "serious shortcomings" after its failure to identify weaknesses in the security of ILAs. It should have known that "ILAs were a disaster waiting to happen", said the report.
But three months before the national roll-out the DfES received a warning from the Further Education Funding Council of the "risk to public funding if rigorous quality arrangements were not put in place". The warnings were ignored.
Much of the criticism from the Committee concerned the DfES' failure to share the contractual risk with its outsourcing partners. "Inadequate steps" were taken to ensure that security would be robust, it said.
Copies of the contract between Capita and the DfES have been seen exclusively by vnunet.com. It required Capita to ensure that individuals were able to access their own accounts "in such a way that only they will have access to the information".
Consultants KPMG had advised the DfES throughout the development phase of the framework.
The Committee called for the "quality of the contribution made by KPMG" to be examined by the National Audit Office as part of its continuing investigation into the causes of the fiasco.
The effect of the early withdrawal of the scheme on IT trainers has been dramatic.
The Association of Computer Trainers told the Committee that three quarters of the training centres they surveyed now faced the threat of "redundancies or even closure".
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