Technical flaws in the way the franchise process for control of the West Coast Main Line was conducted emerged after the Department for Transport (DfT) called in PwC to look at the deal.
The flaws, which were a result of the way in which the level of risk in the bids was evaluated as a result of mistakes in the way inflation and passenger numbers were taken into account, were discovered by PwC when they were called in to examine the deal.
PwC were called in by former transport secretary Justine Greening following the legal challenge entered by Virgin.
An independent review has now been launched which will be lead by former PwC chairman Ed Smith. An initial report is expected by the end of October.
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